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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Free Efile 1040ez

Amend Prior Years TaxesFree H&r Block SoftwareFree 2013 Federal & State Tax Preparation On LineHow Do I File 2011 Tax ReturnFiling 2012 Tax ReturnsCan I File 2011 Taxes OnlineFree Tax Preparation Software1040ez Worksheet Line FIrs Gov Free FileTax Act Online 2012Free State Tax On LineOnline Taxes H&rblockFile Amended 2012 Tax ReturnWww Onlinetaxes Hrblock ComHow To File A 1040x With Turbotax2011 Irs Form 1040ez2006 Tax SoftwareIrs Tax Form 1040ezState Income Tax Return FormsIrs 1040ez Form 2012Turbo Tax Free OnlineFederal And State Income Tax FormsIrs Tax Forms 1040ez2012 Tax Form 9402010 Irs Form 1040Does H&r Block Do Taxes For FreeFile State Taxes FreeFile Federal Taxes Online FreeAmended Tax Return FormCan I Efile 2011 TaxesH&r Block's Free FileMilitary Turbotax1040ez 2011File 2009 Taxes Online FreeDoyourtaxes NetStudent Tax Return CalculatorAmended 2011 Tax ReturnHow To File Taxes For 2009Compare State Income TaxesTax Amendment Form 2011

Free Efile 1040ez

Free efile 1040ez 5. Free efile 1040ez   Exemptions, Deductions, and Credits Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Items Related to Excluded Income Exemptions Contributions to Foreign Charitable Organizations Moving ExpensesAllocation of Moving Expenses Forms To File Contributions to Individual Retirement Arrangements Taxes of Foreign Countries and U. Free efile 1040ez S. Free efile 1040ez PossessionsCredit for Foreign Income Taxes Deduction for Foreign Income Taxes Deduction for Other Foreign Taxes How To Report Deductions Topics - This chapter discusses: The rules concerning items related to excluded income, Exemptions, Contributions to foreign charitable organizations, Moving expenses, Contributions to individual retirement arrangements (IRAs), Taxes of foreign countries and U. Free efile 1040ez S. Free efile 1040ez possessions, and How to report deductions. Free efile 1040ez Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 514 Foreign Tax Credit for Individuals 521 Moving Expenses 523 Selling Your Home 590 Individual Retirement Arrangements (IRAs) 597 Information on the United States—Canada Income Tax Treaty Form (and Instructions) 1116 Foreign Tax Credit 2106 Employee Business Expenses 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 3903 Moving Expenses Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business SS-5 Application for a Social Security Card W-7 Application for IRS Individual Taxpayer Identification Number See chapter 7 for information about getting these publications and forms. Free efile 1040ez Items Related to Excluded Income U. Free efile 1040ez S. Free efile 1040ez citizens and resident aliens living outside the United States generally are allowed the same deductions as citizens and residents living in the United States. Free efile 1040ez If you choose to exclude foreign earned income or housing amounts, you cannot deduct, exclude, or claim a credit for any item that can be allocated to or charged against the excluded amounts. Free efile 1040ez This includes any expenses, losses, and other normally deductible items that are allocable to the excluded income. Free efile 1040ez You can deduct only those expenses connected with earning includible income. Free efile 1040ez These rules apply only to items definitely related to the excluded earned income and they do not apply to other items that are not definitely related to any particular type of gross income. Free efile 1040ez These rules do not apply to items such as: Personal exemptions, Qualified retirement contributions, Alimony payments, Charitable contributions, Medical expenses, Mortgage interest, or Real estate taxes on your personal residence. Free efile 1040ez For purposes of these rules, your housing deduction is not treated as allocable to your excluded income, but the deduction for self- employment tax is. Free efile 1040ez If you receive foreign earned income in a tax year after the year in which you earned it, you may have to file an amended return for the earlier year to properly adjust the amounts of deductions, credits, or exclusions allocable to your foreign earned income and housing exclusions. Free efile 1040ez Example. Free efile 1040ez In 2012, you had $90,400 of foreign earned income and $9,500 of deductions allocable to your foreign earned income. Free efile 1040ez You did not have a housing exclusion. Free efile 1040ez Because you excluded all of your foreign earned income, you would not have been able to claim any of the deductions on your 2012 return. Free efile 1040ez In 2013, you received a $12,000 bonus for work you did abroad in 2012. Free efile 1040ez You can exclude $4,700 of the bonus because the limit on the foreign earned income exclusion for 2012 was $95,100 and you have already excluded $90,400. Free efile 1040ez Since you must include $7,300 of the bonus ($12,000 − $4,700) for work you did in 2012 in income, you can file an amended return for 2012 to claim $677 of the deductions. Free efile 1040ez This is the deductions allocable to the foreign earned income ($9,500) multiplied by the includible portion of the foreign earned income ($7,300) and divided by the total foreign earned income for 2012 ($102,400). Free efile 1040ez Exemptions You can claim an exemption for your nonresident alien spouse on your separate return, provided your spouse has no gross income for U. Free efile 1040ez S. Free efile 1040ez tax purposes and is not the dependent of another U. Free efile 1040ez S. Free efile 1040ez taxpayer. Free efile 1040ez You also can claim exemptions for individuals who qualify as your dependents. Free efile 1040ez To be your dependent, the individual must be a U. Free efile 1040ez S. Free efile 1040ez citizen, U. Free efile 1040ez S. Free efile 1040ez national, U. Free efile 1040ez S. Free efile 1040ez resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins. Free efile 1040ez Children. Free efile 1040ez   Children usually are citizens or residents of the same country as their parents. Free efile 1040ez If you were a U. Free efile 1040ez S. Free efile 1040ez citizen when your child was born, your child generally is a U. Free efile 1040ez S. Free efile 1040ez citizen. Free efile 1040ez This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent. Free efile 1040ez   If you have a legally adopted child who is not a U. Free efile 1040ez S. Free efile 1040ez citizen, U. Free efile 1040ez S. Free efile 1040ez resident, or U. Free efile 1040ez S. Free efile 1040ez national, the child meets the citizen requirement if you are a U. Free efile 1040ez S. Free efile 1040ez citizen or U. Free efile 1040ez S. Free efile 1040ez national and the child lived with you as a member of your household all year. Free efile 1040ez Social security number. Free efile 1040ez   You must include on your return the social security number (SSN) of each dependent for whom you claim an exemption. Free efile 1040ez To get a social security number for a dependent, apply at a Social Security office or U. Free efile 1040ez S. Free efile 1040ez consulate. Free efile 1040ez You must provide original or certified copies of documents to verify the dependent's age, identity, and citizenship, and complete Form SS-5. Free efile 1040ez   If you do not have an SSN for a child who was born in 2013 and died in 2013, attach a copy of the child's birth certificate to your tax return. Free efile 1040ez Print “Died” in column (2) of line 6c of your Form 1040 or Form 1040A. Free efile 1040ez   If your dependent is a nonresident alien who is not eligible to get a social security number, you must list the dependent's individual taxpayer identification number (ITIN) instead of an SSN. Free efile 1040ez To apply for an ITIN, file Form W-7 with the IRS. Free efile 1040ez It usually takes 6 to 10 weeks to get an ITIN. Free efile 1040ez Enter your dependent's ITIN wherever an SSN is requested on your tax return. Free efile 1040ez More information. Free efile 1040ez   For more information about exemptions, see Publication 501. Free efile 1040ez Contributions to Foreign Charitable Organizations If you make contributions directly to a foreign church or other foreign charitable organization, you generally cannot deduct them. Free efile 1040ez Exceptions are explained under Canadian, Mexican, and Israeli charities, later. Free efile 1040ez You can deduct contributions to a U. Free efile 1040ez S. Free efile 1040ez organization that transfers funds to a charitable foreign organization if the U. Free efile 1040ez S. Free efile 1040ez organization controls the use of the funds by the foreign organization or if the foreign organization is just an administrative arm of the U. Free efile 1040ez S. Free efile 1040ez organization. Free efile 1040ez Canadian, Mexican, and Israeli charities. Free efile 1040ez   Under the income tax treaties with Canada, Mexico and Israel, you may be able to deduct contributions to certain Canadian, Mexican, and Israeli charitable organizations. Free efile 1040ez Generally, you must have income from sources in Canada, Mexico, or Israel, and the organization must meet certain requirements. Free efile 1040ez See Publication 597, Information on the United States-Canada Income Tax Treaty, and Publication 526, Charitable Contributions, for more information. Free efile 1040ez Moving Expenses If you moved to a new home in 2013 because of your job or business, you may be able to deduct the expenses of your move. Free efile 1040ez Generally, to be deductible, the moving expenses must have been paid or incurred in connection with starting work at a new job location. Free efile 1040ez See Publication 521 for a complete discussion of the deduction for moving expenses and information about moves within the United States. Free efile 1040ez Foreign moves. Free efile 1040ez   A foreign move is a move in connection with the start of work at a new job location outside the United States and its possessions. Free efile 1040ez A foreign move does not include a move back to the United States or its possessions. Free efile 1040ez Allocation of Moving Expenses When your new place of work is in a foreign country, your moving expenses are directly connected with the income earned in that foreign country. Free efile 1040ez If you exclude all or part of the income that you earn at the new location under the foreign earned income exclusion or the foreign housing exclusion, you cannot deduct the part of your moving expense that is allocable to the excluded income. Free efile 1040ez Also, you cannot deduct the part of the moving expense related to the excluded income for a move from a foreign country to the United States if you receive a reimbursement that you are able to treat as compensation for services performed in the foreign country. Free efile 1040ez Year to which expense is connected. Free efile 1040ez   The moving expense is connected with earning the income (including reimbursements, as discussed in chapter 4 under Reimbursement of moving expenses ) either entirely in the year of the move or in 2 years. Free efile 1040ez It is connected with earning the income entirely in the year of the move if you qualify for the foreign earned income exclusion under the bona fide residence test or physical presence test for at least 120 days during that tax year. Free efile 1040ez   If you do not qualify under either the bona fide residence test or the physical presence test for at least 120 days during the year of the move, the expense is connected with earning the income in 2 years. Free efile 1040ez The moving expense is connected with the year of the move and the following year if the move is from the United States to a foreign country. Free efile 1040ez The moving expense is connected with the year of the move and the preceding year if the move is from a foreign country to the United States. Free efile 1040ez Amount allocable to excluded income. Free efile 1040ez   To figure the amount of your moving expense that is allocable to your excluded foreign earned income (and not deductible), you must multiply your total moving expense deduction by a fraction. Free efile 1040ez The numerator (top number) of the fraction is the total of your excluded foreign earned income and housing amounts for both years and the denominator (bottom number) of the fraction is your total foreign earned income for both years. Free efile 1040ez Example. Free efile 1040ez On November 1, 2012, you transfer to Monaco. Free efile 1040ez Your tax home is in Monaco, and you are a bona fide resident of Monaco for the entire tax year 2013. Free efile 1040ez In 2012, you paid $6,000 for allowable moving expenses for your move from the United States to Monaco. Free efile 1040ez You were fully reimbursed (under a nonaccountable plan) for these expenses in the same year. Free efile 1040ez The reimbursement is included in your income. Free efile 1040ez Your only other income consists of $16,000 wages earned in 2012 after the date of your move, and $100,100 wages earned in Monaco for 2013. Free efile 1040ez Because you did not meet the bona fide residence test for at least 120 days during 2012, the year of the move, the moving expenses are for services you performed in both 2012 and the following year, 2013. Free efile 1040ez Your total foreign earned income for both years is $122,100, consisting of $16,000 wages for 2012, $100,100 wages for 2013, and $6,000 moving expense reimbursement for both years. Free efile 1040ez You have no housing exclusion. Free efile 1040ez The total amount you can exclude is $113,190, consisting of the $97,600 full-year exclusion for 2013 and a $15,590 part-year exclusion for 2012 ($95,100 times the fraction of 60 qualifying bona fide residence days over 366 total days in the year). Free efile 1040ez To find the part of your moving expenses that is not deductible, multiply your $6,000 total expenses by the fraction $113,190 over $122,100. Free efile 1040ez The result, $5,562, is your nondeductible amount. Free efile 1040ez    You must report the full amount of the moving expense reimbursement in the year in which you received the reimbursement. Free efile 1040ez In the preceding example, this year was 2012. Free efile 1040ez You attribute the reimbursement to both 2012 and 2013 only to figure the amount of foreign earned income eligible for exclusion for each year. Free efile 1040ez Move between foreign countries. Free efile 1040ez   If you move between foreign countries, your moving expense is allocable to income earned in the year of the move if you qualified under either the bona fide residence test or the physical presence test for a period that includes at least 120 days in the year of the move. Free efile 1040ez New place of work in U. Free efile 1040ez S. Free efile 1040ez   If your new place of work is in the United States, the deductible moving expenses are directly connected with the income earned in the United States. Free efile 1040ez If you treat a reimbursement from your employer as foreign earned income (see the discussion in chapter 4), you must allocate deductible moving expenses to foreign earned income. Free efile 1040ez Storage expenses. Free efile 1040ez   These expenses are attributable to work you do during the year in which you incur the storage expenses. Free efile 1040ez You cannot deduct the amount allocable to excluded income. Free efile 1040ez Moving Expense Attributable to Foreign Earnings in 2 Years If your moving expense deduction is attributable to your foreign earnings in 2 years (the year of the move and the following year), you should request an extension of time to file your return for the year of the move until after the end of the second year. Free efile 1040ez By then, you should have all the information needed to properly figure the moving expense deduction. Free efile 1040ez See Extensions under When To File and Pay in chapter 1. Free efile 1040ez If you do not request an extension, you should figure the part of the moving expense that you cannot deduct because it is allocable to the foreign earned income you are excluding. Free efile 1040ez You do this by multiplying the moving expense by a fraction, the numerator (top number) of which is your excluded foreign earned income for the year of the move, and the denominator (bottom number) of which is your total foreign earned income for the year of the move. Free efile 1040ez Once you know your foreign earnings and exclusion for the following year, you must either: Adjust the moving expense deduction by filing an amended return for the year of the move, or Recapture any additional unallowable amount as income on your return for the following year. Free efile 1040ez If, after you make the final computation, you have an additional amount of allowable moving expense deduction, you can claim this only on an amended return for the year of the move. Free efile 1040ez You cannot claim it on the return for the second year. Free efile 1040ez Forms To File Report your moving expenses on Form 3903. Free efile 1040ez Report your moving expense deduction on line 26 of Form 1040. Free efile 1040ez If you must reduce your moving expenses by the amount allocable to excluded income (as explained later under How To Report Deductions ), attach a statement to your return showing how you figured this amount. Free efile 1040ez For more information about figuring moving expenses, see Publication 521. Free efile 1040ez Contributions to Individual Retirement Arrangements Contributions to your individual retirement arrangements (IRAs) that are traditional IRAs or Roth IRAs are generally limited to the lesser of $5,500 ($6,500 if 50 or older) or your compensation that is includible in your gross income for the tax year. Free efile 1040ez In determining compensation for this purpose, do not take into account amounts you exclude under either the foreign earned income exclusion or the foreign housing exclusion. Free efile 1040ez Do not reduce your compensation by the foreign housing deduction. Free efile 1040ez If you are covered by an employer retirement plan at work, your deduction for your contributions to your traditional IRAs is generally limited based on your modified adjusted gross income. Free efile 1040ez This is your adjusted gross income figured without taking into account the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. Free efile 1040ez Other modifications are also required. Free efile 1040ez For more information on IRAs, see Publication 590. Free efile 1040ez Taxes of Foreign Countries and U. Free efile 1040ez S. Free efile 1040ez Possessions You can take either a credit or a deduction for income taxes paid to a foreign country or a U. Free efile 1040ez S. Free efile 1040ez possession. Free efile 1040ez Taken as a deduction, foreign income taxes reduce your taxable income. Free efile 1040ez Taken as a credit, foreign income taxes reduce your tax liability. Free efile 1040ez You must treat all foreign income taxes the same way. Free efile 1040ez If you take a credit for any foreign income taxes, you cannot deduct any foreign income taxes. Free efile 1040ez However, you may be able to deduct other foreign taxes. Free efile 1040ez See Deduction for Other Foreign Taxes, later. Free efile 1040ez There is no rule to determine whether it is to your advantage to take a deduction or a credit for foreign income taxes. Free efile 1040ez In most cases, it is to your advantage to take foreign income taxes as a tax credit, which you subtract directly from your U. Free efile 1040ez S. Free efile 1040ez tax liability, rather than as a deduction in figuring taxable income. Free efile 1040ez However, if foreign income taxes were imposed at a high rate and the proportion of foreign income to U. Free efile 1040ez S. Free efile 1040ez income is small, a lower final tax may result from deducting the foreign income taxes. Free efile 1040ez In any event, you should figure your tax liability both ways and then use the one that is better for you. Free efile 1040ez You can make or change your choice within 10 years from the due date for filing the tax return on which you are entitled to take either the deduction or the credit. Free efile 1040ez Foreign income taxes. Free efile 1040ez   These are generally income taxes you pay to any foreign country or possession of the United States. Free efile 1040ez Foreign income taxes on U. Free efile 1040ez S. Free efile 1040ez return. Free efile 1040ez   Foreign income taxes can only be taken as a credit on Form 1040, line 47, or as an itemized deduction on Schedule A. Free efile 1040ez These amounts cannot be included as withheld income taxes on Form 1040, line 62. Free efile 1040ez Foreign taxes paid on excluded income. Free efile 1040ez   You cannot take a credit or deduction for foreign income taxes paid on earnings you exclude from tax under any of the following. Free efile 1040ez Foreign earned income exclusion. Free efile 1040ez Foreign housing exclusion. Free efile 1040ez Possession exclusion. Free efile 1040ez If your wages are completely excluded, you cannot deduct or take a credit for any of the foreign taxes paid on your wages. Free efile 1040ez   If only part of your wages is excluded, you cannot deduct or take a credit for the foreign income taxes allocable to the excluded part. Free efile 1040ez You find the taxes allocable to your excluded wages by applying a fraction to the foreign taxes paid on foreign earned income received during the tax year. Free efile 1040ez The numerator (top number) of the fraction is your excluded foreign earned income received during the tax year minus deductible expenses allocable to that income (not including the foreign housing deduction). Free efile 1040ez The denominator (bottom number) of the fraction is your total foreign earned income received during the tax year minus all deductible expenses allocable to that income (including the foreign housing deduction). Free efile 1040ez   If foreign law taxes both earned income and some other type of income and the taxes on the other type cannot be separated, the denominator of the fraction is the total amount of income subject to foreign tax minus deductible expenses allocable to that income. Free efile 1040ez    If you take a foreign tax credit for tax on income you could have excluded under your choice to exclude foreign earned income or your choice to exclude foreign housing costs, one or both of the choices may be considered revoked. Free efile 1040ez Credit for Foreign Income Taxes If you take the foreign tax credit, you may have to file Form 1116 with Form 1040. Free efile 1040ez Form 1116 is used to figure the amount of foreign tax paid or accrued that can be claimed as a foreign tax credit. Free efile 1040ez Do not include the amount of foreign tax paid or accrued as withheld federal income taxes on Form 1040, line 62. Free efile 1040ez The foreign income tax for which you can claim a credit is the amount of legal and actual tax liability you pay or accrue during the year. Free efile 1040ez The amount for which you can claim a credit is not necessarily the amount withheld by the foreign country. Free efile 1040ez You cannot take a foreign tax credit for income tax you paid to a foreign country that would be refunded by the foreign country if you made a claim for refund. Free efile 1040ez Subsidies. Free efile 1040ez   If a foreign country returns your foreign tax payments to you in the form of a subsidy, you cannot claim a foreign tax credit based on these payments. Free efile 1040ez This rule applies to a subsidy provided by any means that is determined, directly or indirectly, by reference to the amount of tax, or to the base used to figure the tax. Free efile 1040ez   Some ways of providing a subsidy are refunds, credits, deductions, payments, or discharges of obligations. Free efile 1040ez A credit is also not allowed if the subsidy is given to a person related to you, or persons who participated in a transaction or a related transaction with you. Free efile 1040ez Limit The foreign tax credit is limited to the part of your total U. Free efile 1040ez S. Free efile 1040ez tax that is in proportion to your taxable income from sources outside the United States compared to your total taxable income. Free efile 1040ez The allowable foreign tax credit cannot be more than your actual foreign tax liability. Free efile 1040ez Exemption from limit. Free efile 1040ez   You will not be subject to this limit and will not have to file Form 1116 if you meet all three of the following requirements. Free efile 1040ez Your only foreign source income for the year is passive income (dividends, interest, royalties, etc. Free efile 1040ez ) that is reported to you on a payee statement (such as a Form 1099-DIV or 1099-INT). Free efile 1040ez Your foreign taxes for the year that qualify for the credit are not more than $300 ($600 if you are filing a joint return) and are reported on a payee statement. Free efile 1040ez You elect this procedure. Free efile 1040ez If you make this election, you cannot carry back or carry over any unused foreign tax to or from this year. Free efile 1040ez Separate limit. Free efile 1040ez   You must figure the limit on a separate basis with regard to “passive category income” and “general category income” (see the instructions for Form 1116). Free efile 1040ez Figuring the limit. Free efile 1040ez   In figuring taxable income in each category, you take into account only the amount that you must include in income on your federal tax return. Free efile 1040ez Do not take any excluded amount into account. Free efile 1040ez   To determine your taxable income in each category, deduct expenses and losses that are definitely related to that income. Free efile 1040ez   Other expenses (such as itemized deductions or the standard deduction) not definitely related to specific items of income must be apportioned to the foreign income in each category by multiplying them by a fraction. Free efile 1040ez The numerator (top number) of the fraction is your gross foreign income in the separate limit category. Free efile 1040ez The denominator (bottom number) of the fraction is your gross income from all sources. Free efile 1040ez For this purpose, gross income includes income that is excluded under the foreign earned income provisions but does not include any other exempt income. Free efile 1040ez You must use special rules for deducting interest expenses. Free efile 1040ez For more information on allocating and apportioning your deductions, see Publication 514. Free efile 1040ez Exemptions. Free efile 1040ez   Do not take the deduction for exemptions for yourself, your spouse, or your dependents in figuring taxable income for purposes of the limit. Free efile 1040ez Recapture of foreign losses. Free efile 1040ez   If you have an overall foreign loss and the loss reduces your U. Free efile 1040ez S. Free efile 1040ez source income (resulting in a reduction of your U. Free efile 1040ez S. Free efile 1040ez tax liability), you must recapture the loss in later years when you have taxable income from foreign sources. Free efile 1040ez This is done by treating a part of your taxable income from foreign sources in later years as U. Free efile 1040ez S. Free efile 1040ez source income. Free efile 1040ez This reduces the numerator of the limiting fraction and the resulting foreign tax credit limit. Free efile 1040ez Recapture of domestic losses. Free efile 1040ez   If you have an overall domestic loss (resulting in no U. Free efile 1040ez S. Free efile 1040ez tax liability), you cannot claim a foreign tax credit for taxes paid during that year. Free efile 1040ez You must recapture the loss in later years when you have U. Free efile 1040ez S. Free efile 1040ez source taxable income. Free efile 1040ez This is done by treating a part of your taxable income from U. Free efile 1040ez S. Free efile 1040ez sources in later years as foreign source income. Free efile 1040ez This increases the numerator of the limiting fraction and the resulting foreign tax credit limit. Free efile 1040ez Foreign tax credit carryback and carryover. Free efile 1040ez   The amount of foreign income tax not allowed as a credit because of the limit can be carried back 1 year and carried forward 10 years. Free efile 1040ez   More information on figuring the foreign tax credit can be found in Publication 514. Free efile 1040ez Deduction for Foreign Income Taxes Instead of taking the foreign tax credit, you can deduct foreign income taxes as an itemized deduction on Schedule A (Form 1040). Free efile 1040ez You can deduct only foreign income taxes paid on income that is subject to U. Free efile 1040ez S. Free efile 1040ez tax. Free efile 1040ez You cannot deduct foreign taxes paid on earnings you exclude from tax under any of the following. Free efile 1040ez Foreign earned income exclusion. Free efile 1040ez Foreign housing exclusion. Free efile 1040ez Possession exclusion. Free efile 1040ez Example. Free efile 1040ez You are a U. Free efile 1040ez S. Free efile 1040ez citizen and qualify to exclude your foreign earned income. Free efile 1040ez Your excluded wages in Country X are $70,000 on which you paid income tax of $10,000. Free efile 1040ez You received dividends from Country X of $2,000 on which you paid income tax of $600. Free efile 1040ez You can deduct the $600 tax payment because the dividends relating to it are subject to U. Free efile 1040ez S. Free efile 1040ez tax. Free efile 1040ez Because you exclude your wages, you cannot deduct the income tax of $10,000. Free efile 1040ez If you exclude only a part of your wages, see the earlier discussion under Foreign taxes paid on excluded income. Free efile 1040ez Deduction for Other Foreign Taxes You can deduct real property taxes you pay that are imposed on you by a foreign country. Free efile 1040ez You take this deduction on Schedule A (Form 1040). Free efile 1040ez You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Free efile 1040ez On the other hand, you generally can deduct personal property taxes when you pay them to U. Free efile 1040ez S. Free efile 1040ez possessions. Free efile 1040ez But if you claim the possession exclusion, see Publication 570. Free efile 1040ez The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Free efile 1040ez You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes imposed by a foreign country. Free efile 1040ez How To Report Deductions If you exclude foreign earned income or housing amounts, how you show your deductions on your tax return and how you figure the amount allocable to your excluded income depends on whether the expenses are used in figuring adjusted gross income (Form 1040, line 38) or are itemized deductions. Free efile 1040ez If you have deductions used in figuring adjusted gross income, enter the total amount for each of these items on the appropriate lines and schedules of Form 1040. Free efile 1040ez Generally, you figure the amount of a deduction related to the excluded income by multiplying the deduction by a fraction, the numerator of which is your foreign earned income exclusion and the denominator of which is your foreign earned income. Free efile 1040ez Enter the amount of the deduction(s) related to excluded income on line 44 of Form 2555. Free efile 1040ez If you have itemized deductions related to excluded income, enter on Schedule A (Form 1040) only the part not related to excluded income. Free efile 1040ez You figure that amount by subtracting from the total deduction the amount related to excluded income. Free efile 1040ez Generally, you figure the amount that is related to the excluded income by multiplying the total deduction by a fraction, the numerator of which is your foreign earned income exclusion and the denominator of which is your foreign earned income. Free efile 1040ez Attach a statement to your return showing how you figured the deductible amount. Free efile 1040ez Example 1. Free efile 1040ez You are a U. Free efile 1040ez S. Free efile 1040ez citizen employed as an accountant. Free efile 1040ez Your tax home is in Germany for the entire tax year. Free efile 1040ez You meet the physical presence test. Free efile 1040ez Your foreign earned income for the year was $122,000 and your investment income was $10,380. Free efile 1040ez After excluding $97,600, your AGI is $34,780. Free efile 1040ez You had unreimbursed business expenses of $2,500 for travel and entertainment in earning your foreign income, of which $500 was for meals and entertainment. Free efile 1040ez These expenses are deductible only as miscellaneous deductions on Schedule A (Form 1040). Free efile 1040ez You also have $500 of miscellaneous expenses that are not related to your foreign income that you enter on line 23 of Schedule A. Free efile 1040ez You must fill out Form 2106. Free efile 1040ez On that form, reduce your deductible meal and entertainment expenses by 50% ($250). Free efile 1040ez You must reduce the remaining $2,250 of travel and entertainment expenses by 80% ($1,800) because you excluded 80% ($97,600/$122,000) of your foreign earned income. Free efile 1040ez You carry the remaining total of $450 to line 21 of Schedule A. Free efile 1040ez Add the $450 to the $500 that you have on line 23 and enter the total ($950) on line 24. Free efile 1040ez On line 26 of Schedule A, enter $696, which is 2% of your adjusted gross income of $34,780 (line 38, Form 1040) and subtract it from the amount on line 24. Free efile 1040ez Enter $254 on line 27 of Schedule A. Free efile 1040ez Example 2. Free efile 1040ez You are a U. Free efile 1040ez S. Free efile 1040ez citizen, have a tax home in Spain, and meet the physical presence test. Free efile 1040ez You are self-employed and personal services produce the business income. Free efile 1040ez Your gross income was $116,931, business expenses $66,895, and net income (profit) $50,036. Free efile 1040ez You choose the foreign earned income exclusion and exclude $97,600 of your gross income. Free efile 1040ez Since your excluded income is 83. Free efile 1040ez 47% of your total income, 83. Free efile 1040ez 47% of your business expenses are not deductible. Free efile 1040ez Report your total income and expenses on Schedule C (Form 1040). Free efile 1040ez On Form 2555 you will show the following: Line 20a, $116,931, gross income, Lines 42 and 43, $97,600, foreign earned income exclusion, and Line 44, $55,837 (83. Free efile 1040ez 47% × $66,895) business expenses attributable to the exclusion. Free efile 1040ez In this situation (Example 2), you cannot use Form 2555-EZ since you had self-employment income and business expenses. Free efile 1040ez Example 3. Free efile 1040ez Assume in Example 2 that both capital and personal services combine to produce the business income. Free efile 1040ez No more than 30% of your net income, or $15,011, assuming that this amount is a reasonable allowance for your services, is considered earned and can be excluded. Free efile 1040ez Your exclusion of $15,011 is 12. Free efile 1040ez 84% of your gross income ($15,011 ÷ $116,931). Free efile 1040ez Because you excluded 12. Free efile 1040ez 84% of your total income, $8,589 (. Free efile 1040ez 1284 x $66,895) of your business expenses is attributable to the excluded income and is not deductible. Free efile 1040ez Example 4. Free efile 1040ez You are a U. Free efile 1040ez S. Free efile 1040ez citizen, have a tax home in Brazil, and meet the physical presence test. Free efile 1040ez You are self-employed and both capital and personal services combine to produce business income. Free efile 1040ez Your gross income was $146,000, business expenses were $172,000, and your net loss was $26,000. Free efile 1040ez A reasonable allowance for the services you performed for the business is $77,000. Free efile 1040ez Because you incurred a net loss, the earned income limit of 30% of your net profit does not apply. Free efile 1040ez The $77,000 is foreign earned income. Free efile 1040ez If you choose to exclude the $77,000, you exclude 52. Free efile 1040ez 74% of your gross income ($77,000 ÷ $146,000), and 52. Free efile 1040ez 74% of your business expenses ($90,713) is attributable to that income and is not deductible. Free efile 1040ez Show your total income and expenses on Schedule C (Form 1040). Free efile 1040ez On Form 2555, exclude $77,000 and show $90,713 on line 44. Free efile 1040ez Subtract line 44 from line 43, and enter the difference as a negative (in parentheses) on line 45. Free efile 1040ez Because this amount is negative, enter it as a positive (no parentheses) on line 21, Form 1040, and combine it with your other income to arrive at total income on line 22 of Form 1040. Free efile 1040ez In this situation (Example 4), you would probably not want to choose the foreign earned income exclusion if this was the first year you were eligible. Free efile 1040ez If you had chosen the exclusion in an earlier year, you might want to revoke the choice for this year. Free efile 1040ez To do so would mean that you could not claim the exclusion again for the next 5 tax years without IRS approval. Free efile 1040ez See Choosing the Exclusion in chapter 4. Free efile 1040ez Example 5. Free efile 1040ez You are a U. Free efile 1040ez S. Free efile 1040ez citizen, have a tax home in Panama, and meet the bona fide residence test. Free efile 1040ez You have been performing services for clients as a partner in a firm that provides services exclusively in Panama. Free efile 1040ez Capital investment is not material in producing the partnership's income. Free efile 1040ez Under the terms of the partnership agreement, you are to receive 50% of the net profits. Free efile 1040ez The partnership received gross income of $244,000 and incurred operating expenses of $98,250. Free efile 1040ez Of the net profits of $145,750, you received $72,875 as your distributive share. Free efile 1040ez You choose to exclude $97,600 of your share of the gross income. Free efile 1040ez Because you exclude 80% ($97,600 ÷ $122,000) of your share of the gross income, you cannot deduct $39,300, 80% of your share of the operating expenses (. Free efile 1040ez 80 × $49,125). Free efile 1040ez Report $72,875, your distributive share of the partnership net profit, on Schedule E (Form 1040), Supplemental Income and Loss. Free efile 1040ez On Form 2555, show $97,600 on line 42 and show $39,300 on line 44. Free efile 1040ez Your exclusion on Form 2555 is $58,300. Free efile 1040ez In this situation (Example 5), you cannot use Form 2555-EZ since you had earned income other than salaries and wages and you had business expenses. Free efile 1040ez Prev  Up  Next   Home   More Online Publications
Español

Business Resources by Audience

Find resources for corporations, foreign businesses, exporters, nonprofits, small businesses and many more audiences.

The Free Efile 1040ez

Free efile 1040ez Publication 547(SP) - Introductory Material Table of Contents Qué Hay de Nuevo Recordatorios IntroductionCómo pedir formularios y publicaciones. Free efile 1040ez Preguntas sobre los impuestos. Free efile 1040ez Useful Items - You may want to see: Qué Hay de Nuevo Nueva Sección C en el Formulario 4684 para esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Free efile 1040ez  La Sección C del Formulario 4684 (disponible en inglés) es nueva para el año 2013. Free efile 1040ez Usted debe completar la Seción C si está reclamando una deducción de pérdida por robo debido a un esquema de inversión de tipo Ponzi (Ponzi-type scheme) y estará usando el Procedimiento Tributario (Revenue Procedure) 2009-20, según modificado por el Procedimiento Tributario (Revenue Procedure) 2011-58. Free efile 1040ez La Sección C del Formulario 4864 reemplaza el Anexo A del Procedimiento Tributario (Revenue Procedure) 2009-20. Free efile 1040ez No necesita completar el Anexo A. Free efile 1040ez Para más información, vea Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes) , más adelante. Free efile 1040ez Recordatorios Acontecimientos futuros. Free efile 1040ez  Si desea obtener la información más reciente sobre los acontecimientos relacionados con la Publicación 547(SP), tal como legislación promulgada después que ésta fue impresa, acceda a www. Free efile 1040ez irs. Free efile 1040ez gov/Spanish/About-Publication-547(SP). Free efile 1040ez Fotografías de niños desaparecidos. Free efile 1040ez  El Servicio de Impuestos Internos (IRS, por sus siglas en inglés) se enorgullece en colaborar con el Centro Nacional de Niños Desaparecidos y Explotados (National Center for Missing and Exploited Children). Free efile 1040ez En esta publicación, pueden aparecer fotografías de niños desaparecidos que han sido seleccionadas por el Centro. Free efile 1040ez Estas fotografías aparecen en páginas que de otra manera estarían en blanco. Free efile 1040ez Usted puede ayudar a que estos niños regresen a sus hogares si identifica alguno de ellos y llama gratis al 1-800-THE-LOST (1-800-843-5678). Free efile 1040ez Introduction Esta publicación explica el trato tributario de casos de hechos fortuitos, robos y pérdidas de depósitos monetarios. Free efile 1040ez Un hecho fortuito ocurre cuando su propiedad resulta dañada por causa de algún desastre, como por ejemplo, una tormenta, un incendio, un accidente automovilístico u otro suceso de esta índole. Free efile 1040ez Un robo ocurre cuando alguien hurta sus bienes. Free efile 1040ez La pérdida de depósitos monetarios ocurre cuando su institución bancaria se declara insolvente o en quiebra (bancarrota). Free efile 1040ez Esta publicación aborda los siguientes temas: Definiciones de hecho fortuito, robo y pérdida de depósitos monetarios. Free efile 1040ez Cómo calcular el monto de su pérdida o ganancia. Free efile 1040ez Cómo se tratan tributariamente seguros y otros reembolsos que reciba. Free efile 1040ez Límites de la deducción. Free efile 1040ez Cómo y cuándo declarar un caso de hecho fortuito o robo. Free efile 1040ez Reglas especiales para pérdidas en zonas de desastre. Free efile 1040ez Formularios que tiene que presentar. Free efile 1040ez   Normalmente, si es víctima de un hecho fortuito o robo, tiene que presentar el Formulario 4684 (disponible sólo en inglés). Free efile 1040ez Asimismo, es posible que tenga que presentar uno o más de los siguientes formularios (todos en inglés): Anexo A (Formulario 1040). Free efile 1040ez Formulario 1040NR, Anexo A (para extranjeros no residentes). Free efile 1040ez Anexo D. Free efile 1040ez Formulario 4797. Free efile 1040ez Para información adicional sobre qué formulario utilizar, vea más adelante la sección sobre Cómo Declarar Pérdidas y Ganancias . Free efile 1040ez Expropiaciones forzosas. Free efile 1040ez   Para obtener información sobre expropiaciones forzosas de propiedades, vea el tema Involuntary Conversions (Conversiones involuntarias) en el capítulo 1 de la Publicación 544, Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés. Free efile 1040ez Registros para el cálculo de pérdidas por hecho fortuito y robo. Free efile 1040ez   La Publicación 584SP, Registro de Pérdidas por Hechos Fortuitos (Imprevistos), Desastres y Robos (Propiedad de uso Personal) está a su disposición para ayudarle a hacer una lista de artículos de sus bienes de uso personal que hayan sido robados o dañados y calcular su pérdida. Free efile 1040ez En dicha publicación se incluyen tablas para ayudarle a calcular el monto de las pérdidas de su vivienda, artículos de la misma y vehículos motorizados. Free efile 1040ez   La Publicación 584-B, Business Casualty, Disaster, and Theft Loss Workbook (Registro de pérdidas por hechos fortuitos, desastres y robos de propiedad de uso comercial), en inglés puede ayudarle a hacer una lista de artículos que hayan sido robados o dañados en su empresa o bienes de generación de ingresos, y calcular su pérdida. Free efile 1040ez Comentarios y sugerencias. Free efile 1040ez   Agradecemos sus comentarios y sugerencias sobre esta publicación para ediciones futuras. Free efile 1040ez   Puede escribirnos a la siguiente dirección: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free efile 1040ez NW, IR-6526 Washington, DC 20224   Contestamos gran parte de correspondencia por teléfono. Free efile 1040ez Por lo tanto, nos sería útil si en su correspondencia incluye el número telefónico con su código de área donde podemos ubicarlo durante el día. Free efile 1040ez   Puede enviarnos comentarios a través de www. Free efile 1040ez irs. Free efile 1040ez gov/formspubs, pulsando sobre “ Comment on Tax Forms and Publications ” (Comentarios sobre formularios y publicaciones tributarios) bajo el título “ Information about ” (Información sobre), en inglés. Free efile 1040ez   Aunque no podemos contestar cada uno de los comentarios, agradecemos su opinión y tendremos en cuenta sus comentarios cuando revisemos nuestros productos. Free efile 1040ez Cómo pedir formularios y publicaciones. Free efile 1040ez   Visite el sitio web del IRS www. Free efile 1040ez irs. Free efile 1040ez gov/espanol y pulse sobre el enlace “Formularios y Publicaciones” para descargar formularios y publicaciones. Free efile 1040ez Llame al 1-800-829-3676 o escriba a la dirección que aparece a continuación y recibirá respuesta a los 10 días de que el IRS reciba su solicitud: Internal Revenue Service 1201 N. Free efile 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 Preguntas sobre los impuestos. Free efile 1040ez   Si tiene alguna pregunta acerca de sus impuestos, consulte la información disponible en IRS. Free efile 1040ez gov/espanol o llame al número 1-800-829-1040. Free efile 1040ez No podemos contestar preguntas sobre impuestos enviadas a las direcciones anteriores. Free efile 1040ez Useful Items - You may want to see: Publicación 523 Selling Your Home (Venta de su vivienda), en inglés 525 Taxable and Nontaxable Income (Ingresos tributables y no tributables), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversiones), en inglés 551 Basis of Assets (Base de activos), en inglés 584SP Registro de Pérdidas por Hechos Fortuitos (Imprevistos), Desastres y Robos (Propiedad de Uso Personal) 584-B Business Casualty, Disaster, and Theft Loss Workbook (Registro de pérdidas por hechos fortuitos, desastres y robos comerciales), en inglés  Formulario (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés Anexo A (Formulario 1040NR) Itemized Deductions (for nonresident aliens) (Deducciones detalladas (para extranjeros no residentes)), en inglés Anexo D (Formulario 1040) Capital Gains and Losses (Pérdidas y ganancias de capital), en inglés 4684 Casualties and Thefts (Hechos fortuitos y robos), en inglés 4797 Sales of Business Property (Ventas de bienes comerciales), en inglés  Para más información sobre cómo obtener publicaciones y formularios, vea la sección Cómo Obtener Ayuda con los Impuestos al final de esta publicación. Free efile 1040ez Prev  Up  Next   Home   More Online Publications