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Free federal tax return 3. Free federal tax return   Filing Information for Individuals in Certain U. Free federal tax return S. Free federal tax return Possessions Table of Contents American SamoaWhere To Get Forms and Information Which Returns To File Special Rules for American Samoa Double Taxation The Commonwealth of Puerto RicoWhere To Get Forms and Information Which Returns To File Special Rules for Puerto Rico Double Taxation The Commonwealth of the Northern Mariana IslandsWhere To Get Forms and Information Which Return To File Special Rules for the CNMI Double Taxation GuamWhere To Get Forms and Information Which Return To File Special Rules for Guam Double Taxation The U. Free federal tax return S. Free federal tax return Virgin IslandsWhere To Get Forms and Information Which Return To File Special Rules for the USVI Double Taxation If you have income from American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, you may have to file a tax return with the tax department of that possession. Free federal tax return Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. Free federal tax return S. Free federal tax return Internal Revenue Service. Free federal tax return This chapter covers the general rules for filing returns in the five possessions. Free federal tax return You must first determine if you are a bona fide resident of the relevant possession. Free federal tax return See chapter 1 for a discussion of the requirements you must meet. Free federal tax return You should ask for forms and advice about the filing of possession tax returns from that possession's tax department, not the Internal Revenue Service. Free federal tax return Contact information is listed in this chapter under the heading for each possession. Free federal tax return American Samoa American Samoa has its own separate and independent tax system. Free federal tax return Although its tax laws are modeled on the U. Free federal tax return S. Free federal tax return Internal Revenue Code, there are certain differences. Free federal tax return Where To Get Forms and Information Requests for advice about matters connected with Samoan taxation should be sent to: American Samoa Government Tax Office  Executive Office Building First Floor Pago Pago, AS 96799 The phone number is (684) 633-4181. Free federal tax return The fax number is (684) 633-1513. Free federal tax return You can get forms and publications at www. Free federal tax return americansamoa. Free federal tax return gov. Free federal tax return The addresses and phone numbers listed above are subject to change. Free federal tax return Which Returns To File Your residency status and your source of income with regard to American Samoa determine whether you file your return and pay your tax to American Samoa, to the United States, or to both. Free federal tax return In addition to the information below that is categorized by residency status, the Special Rules for American Samoa section (later) contains important information for determining the correct forms to file. Free federal tax return Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. Free federal tax return S. Free federal tax return tax on their American Samoa source income. Free federal tax return U. Free federal tax return S. Free federal tax return citizen or resident alien. Free federal tax return   If you are a U. Free federal tax return S. Free federal tax return citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. Free federal tax return An American Samoa tax return reporting your gross income from worldwide sources. Free federal tax return If you report non-American Samoa source income on your American Samoa tax return, you can claim a credit against your American Samoa tax liability for income taxes paid on that income to the United States, a foreign country, or another possession. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. Free federal tax return However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. Free federal tax return S. Free federal tax return Government employees under Special Rules for American Samoa, later). Free federal tax return To exclude American Samoa source income, attach a completed Form 4563 to your U. Free federal tax return S. Free federal tax return tax return (see Form 4563 for more information). Free federal tax return If you are excluding American Samoa source income on your U. Free federal tax return S. Free federal tax return tax return, you will not be allowed any deductions from gross income or credits against tax that are directly or indirectly allocable to the exempt income. Free federal tax return For more information, see Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return Nonresident alien. Free federal tax return   If you are a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. Free federal tax return An American Samoa tax return reporting worldwide income. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040, U. Free federal tax return S. Free federal tax return Individual Income Tax Return) reporting income from worldwide sources, but excluding American Samoa source income other than amounts for services performed as an employee of the United States or any of its agencies. Free federal tax return For more information, see U. Free federal tax return S. Free federal tax return Government employees under Special Rules for American Samoa, later. Free federal tax return To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. Free federal tax return S. Free federal tax return tax return (see Form 4563 , below, for more information). Free federal tax return For all other tax purposes, however, you will be treated as a nonresident alien individual. Free federal tax return For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Free federal tax return There are also limitations on what deductions and credits are allowed. Free federal tax return See Publication 519 for more information. Free federal tax return Form 4563. Free federal tax return   If you must file a U. Free federal tax return S. Free federal tax return income tax return and you qualify to exclude any of your income from American Samoa, claim the exclusion by completing Form 4563 and attaching it to your Form 1040. Free federal tax return Form 4563 cannot be filed by itself. Free federal tax return There is an example of a filled-in Form 4563 in chapter 5. Free federal tax return   If you are a bona fide resident of American Samoa during the entire tax year and you are not including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 4563) to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 4563) to: Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. Free federal tax return Self-employment tax. Free federal tax return   If you are not required to file a U. Free federal tax return S. Free federal tax return tax return but have income that is effectively connected with a trade or business in American Samoa, you must file Form 1040-SS with the United States. Free federal tax return On this form you will report your self-employment income to the United States and, if necessary, pay self-employment tax on that income. Free federal tax return Additional Medicare Tax. Free federal tax return   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free federal tax return Also, you may need to report Additional Medicare Tax withheld by your employer. Free federal tax return For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return Net Investment Income Tax. Free federal tax return   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Free federal tax return 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Free federal tax return The NIIT will apply to a bona fide resident of American Samoa if a taxpayer has modified adjusted gross income from sources outside of American Samoa that exceeds a specified threshold amount, e. Free federal tax return g. Free federal tax return , $200,000 for single filers. Free federal tax return The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Free federal tax return See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Free federal tax return Estimated tax payments. Free federal tax return   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES, Estimated Tax for Individuals. Free federal tax return   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free federal tax return irs. Free federal tax return gov/e-pay. Free federal tax return   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. Free federal tax return Not a Bona Fide Resident of American Samoa An individual who is not a bona fide resident of American Samoa for the tax year generally files both U. Free federal tax return S. Free federal tax return and American Samoa tax returns, and claims a foreign tax credit on the U. Free federal tax return S. Free federal tax return return for taxes paid to American Samoa. Free federal tax return U. Free federal tax return S. Free federal tax return citizen or resident alien. Free federal tax return   If you are a U. Free federal tax return S. Free federal tax return citizen or resident alien but not a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. Free federal tax return An American Samoa tax return reporting only your income from sources within American Samoa. Free federal tax return Wages for services performed in American Samoa, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from sources within American Samoa. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return reporting your income from worldwide sources. Free federal tax return You can take a credit against your U. Free federal tax return S. Free federal tax return tax liability if you paid income taxes to American Samoa (or other possession or foreign country) and reported income from those sources on your U. Free federal tax return S. Free federal tax return tax return. Free federal tax return De minimis exception to determining source of income. Free federal tax return   In certain situations you will not have income from a possession. Free federal tax return See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free federal tax return Nonresident alien. Free federal tax return   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of American Samoa for the entire tax year, you generally must file the following returns. Free federal tax return An American Samoa tax return reporting only your income from sources within American Samoa. Free federal tax return In this situation, wages for services performed in American Samoa, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from sources within American Samoa. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040NR, U. Free federal tax return S. Free federal tax return Nonresident Alien Income Tax Return) reporting U. Free federal tax return S. Free federal tax return source income according to the rules for a nonresident alien. Free federal tax return See the Instructions for Form 1040NR. Free federal tax return   If you are not a bona fide resident of American Samoa during the entire tax year, and you are not including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to: Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. Free federal tax return Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. Free federal tax return U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. Free federal tax return Civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces ), your tax residence is American Samoa, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. Free federal tax return However, if your tax residence is one of the 50 states or the District of Columbia and your only income from American Samoa is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free federal tax return S. Free federal tax return tax return (Form 1040) and a state and/or local tax return, if required. Free federal tax return If you have income from American Samoa other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), contact the local tax administration for guidance. Free federal tax return U. Free federal tax return S. Free federal tax return Government employees. Free federal tax return   If you are employed in American Samoa by the U. Free federal tax return S. Free federal tax return Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. Free federal tax return Whether you are subject to tax by American Samoa on your non-American Samoa source income depends on your status in American Samoa as a bona fide resident. Free federal tax return   Wages and salaries paid to employees of the U. Free federal tax return S. Free federal tax return Government and its agencies are also subject to U. Free federal tax return S. Free federal tax return federal income tax. Free federal tax return These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. Free federal tax return   For tax years ending after April 9, 2008, wages and salaries paid to bona fide residents by the Government of American Samoa can be excluded on the U. Free federal tax return S. Free federal tax return tax return. Free federal tax return   If you report government wages on both your U. Free federal tax return S. Free federal tax return and American Samoa tax returns, you can take a credit on your U. Free federal tax return S. Free federal tax return tax return for income taxes paid or accrued to American Samoa. Free federal tax return Figure the credit on Form 1116, and attach that form to your U. Free federal tax return S. Free federal tax return tax return, Form 1040. Free federal tax return Show your wages paid for services performed in American Samoa on Form 1116, line 1a, enter “American Samoa” on line g, and check box b above Part I. Free federal tax return Moving expense deduction. Free federal tax return   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. Free federal tax return Likewise, the expenses of a move back to the United States are generally attributable to U. Free federal tax return S. Free federal tax return earned income. Free federal tax return   If your move was to American Samoa, report your deduction for moving expenses as follows. Free federal tax return If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your American Samoa tax return. Free federal tax return If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. Free federal tax return S. Free federal tax return tax returns. Free federal tax return Also, for purposes of a tax credit against your U. Free federal tax return S. Free federal tax return tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Free federal tax return   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. Free federal tax return Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. Free federal tax return See Double Taxation in chapter 4. Free federal tax return The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. Free federal tax return Although it is modeled after the U. Free federal tax return S. Free federal tax return system, there are differences in law and tax rates. Free federal tax return Where To Get Forms and Information Requests for information about the filing of Puerto Rico tax returns should be addressed to: Departamento de Hacienda Negociado de Asistencia Contributiva  P. Free federal tax return O. Free federal tax return Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. Free federal tax return    To obtain Puerto Rico tax forms, contact the Forms and Publications Division Office at the above address or call (787) 722-0216, option #7. Free federal tax return You can access the Hacienda website at www. Free federal tax return hacienda. Free federal tax return gobierno. Free federal tax return pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. Free federal tax return gobierno. Free federal tax return pr. Free federal tax return The addresses and phone numbers listed above are subject to change. Free federal tax return Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. Free federal tax return The income reported on each return depends on your residency status in Puerto Rico. Free federal tax return To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. Free federal tax return Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. Free federal tax return U. Free federal tax return S. Free federal tax return citizen or resident alien. Free federal tax return   If you are a U. Free federal tax return S. Free federal tax return citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. Free federal tax return A Puerto Rico tax return reporting income from worldwide sources. Free federal tax return If you report U. Free federal tax return S. Free federal tax return source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return reporting income from worldwide sources, but excluding Puerto Rico source income. Free federal tax return However, see U. Free federal tax return S. Free federal tax return Government employees under Special Rules for Puerto Rico, later, for an exception. Free federal tax return If you are excluding Puerto Rico income on your U. Free federal tax return S. Free federal tax return tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. Free federal tax return For more information, see Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return If all of your income is from Puerto Rico sources, you are not required to file a U. Free federal tax return S. Free federal tax return tax return. Free federal tax return However, if you have self-employment income, see Self-employment tax , later. Free federal tax return U. Free federal tax return S. Free federal tax return citizen only. Free federal tax return   If you are a U. Free federal tax return S. Free federal tax return citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. Free federal tax return In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U. Free federal tax return S. Free federal tax return Government or its agencies) that you earned before the date you changed your residence. Free federal tax return For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. Free federal tax return Nonresident alien. Free federal tax return   If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. Free federal tax return A Puerto Rico tax return reporting income from worldwide sources. Free federal tax return If you report U. Free federal tax return S. Free federal tax return source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rico source income (other than amounts for services performed as an employee of the United States or any of its agencies). Free federal tax return For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. Free federal tax return For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Free federal tax return There are also limitations on what deductions and credits are allowed. Free federal tax return See Publication 519 for more information. Free federal tax return Self-employment tax. Free federal tax return   If you have no U. Free federal tax return S. Free federal tax return filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free federal tax return Additional Medicare Tax. Free federal tax return   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free federal tax return Also, you may need to report Additional Medicare Tax withheld by your employer. Free federal tax return For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return Net Investment Income Tax. Free federal tax return   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Free federal tax return 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Free federal tax return The NIIT will apply to a bona fide resident of Puerto Rico if a taxpayer has modified adjusted gross income from sources outside of Puerto Rico that exceeds a specified threshold amount, e. Free federal tax return g. Free federal tax return , $200,000 for single filers. Free federal tax return The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Free federal tax return See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Free federal tax return Estimated tax payments. Free federal tax return   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES (or Form 1040-ES(PR)). Free federal tax return   To pay by check or money order, send your payment with the Form 1040-ES (or Form 1040-ES(PR)) payment voucher to: Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free federal tax return irs. Free federal tax return gov/e-pay. Free federal tax return   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. Free federal tax return Not a Bona Fide Resident of Puerto Rico An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States. Free federal tax return U. Free federal tax return S. Free federal tax return citizen or resident alien. Free federal tax return   If you are a U. Free federal tax return S. Free federal tax return citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. Free federal tax return A Puerto Rico tax return reporting only your income from Puerto Rico sources. Free federal tax return Wages for services performed in Puerto Rico, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from Puerto Rico sources. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return reporting income from worldwide sources. Free federal tax return Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is not exempt from U. Free federal tax return S. Free federal tax return taxes (see chapter 4 for more information). Free federal tax return Nonresident alien. Free federal tax return   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns. Free federal tax return A Puerto Rico tax return reporting only your income from Puerto Rico sources. Free federal tax return Wages for services performed in Puerto Rico, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from Puerto Rico sources. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040NR) according to the rules for a nonresident alien. Free federal tax return See the Instructions for Form 1040NR. Free federal tax return De minimis exception to determining source of income. Free federal tax return   In certain situations you will not have income from a possession. Free federal tax return See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free federal tax return Use the addresses listed below to file your U. Free federal tax return S. Free federal tax return and Puerto Rico income tax returns. Free federal tax return If you are not including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to: Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA If you request a refund on your Puerto Rico return, send your Puerto Rico tax return and all attachments to: Departamento de Hacienda P. Free federal tax return O. Free federal tax return Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. Free federal tax return O. Free federal tax return Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. Free federal tax return S. Free federal tax return and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. Free federal tax return U. Free federal tax return S. Free federal tax return Government employees. Free federal tax return   Wages and cost-of-living allowances paid by the U. Free federal tax return S. Free federal tax return Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. Free federal tax return However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. Free federal tax return S. Free federal tax return tax. Free federal tax return In order to claim this exclusion, you must: Include with your Puerto Rico tax return evidence to show the amount received during the year, and Be in full compliance with your Puerto Rico tax responsibilities. Free federal tax return   These wages are also subject to U. Free federal tax return S. Free federal tax return tax, but the cost-of-living allowances are excludable. Free federal tax return A foreign tax credit is available in order to avoid double taxation. Free federal tax return U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. Free federal tax return Civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces ), your tax residence is Puerto Rico, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. Free federal tax return However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Puerto Rico is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free federal tax return S. Free federal tax return tax return (Form 1040) and a state and/or local tax return, if required. Free federal tax return If you have income from Puerto Rico other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1 ), contact the Hacienda for guidance. Free federal tax return Income from sources outside Puerto Rico and the United States. Free federal tax return   If you are a U. Free federal tax return S. Free federal tax return citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. Free federal tax return In addition to your Puerto Rico and U. Free federal tax return S. Free federal tax return tax returns, you may also have to file a return with the country or possession from which your outside income was derived. Free federal tax return To avoid double taxation, a foreign tax credit is generally available for either the U. Free federal tax return S. Free federal tax return or Puerto Rico return. Free federal tax return Example. Free federal tax return Thomas Red is a bona fide resident of Puerto Rico and a U. Free federal tax return S. Free federal tax return citizen. Free federal tax return He traveled to the Dominican Republic and worked in the construction industry for 1 month. Free federal tax return His wages were $20,000. Free federal tax return Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. Free federal tax return He may also have to file a tax return with the Dominican Republic. Free federal tax return Moving expense deduction. Free federal tax return   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. Free federal tax return Likewise, the expenses of a move back to the United States are generally attributable to U. Free federal tax return S. Free federal tax return earned income. Free federal tax return   If your move was to Puerto Rico, report your deduction for moving expenses as follows. Free federal tax return If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rico tax return. Free federal tax return If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. Free federal tax return S. Free federal tax return tax returns. Free federal tax return Also, for purposes of a tax credit against your U. Free federal tax return S. Free federal tax return tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Free federal tax return   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free federal tax return Additional child tax credit. Free federal tax return   If you are not required to file a U. Free federal tax return S. Free federal tax return income tax return, this credit is available only if you meet all three of the following conditions. Free federal tax return You were a bona fide resident of Puerto Rico during the entire tax year. Free federal tax return Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. Free federal tax return You had three or more qualifying children. Free federal tax return (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. Free federal tax return ) If your income exceeds certain levels, you may be disqualified from receiving this credit. Free federal tax return Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. Free federal tax return Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. Free federal tax return Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. Free federal tax return See Double Taxation in chapter 4. Free federal tax return The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its own tax system based partly on the same tax laws and tax rates that apply to the United States and partly on local taxes imposed by the CNMI government. Free federal tax return Where To Get Forms and Information Requests for advice about CNMI residency and tax matters should be addressed to: Commonwealth of the Northern Mariana Islands  Division of Revenue and Taxation P. Free federal tax return O. Free federal tax return Box 5234 CHRB Dandan Commercial Center First Floor Rm #8  Saipan, MP 96950 You can order forms and publications by calling (670) 664-1000. Free federal tax return You can order forms and publications through the fax at (670) 664-1015. Free federal tax return You can get forms and publications at www. Free federal tax return cnmidof. Free federal tax return net. Free federal tax return The addresses and phone numbers listed above are subject to change. Free federal tax return Which Return To File In general, all individuals with income from the CNMI will file only one return, either to the CNMI or to the United States. Free federal tax return Your residency status with regard to the CNMI determines which return you will file. Free federal tax return Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. Free federal tax return Bona Fide Resident of the CNMI If you are a U. Free federal tax return S. Free federal tax return citizen, resident alien, or nonresident alien and a bona fide resident of the CNMI during the entire tax year, file your income tax return with the CNMI. Free federal tax return Include income from worldwide sources on your CNMI return. Free federal tax return In determining your total tax payments, include all income tax withheld by either the CNMI or the United States, any credit for an overpayment of income tax to either the CNMI or the United States, and any payments of estimated tax to either the CNMI or the United States. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return Generally, if you properly file your return with, and fully pay your income tax to, the CNMI, then you are not liable for filing an income tax return with, or for paying tax to, the United States for the tax year. Free federal tax return However, if you were self-employed in 2013, see Self-employment tax , later. Free federal tax return Example. Free federal tax return David Gold was a bona fide resident of the CNMI for 2013. Free federal tax return He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. Free federal tax return S. Free federal tax return corporations that carry on business mainly in the United States. Free federal tax return He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. Free federal tax return He reports his total income of $34,000 on the CNMI return. Free federal tax return   If you are a bona fide resident of the CNMI for the entire tax year, send your return and all attachments to the Division of Revenue and Taxation at the address given earlier. Free federal tax return U. Free federal tax return S. Free federal tax return Citizen or Resident Alien (Other Than a Bona Fide Resident of the CNMI) If you have income from sources within the CNMI and are a U. Free federal tax return S. Free federal tax return citizen or resident alien, but you are not a bona fide resident of the CNMI during the entire tax year, file your income tax return with the United States. Free federal tax return Include income from worldwide sources on your U. Free federal tax return S. Free federal tax return return. Free federal tax return In determining your total tax payments, include all income tax withheld by either the United States or the CNMI, any credit for an overpayment of income tax to either the United States or the CNMI, and any payments of estimated tax to either the United States or the CNMI. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return Note. Free federal tax return You may also need to complete Form 5074. Free federal tax return You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. Free federal tax return Form 5074. Free federal tax return   If you file a U. Free federal tax return S. Free federal tax return income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within the CNMI. Free federal tax return   The United States and the CNMI use this form to divide your income taxes. Free federal tax return   There is an example of a filled-in Form 5074 in chapter 5. Free federal tax return De minimis exception to determining source of income. Free federal tax return   In certain situations you will not have income from a possession. Free federal tax return See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free federal tax return Citizen or resident alien of the United States but not a bona fide resident of the CNMI. Free federal tax return   If you are a citizen or resident alien of the United States but not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to: Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the CNMI for the entire tax year, you generally must file the following returns. Free federal tax return A CNMI tax return reporting only your income from sources within the CNMI. Free federal tax return In this situation, wages for services performed in the CNMI, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from sources within the CNMI. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040NR) reporting U. Free federal tax return S. Free federal tax return source income according to the rules for a nonresident alien. Free federal tax return See the instructions for Form 1040NR. Free federal tax return If you are not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to:  Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA Send your CNMI tax return and all attachments to:  Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free federal tax return O. Free federal tax return Box 5234 CHRB Saipan, MP 96950 Citizen of the CNMI If you are a citizen of the CNMI (meaning that you were born or naturalized in the CNMI) but not otherwise a U. Free federal tax return S. Free federal tax return citizen or a U. Free federal tax return S. Free federal tax return resident alien during the tax year, file your income tax return with the CNMI. Free federal tax return Include income from worldwide sources on your CNMI return. Free federal tax return Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free federal tax return O. Free federal tax return Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. Free federal tax return Joint return. Free federal tax return   If you file a joint return, file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Free federal tax return If the spouse with the greater AGI is a bona fide resident of the CNMI during the entire tax year, file the joint return with the CNMI. Free federal tax return If the spouse with the greater AGI is a U. Free federal tax return S. Free federal tax return citizen or resident alien but not a bona fide resident of the CNMI during the entire tax year, file your joint return with the United States. Free federal tax return For this purpose, income is determined without regard to community property laws. Free federal tax return Example. Free federal tax return Marsha Blue, a U. Free federal tax return S. Free federal tax return citizen, was a resident of the United States, and her spouse, a citizen of the CNMI, was a bona fide resident of the CNMI during the entire tax year. Free federal tax return Marsha earned $65,000 as a computer programmer in the United States. Free federal tax return Her spouse earned $20,000 as an artist in the CNMI. Free federal tax return Marsha and her spouse will file a joint return. Free federal tax return Because Marsha has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. Free federal tax return U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If you are a member of the U. Free federal tax return S. Free federal tax return Armed Forces who qualified as a bona fide resident of the CNMI in a prior tax year, your absence from the CNMI solely in compliance with military orders will not change your bona fide residency. Free federal tax return If you did not qualify as a bona fide resident of the CNMI in a prior tax year, your presence in the CNMI solely in compliance with military orders will not qualify you as a bona fide resident of the CNMI. Free federal tax return Civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces ), your tax residence is the CNMI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free federal tax return However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the CNMI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free federal tax return S. Free federal tax return tax return (Form 1040) and a state and/or local tax return, if required. Free federal tax return If you have income from the CNMI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. Free federal tax return S. Free federal tax return tax return. Free federal tax return Moving expense deduction. Free federal tax return   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. Free federal tax return Likewise, the expenses of a move back to the United States are generally attributable to U. Free federal tax return S. Free federal tax return earned income. Free federal tax return   If your move was to the CNMI, report your deduction for moving expenses as follows. Free federal tax return If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. Free federal tax return If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. Free federal tax return   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free federal tax return Foreign tax credit. Free federal tax return   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. Free federal tax return S. Free federal tax return income tax return for tax paid to the CNMI. Free federal tax return Self-employment tax. Free federal tax return   If you have no U. Free federal tax return S. Free federal tax return filing requirement, but have income that is effectively connected with a trade or business in the CNMI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free federal tax return Additional Medicare Tax. Free federal tax return   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free federal tax return Also, you may need to report Additional Medicare Tax withheld by your employer. Free federal tax return For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return Estimated tax payments. Free federal tax return   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax to the IRS, get Form 1040-ES. Free federal tax return Payment of estimated tax. Free federal tax return   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. Free federal tax return Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. Free federal tax return However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Free federal tax return   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). Free federal tax return For this purpose, income is determined without regard to community property laws. Free federal tax return Early payment. Free federal tax return   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Free federal tax return If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. Free federal tax return   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free federal tax return irs. Free federal tax return gov/e-pay. Free federal tax return   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. Free federal tax return Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. Free federal tax return See Double Taxation in chapter 4. Free federal tax return Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. Free federal tax return Where To Get Forms and Information Requests for advice about Guam residency and tax matters should be addressed to: Department of Revenue and Taxation Government of Guam P. Free federal tax return O. Free federal tax return Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. Free federal tax return You can order forms and publications through the fax at (671) 633-2643. Free federal tax return You can get forms and publications at www. Free federal tax return guamtax. Free federal tax return com. Free federal tax return The addresses and phone numbers listed above are subject to change. Free federal tax return Which Return To File Bona fide residents of Guam are subject to special U. Free federal tax return S. Free federal tax return tax rules. Free federal tax return In general, all individuals with income from Guam will file only one return—either to Guam or the United States. Free federal tax return Bona Fide Resident of Guam If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. Free federal tax return This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. Free federal tax return Include income from worldwide sources on your Guam return. Free federal tax return In determining your total tax payments, include all income tax withheld by either Guam or the United States, any credit for an overpayment of income tax to either Guam or the United States, and any payments of estimated tax to either Guam or the United States. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return Generally, if you properly file your return with, and fully pay your income tax to, Guam, then you are not liable for filing an income tax return with, or for paying tax to, the United States. Free federal tax return However, if you were self-employed in 2013, see Self-employment tax , later. Free federal tax return Example. Free federal tax return Gary Barker was a bona fide resident of Guam for 2013. Free federal tax return He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. Free federal tax return S. Free federal tax return corporations that carry on business mainly in the United States. Free federal tax return He must file a 2013 income tax return with the Government of Guam. Free federal tax return He reports his total income of $27,000 on the Guam return. Free federal tax return If you are a bona fide resident of Guam for the entire tax year, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Free federal tax return O. Free federal tax return Box 23607 GMF, GU 96921 U. Free federal tax return S. Free federal tax return Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) If you have income from sources within Guam and are a U. Free federal tax return S. Free federal tax return citizen or resident alien, but you are not a bona fide resident of Guam during the entire tax year, file your income tax return with the United States. Free federal tax return Include income from worldwide sources on your U. Free federal tax return S. Free federal tax return return. Free federal tax return In determining your total tax payments, include all income tax withheld by either the United States or Guam, any credit for an overpayment of income tax to either the United States or Guam, and any payments of estimated tax to either the United States or Guam. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return You may also need to complete Form 5074. Free federal tax return You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. Free federal tax return Form 5074. Free federal tax return   If you file a U. Free federal tax return S. Free federal tax return income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within Guam. Free federal tax return   The United States and Guam use this form to divide your income taxes. Free federal tax return   See the Illustrated Example of Form 5074 in chapter 5. Free federal tax return De minimis exception to determining source of income. Free federal tax return   In certain situations you will not have income from a possession. Free federal tax return See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free federal tax return   If you are a citizen or resident alien of the United States but not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 5074) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of Guam) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Guam for the entire tax year, you generally must file the following returns. Free federal tax return A Guam tax return reporting only your income from sources within Guam. Free federal tax return In this situation, wages for services performed in Guam, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from sources within Guam. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040NR) reporting U. Free federal tax return S. Free federal tax return source income according to the rules for a nonresident alien. Free federal tax return See the instructions for Form 1040NR. Free federal tax return If you are not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments to:  Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. Free federal tax return O. Free federal tax return Box 23607 GMF, GU 96921 Citizen of Guam If you are a citizen of Guam (meaning that you were born or naturalized in Guam) but not otherwise a U. Free federal tax return S. Free federal tax return citizen or a U. Free federal tax return S. Free federal tax return resident alien during the tax year, file your income tax return with Guam. Free federal tax return Include income from worldwide sources on your Guam return. Free federal tax return Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Free federal tax return O. Free federal tax return Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. Free federal tax return Joint return. Free federal tax return   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Free federal tax return If the spouse with the greater AGI is a bona fide resident of Guam during the entire tax year, file the joint return with Guam. Free federal tax return If the spouse with the greater AGI is a U. Free federal tax return S. Free federal tax return citizen or resident alien but not a bona fide resident of Guam during the entire tax year, file the joint return with the United States. Free federal tax return For this purpose, income is determined without regard to community property laws. Free federal tax return Example. Free federal tax return Bill Whiting, a U. Free federal tax return S. Free federal tax return citizen, was a resident of the United States, and his spouse, a citizen of Guam, was a bona fide resident of Guam during the entire tax year. Free federal tax return Bill earned $45,000 as an engineer in the United States. Free federal tax return His spouse earned $15,000 as a teacher in Guam. Free federal tax return Bill and his spouse will file a joint return. Free federal tax return Because Bill has the greater AGI, he and his spouse must file their return with the United States and report the entire $60,000 on that return. Free federal tax return U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If you are a member of the U. Free federal tax return S. Free federal tax return Armed Forces who qualified as a bona fide resident of Guam in a prior tax year, your absence from Guam solely in compliance with military orders will not change your bona fide residency. Free federal tax return If you did not qualify as a bona fide resident of Guam in a prior tax year, your presence in Guam solely in compliance with military orders will not qualify you as a bona fide resident of Guam. Free federal tax return Civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free federal tax return However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Guam is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free federal tax return S. Free federal tax return tax return (Form 1040) and a state and/or local tax return, if required. Free federal tax return If you have income from Guam other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. Free federal tax return S. Free federal tax return tax return. Free federal tax return Moving expense deduction. Free federal tax return   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. Free federal tax return Likewise, the expenses of a move back to the United States are generally attributable to U. Free federal tax return S. Free federal tax return earned income. Free federal tax return   If your move was to Guam, report your deduction for moving expenses as follows. Free federal tax return If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. Free federal tax return If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. Free federal tax return   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free federal tax return Foreign tax credit. Free federal tax return   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. Free federal tax return S. Free federal tax return income tax return for tax paid to Guam. Free federal tax return Self-employment tax. Free federal tax return   If you have no U. Free federal tax return S. Free federal tax return filing requirement, but have income that is effectively connected with a trade or business in Guam, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free federal tax return Additional Medicare Tax. Free federal tax return   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free federal tax return Also, you may need to report Additional Medicare Tax withheld by your employer. Free federal tax return For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return Estimated tax payments. Free federal tax return   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. Free federal tax return Payment of estimated tax. Free federal tax return   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. Free federal tax return Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. Free federal tax return However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Free federal tax return   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). Free federal tax return For this purpose, income is determined without regard to community property laws. Free federal tax return Early payment. Free federal tax return   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Free federal tax return If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. Free federal tax return   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Department of Revenue and Taxation Government of Guam P. Free federal tax return O. Free federal tax return Box 23607 GMF, GU 96921   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free federal tax return irs. Free federal tax return gov/e-pay. Free federal tax return   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. 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Free federal tax return Virgin Islands tax return or about Form 1040INFO, in St. Free federal tax return Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. Free federal tax return Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. Free federal tax return You can order forms and publications through the fax at (340) 774-2672. Free federal tax return For information about filing your U. Free federal tax return S. Free federal tax return Virgin Islands tax return or about Form 1040INFO, in St. Free federal tax return Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. Free federal tax return I. Free federal tax return 00820–4421 You can order forms and publications by calling (340) 773-1040. Free federal tax return You can order forms and publications through the fax at (340) 773-1006. Free federal tax return You can access the USVI website at www. Free federal tax return viirb. Free federal tax return com. Free federal tax return The addresses and phone numbers listed above are subject to change. Free federal tax return Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. Free federal tax return U. Free federal tax return S. Free federal tax return citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of the tax to each jurisdiction. Free federal tax return Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. Free federal tax return S. Free federal tax return citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. Free federal tax return Include your worldwide income on your USVI return. Free federal tax return In determining your total tax payments, take into account all income tax withheld by either the USVI or the United States, any credit for an overpayment of income tax to either the USVI or the United States, and any payments of estimated tax to either the USVI or the United States. Free federal tax return Pay any balance of tax due with your tax return. Free federal tax return Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. Free federal tax return S. Free federal tax return income tax. Free federal tax return You generally do not have to file with the United States for any tax year in which you are a bona fide resident of the USVI during the entire tax year, provided you report and pay tax on your income from all sources to the USVI and identify the source(s) of the income on the return. Free federal tax return However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. Free federal tax return For more information, see Self-employment tax under Special Rules for the USVI, later. Free federal tax return Form 1040INFO. Free federal tax return   If you are a bona fide resident of the USVI and have non-USVI source income, you must also file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands Bureau of Internal Revenue. Free federal tax return Attach Form 1040INFO to your USVI tax return before filing. Free federal tax return You can get Form 1040INFO by contacting the address or website given earlier. Free federal tax return   If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Free federal tax return Thomas, VI 00802 U. Free federal tax return S. Free federal tax return Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. Free federal tax return S. Free federal tax return citizen or resident alien but not a bona fide resident of the USVI during the entire tax year, you must file your original Form 1040 with the United States and an identical copy of that return with the USVI if you have: Income from sources in the USVI, or Income effectively connected with the conduct of a trade or business in the USVI. Free federal tax return File your original Form 1040 with the United States and file a signed copy of the U. Free federal tax return S. Free federal tax return return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. Free federal tax return Use Form 8689 to figure the amount of tax you must pay to the USVI. Free federal tax return Form 8689. Free federal tax return   Complete this form and attach it to both the return you file with the United States and the copy you file with the USVI. Free federal tax return Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. Free federal tax return S. Free federal tax return return (after certain adjustments) × USVI AGI Worldwide AGI     Pay any tax due to the USVI when you file your return with the Virgin Islands Bureau of Internal Revenue. Free federal tax return To receive credit on your U. Free federal tax return S. Free federal tax return return for taxes paid to the USVI, include the amounts from Form 8689, lines 40 and 45, in the total on Form 1040, line 72. Free federal tax return On the dotted line next to line 72, enter “Form 8689” and show the amounts. Free federal tax return   See the illustrated example in chapter 5. Free federal tax return De minimis exception to determining source of income. Free federal tax return   In certain situations you will not have income from a possession. Free federal tax return See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free federal tax return   If you are not a bona fide resident of the USVI during the entire tax year, but you have USVI source income, and you are not including a check or a money order, file Form 1040 and all attachments (including Form 8689) with the:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. Free federal tax return S. Free federal tax return Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Free federal tax return Thomas, VI 00802 Nonresident Alien (Other Than a Bona Fide Resident of the USVI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the USVI for the entire tax year, you generally must file the following returns. Free federal tax return A USVI tax return reporting only your income from sources within the USVI. Free federal tax return In this situation, wages for services performed in the USVI, whether for a private employer, the U. Free federal tax return S. Free federal tax return Government, or otherwise, is income from sources within the USVI. Free federal tax return A U. Free federal tax return S. Free federal tax return tax return (Form 1040NR) reporting U. Free federal tax return S. Free federal tax return source income according to the rules for a nonresident alien. Free federal tax return See the instructions for Form 1040NR. Free federal tax return   If you are not a bona fide resident of the USVI during the entire tax year, and you are not including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 8689) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free federal tax return S. Free federal tax return tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Free federal tax return O. Free federal tax return Box 1303 Charlotte, NC 28201-1303  USA   Send your USVI tax return and all attachments to:  Bureau of Internal Revenue 6115 Estate Smith Bay St. Free federal tax return Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. Free federal tax return Joint return. Free federal tax return   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Free federal tax return If the spouse with the greater AGI is a bona fide resident of the USVI during the entire tax year, file the joint return with the USVI. Free federal tax return If the spouse with the greater AGI is a U. Free federal tax return S. Free federal tax return citizen or resident alien of the United States but not a bona fide resident of the USVI during the entire tax year, file the joint return with the United States. Free federal tax return For this purpose, income is determined without regard to community property laws. Free federal tax return Example. Free federal tax return Marge Birch, a U. Free federal tax return S. Free federal tax return citizen, was a resident of the United States, and her spouse, a citizen of the USVI, was a bona fide resident of the USVI during the entire tax year. Free federal tax return Marge earned $55,000 as an architect in the United States. Free federal tax return Her spouse earned $30,000 as a librarian in the USVI. Free federal tax return Marge and her spouse will file a joint return. Free federal tax return Because Marge has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. Free federal tax return U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If you are a member of the U. Free federal tax return S. Free federal tax return Armed Forces who qualified as a bona fide resident of the U. Free federal tax return S. Free federal tax return Virgin Islands in a prior tax year, your absence from the U. Free federal tax return S. Free federal tax return Virgin Islands solely in compliance with military orders will not change your bona fide residency. Free federal tax return If you did not qualify as a bona fide resident of the U. Free federal tax return S. Free federal tax return Virgin Islands in a prior tax year, your presence in the U. Free federal tax return S. Free federal tax return Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. Free federal tax return S. Free federal tax return Virgin Islands. Free federal tax return Civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces. Free federal tax return   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free federal tax return S. Free federal tax return Armed Forces ), your tax residence is the USVI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free federal tax return However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the USVI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free federal tax return S. Free federal tax return tax return (Form 1040) and a state and/or local tax return, if required. Free federal tax return If you have income from the USVI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 8689 with your U. Free federal tax return S. Free federal tax return tax return. Free federal tax return In this case, follow the guidance under U. Free federal tax return S. Free federal tax return Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. Free federal tax return Moving expense deduction. Free federal tax return   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. Free federal tax return Likewise, the expenses of a move back to the United States are generally attributable to U. Free federal tax return S. Free federal tax return earned income. Free federal tax return   If your move was to the USVI, report your deduction for moving expenses as follows. Free federal tax return If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. Free federal tax return If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 8689, line 20. Free federal tax return   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free federal tax return Foreign tax credit. Free federal tax return   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. Free federal tax return S. Free federal tax return income tax return for tax paid to the USVI. Free federal tax return However, individuals other than bona fide residents of the USVI may claim a direct credit for such tax (see Form 8689 earlier in this section). Free federal tax return Self-employment tax. Free federal tax return   If you have no U. Free federal tax return S. Free federal tax return filing requirement, but have income that is effectively connected with a trade or business in the USVI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free federal tax return Additional Medicare Tax. Free federal tax return   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free federal tax return Also, you may need to report Additional Medicare Tax withheld by your employer. Free federal tax return For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free federal tax return S. Free federal tax return Tax Return in chapter 4. Free federal tax return Estimated tax payments. Free federal tax return   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. Free federal tax return   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay St. Free federal tax return Thomas, VI 00802   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free federal tax return irs. Free federal tax return gov/e-pay. Free federal tax return   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. Free federal tax return Extension of time to file. Free federal tax return   You can get an automatic 6-month extension of time to file your tax return. Free federal tax return See Extension of Time To File in chapter 4. Free federal tax return Bona fide residents of the USVI during the entire tax year must file a paper Form 4868 with the Virgin Islands Bureau of Internal Revenue. Free federal tax return Nonresidents of the USVI should file separate extension requests with the IRS and the Virgin Islands Bureau of Internal Revenue and make any payments due to the respective jurisdictions. Free federal tax return However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. Free federal tax return Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. Free federal tax return S. Free federal tax return Virgin Islands. Free federal tax return See Double Taxation in chapter 4. Free federal tax return Prev  Up  Next   Home   More Online Publications
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IRS Offers New Streamlined Option to Certain 501(c)(4) Groups Caught in Application Backlog

FS-2013-8, June 2013

Following a review of internal procedures to reduce the backlog of tax-exempt applications, the IRS is offering certain organizations that have applied for 501(c)(4) status a faster, optional method to gain tax-exempt status.

The IRS will start mailing about 80 letters this week offering the expedited option to groups that have had their applications pending for more than 120 days and involve possible political campaign intervention or issue advocacy. This effort is part of an internal review of IRS operations, processes and practices at the IRS announced today.

“The IRS is committed to improving our tax-exempt review process,” said IRS Principal Deputy Commissioner Danny Werfel. “This new streamlined option gives certain groups that have waited far too long a quick and clear path to get their status resolved.”

This “safe-harbor” option will provide certain groups an approved determination letter granting them 501(c)(4) status within two weeks if they certify they devote 60 percent or more of both their spending and time on activities that promote social welfare as defined by Section 501(c)(4). At the same time, they must certify that political campaign intervention involves less than 40 percent of both their spending and time. These thresholds apply for past, current and future years of operation. Solely for the purpose of determining eligibility for the expedited procedure, an organization must count, among other things, any public communication identifying a candidate that occurred within 60 days prior to a general election or 30 days prior to a primary as political campaign intervention.

 “The IRS will treat these groups fairly and review applications promptly, a step that will immediately reduce the backlog of these cases,” Werfel said. “At the same time, the IRS will work to ensure 501(c)(4) groups follow the law set by Congress. As part of our efforts, the IRS will continue to look for ways to improve its processes going forward.”

The IRS also emphasized that any eligible organizations that do not choose the expedited option will be treated fairly and expeditiously through the regular review process.

Full details of the expedited process and specific instructions for the groups qualifying for the option can be found in IRS Letter 5228.

Related Item: New Review Process and Expedited Self-Certification Option

 

Page Last Reviewed or Updated: 19-Dec-2013

The Free Federal Tax Return

Free federal tax return 8. Free federal tax return   Dividends and Other Distributions Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationDividends not reported on Form 1099-DIV. Free federal tax return Reporting tax withheld. Free federal tax return Nominees. Free federal tax return Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. Free federal tax return Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. Free federal tax return Alternative minimum tax treatment. Free federal tax return How To Report Dividend IncomeInvestment interest deducted. Free federal tax return Reminder Foreign-source income. Free federal tax return  If you are a U. Free federal tax return S. Free federal tax return citizen with dividend income from sources outside the United States (foreign-source income), you must report that income on your tax return unless it is exempt by U. Free federal tax return S. Free federal tax return law. Free federal tax return This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. Free federal tax return Introduction This chapter discusses the tax treatment of: Ordinary dividends, Capital gain distributions, Nondividend distributions, and Other distributions you may receive from a corporation or a mutual fund. Free federal tax return This chapter also explains how to report dividend income on your tax return. Free federal tax return Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. Free federal tax return You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. Free federal tax return However, some amounts you receive that are called dividends are actually interest income. Free federal tax return (See Dividends that are actually interest under Taxable Interest in chapter 7. Free federal tax return ) Most distributions are paid in cash (or check). Free federal tax return However, distributions can consist of more stock, stock rights, other property, or services. Free federal tax return Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 550 Investment Income and Expenses Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends General Information This section discusses general rules for dividend income. Free federal tax return Tax on unearned income of certain children. Free federal tax return   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Free federal tax return If it is, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. Free federal tax return If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Free federal tax return    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. Free federal tax return Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. Free federal tax return   For more information about the tax on unearned income of children and the parents' election, see chapter 31. Free federal tax return Beneficiary of an estate or trust. Free federal tax return    Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. Free federal tax return You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Free federal tax return , from the fiduciary. Free federal tax return Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Free federal tax return Social security number (SSN) or individual taxpayer identification number (ITIN). Free federal tax return    You must give your SSN or ITIN to any person required by federal tax law to make a return, statement, or other document that relates to you. Free federal tax return This includes payers of dividends. Free federal tax return If you do not give your SSN or ITIN to the payer of dividends, you may have to pay a penalty. Free federal tax return For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Free federal tax return Backup withholding. Free federal tax return   Your dividend income is generally not subject to regular withholding. Free federal tax return However, it may be subject to backup withholding to ensure that income tax is collected on the income. Free federal tax return Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Free federal tax return   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. Free federal tax return For more information, see Backup Withholding in chapter 4. Free federal tax return Stock certificate in two or more names. Free federal tax return   If two or more persons hold stock as joint tenants, tenants by the entirety, or tenants in common, each person's share of any dividends from the stock is determined by local law. Free federal tax return Form 1099-DIV. Free federal tax return   Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to show you the distributions you received from them during the year. Free federal tax return Keep this form with your records. Free federal tax return You do not have to attach it to your tax return. Free federal tax return Dividends not reported on Form 1099-DIV. Free federal tax return   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. Free federal tax return For example, you may receive distributive shares of dividends from partnerships or S corporations. Free federal tax return These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Free federal tax return , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Free federal tax return Reporting tax withheld. Free federal tax return   If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld. Free federal tax return Nominees. Free federal tax return   If someone receives distributions as a nominee for you, that person should give you a Form 1099-DIV, which will show distributions received on your behalf. Free federal tax return Form 1099-MISC. Free federal tax return   Certain substitute payments in lieu of dividends or tax-exempt interest received by a broker on your behalf must be reported to you on Form 1099-MISC, Miscellaneous Income, or a similar statement. Free federal tax return See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. Free federal tax return Incorrect amount shown on a Form 1099. Free federal tax return   If you receive a Form 1099 that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. Free federal tax return The new Form 1099 you receive will be marked “Corrected. Free federal tax return ” Dividends on stock sold. Free federal tax return   If stock is sold, exchanged, or otherwise disposed of after a dividend is declared but before it is paid, the owner of record (usually the payee shown on the dividend check) must include the dividend in income. Free federal tax return Dividends received in January. Free federal tax return   If a mutual fund (or other regulated investment company) or real estate investment trust (REIT) declares a dividend (including any exempt-interest dividend or capital gain distribution) in October, November, or December, payable to shareholders of record on a date in one of those months but actually pays the dividend during January of the next calendar year, you are considered to have received the dividend on December 31. Free federal tax return You report the dividend in the year it was declared. Free federal tax return Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. Free federal tax return They are paid out of earnings and profits and are ordinary income to you. Free federal tax return This means they are not capital gains. Free federal tax return You can assume that any dividend you receive on common or preferred stock is an ordinary dividend unless the paying corporation or mutual fund tells you otherwise. Free federal tax return Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. Free federal tax return Qualified Dividends Qualified dividends are the ordinary dividends subject to the same 0%, 15%, or 20% maximum tax rate that applies to net capital gain. Free federal tax return They should be shown in box 1b of the Form 1099-DIV you receive. Free federal tax return The maximum rate of tax on qualified dividends is: 0% on any amount that otherwise would be taxed at a 10% or 15% rate. Free federal tax return 15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39. Free federal tax return 6%. Free federal tax return 20% on any amount that otherwise would be taxed at a 39. Free federal tax return 6% rate. Free federal tax return To qualify for the maximum rate, all of the following requirements must be met. Free federal tax return The dividends must have been paid by a U. Free federal tax return S. Free federal tax return corporation or a qualified foreign corporation. Free federal tax return (See Qualified foreign corporation , later. Free federal tax return ) The dividends are not of the type listed later under Dividends that are not qualified dividends . Free federal tax return You meet the holding period (discussed next). Free federal tax return Holding period. Free federal tax return   You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Free federal tax return The ex-dividend date is the first date following the declaration of a dividend on which the buyer of a stock is not entitled to receive the next dividend payment. Free federal tax return Instead, the seller will get the dividend. Free federal tax return   When counting the number of days you held the stock, include the day you disposed of the stock, but not the day you acquired it. Free federal tax return See the examples later. Free federal tax return Exception for preferred stock. Free federal tax return   In the case of preferred stock, you must have held the stock more than 90 days during the 181-day period that begins 90 days before the ex-dividend date if the dividends are due to periods totaling more than 366 days. Free federal tax return If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. Free federal tax return Example 1. Free federal tax return You bought 5,000 shares of XYZ Corp. Free federal tax return common stock on July 9, 2013. Free federal tax return XYZ Corp. Free federal tax return paid a cash dividend of 10 cents per share. Free federal tax return The ex-dividend date was July 16, 2013. Free federal tax return Your Form 1099-DIV from XYZ Corp. Free federal tax return shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). Free federal tax return However, you sold the 5,000 shares on August 12, 2013. Free federal tax return You held your shares of XYZ Corp. Free federal tax return for only 34 days of the 121-day period (from July 10, 2013, through August 12, 2013). Free federal tax return The 121-day period began on May 17, 2013 (60 days before the ex-dividend date), and ended on September 14, 2013. Free federal tax return You have no qualified dividends from XYZ Corp. Free federal tax return because you held the XYZ stock for less than 61 days. Free federal tax return Example 2. Free federal tax return Assume the same facts as in Example 1 except that you bought the stock on July 15, 2013 (the day before the ex-dividend date), and you sold the stock on September 16, 2013. Free federal tax return You held the stock for 63 days (from July 16, 2013, through September 16, 2013). Free federal tax return The $500 of qualified dividends shown in box 1b of your Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 16, 2013, through September 14, 2013). Free federal tax return Example 3. Free federal tax return You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2013. Free federal tax return ABC Mutual Fund paid a cash dividend of 10 cents a share. Free federal tax return The ex-dividend date was July 16, 2013. Free federal tax return The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Free federal tax return Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. Free federal tax return However, you sold the 10,000 shares on August 12, 2013. Free federal tax return You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. Free federal tax return Holding period reduced where risk of loss is diminished. Free federal tax return   When determining whether you met the minimum holding period discussed earlier, you cannot count any day during which you meet any of the following conditions. Free federal tax return You had an option to sell, were under a contractual obligation to sell, or had made (and not closed) a short sale of substantially identical stock or securities. Free federal tax return You were grantor (writer) of an option to buy substantially identical stock or securities. Free federal tax return Your risk of loss is diminished by holding one or more other positions in substantially similar or related property. Free federal tax return   For information about how to apply condition (3), see Regulations section 1. Free federal tax return 246-5. Free federal tax return Qualified foreign corporation. Free federal tax return   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. Free federal tax return The corporation is incorporated in a U. Free federal tax return S. Free federal tax return possession. Free federal tax return The corporation is eligible for the benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an exchange of information program. Free federal tax return For a list of those treaties, see Table 8-1. Free federal tax return The corporation does not meet (1) or (2) above, but the stock for which the dividend is paid is readily tradable on an established securities market in the United States. Free federal tax return See Readily tradable stock , later. Free federal tax return Exception. Free federal tax return   A corporation is not a qualified foreign corporation if it is a passive foreign investment company during its tax year in which the dividends are paid or during its previous tax year. Free federal tax return Readily tradable stock. Free federal tax return   Any stock (such as common, ordinary, or preferred) or an American depositary receipt in respect of that stock is considered to satisfy requirement (3) under Qualified foreign corporation , if it is listed on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934 or on the Nasdaq Stock Market. Free federal tax return For a list of the exchanges that meet these requirements, see www. Free federal tax return sec. Free federal tax return gov/divisions/marketreg/mrexchanges. Free federal tax return shtml. Free federal tax return Dividends that are not qualified dividends. Free federal tax return   The following dividends are not qualified dividends. Free federal tax return They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. Free federal tax return Capital gain distributions. Free federal tax return Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. Free federal tax return S. Free federal tax return building and loan associations, U. Free federal tax return S. Free federal tax return savings and loan associations, federal savings and loan associations, and similar financial institutions. Free federal tax return (Report these amounts as interest income. Free federal tax return ) Dividends from a corporation that is a tax-exempt organization or farmer's cooperative during the corporation's tax year in which the dividends were paid or during the corporation's previous tax year. Free federal tax return Dividends paid by a corporation on employer securities held on the date of record by an employee stock ownership plan (ESOP) maintained by that corporation. Free federal tax return Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property. Free federal tax return Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Free federal tax return Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends. Free federal tax return Table 8-1. Free federal tax return Income Tax Treaties Income tax treaties the United States has with the following countries satisfy requirement (2) under Qualified foreign corporation. Free federal tax return Australia Indonesia Romania Austria Ireland Russian Bangladesh Israel Federation Barbados Italy Slovak Belgium Jamaica Republic Bulgaria Japan Slovenia Canada Kazakhstan South Africa China Korea Spain Cyprus Latvia Sri Lanka Czech Lithuania Sweden Republic Luxembourg Switzerland Denmark Malta Thailand Egypt Mexico Trinidad and Estonia Morocco Tobago Finland Netherlands Tunisia France New Zealand Turkey Germany Norway Ukraine Greece Pakistan United Hungary Philippines Kingdom Iceland Poland Venezuela India Portugal     Dividends Used to Buy More Stock The corporation in which you own stock may have a dividend reinvestment plan. Free federal tax return This plan lets you choose to use your dividends to buy (through an agent) more shares of stock in the corporation instead of receiving the dividends in cash. Free federal tax return Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. Free federal tax return If you use your dividends to buy more stock at a price equal to its fair market value, you still must report the dividends as income. Free federal tax return If you are a member of a dividend reinvestment plan that lets you buy more stock at a price less than its fair market value, you must report as dividend income the fair market value of the additional stock on the dividend payment date. Free federal tax return You also must report as dividend income any service charge subtracted from your cash dividends before the dividends are used to buy the additional stock. Free federal tax return But you may be able to deduct the service charge. Free federal tax return See chapter 28 for more information about deducting expenses of producing income. Free federal tax return In some dividend reinvestment plans, you can invest more cash to buy shares of stock at a price less than fair market value. Free federal tax return If you choose to do this, you must report as dividend income the difference between the cash you invest and the fair market value of the stock you buy. Free federal tax return When figuring this amount, use the fair market value of the stock on the dividend payment date. Free federal tax return Money Market Funds Report amounts you receive from money market funds as dividend income. Free federal tax return Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest. Free federal tax return Capital Gain Distributions Capital gain distributions (also called capital gain dividends) are paid to you or credited to your account by mutual funds (or other regulated investment companies) and real estate investment trusts (REITs). Free federal tax return They will be shown in box 2a of the Form 1099-DIV you receive from the mutual fund or REIT. Free federal tax return Report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. Free federal tax return Undistributed capital gains of mutual funds and REITs. Free federal tax return    Some mutual funds and REITs keep their long-term capital gains and pay tax on them. Free federal tax return You must treat your share of these gains as distributions, even though you did not actually receive them. Free federal tax return However, they are not included on Form 1099-DIV. Free federal tax return Instead, they are reported to you in box 1a of Form 2439. Free federal tax return   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. Free federal tax return   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. Free federal tax return You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. Free federal tax return Attach Copy B of Form 2439 to your return, and keep Copy C for your records. Free federal tax return Basis adjustment. Free federal tax return   Increase your basis in your mutual fund, or your interest in a REIT, by the difference between the gain you report and the credit you claim for the tax paid. Free federal tax return Additional information. Free federal tax return   For more information on the treatment of distributions from mutual funds, see Publication 550. Free federal tax return Nondividend Distributions A nondividend distribution is a distribution that is not paid out of the earnings and profits of a corporation or a mutual fund. Free federal tax return You should receive a Form 1099-DIV or other statement showing the nondividend distribution. Free federal tax return On Form 1099-DIV, a nondividend distribution will be shown in box 3. Free federal tax return If you do not receive such a statement, you report the distribution as an ordinary dividend. Free federal tax return Basis adjustment. Free federal tax return   A nondividend distribution reduces the basis of your stock. Free federal tax return It is not taxed until your basis in the stock is fully recovered. Free federal tax return This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. Free federal tax return If you buy stock in a corporation in different lots at different times, and you cannot definitely identify the shares subject to the nondividend distribution, reduce the basis of your earliest purchases first. Free federal tax return   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. Free federal tax return Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. Free federal tax return See Holding Period in chapter 14. Free federal tax return Example. Free federal tax return You bought stock in 2000 for $100. Free federal tax return In 2003, you received a nondividend distribution of $80. Free federal tax return You did not include this amount in your income, but you reduced the basis of your stock to $20. Free federal tax return You received a nondividend distribution of $30 in 2013. Free federal tax return The first $20 of this amount reduced your basis to zero. Free federal tax return You report the other $10 as a long-term capital gain for 2013. Free federal tax return You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. Free federal tax return Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. Free federal tax return These distributions are, at least in part, one form of a return of capital. Free federal tax return They may be paid in one or more installments. Free federal tax return You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. Free federal tax return For more information on liquidating distributions, see chapter 1 of Publication 550. Free federal tax return Distributions of Stock and Stock Rights Distributions by a corporation of its own stock are commonly known as stock dividends. Free federal tax return Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. Free federal tax return Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return. Free federal tax return Taxable stock dividends and stock rights. Free federal tax return   Distributions of stock dividends and stock rights are taxable to you if any of the following apply. Free federal tax return You or any other shareholder have the choice to receive cash or other property instead of stock or stock rights. Free federal tax return The distribution gives cash or other property to some shareholders and an increase in the percentage interest in the corporation's assets or earnings and profits to other shareholders. Free federal tax return The distribution is in convertible preferred stock and has the same result as in (2). Free federal tax return The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders. Free federal tax return The distribution is on preferred stock. Free federal tax return (The distribution, however, is not taxable if it is an increase in the conversion ratio of convertible preferred stock made solely to take into account a stock dividend, stock split, or similar event that would otherwise result in reducing the conversion right. Free federal tax return )   The term “stock” includes rights to acquire stock, and the term “shareholder” includes a holder of rights or of convertible securities. Free federal tax return If you receive taxable stock dividends or stock rights, include their fair market value at the time of distribution in your income. Free federal tax return Preferred stock redeemable at a premium. Free federal tax return   If you hold preferred stock having a redemption price higher than its issue price, the difference (the redemption premium) generally is taxable as a constructive distribution of additional stock on the preferred stock. Free federal tax return For more information, see chapter 1 of Publication 550. Free federal tax return Basis. Free federal tax return   Your basis in stock or stock rights received in a taxable distribution is their fair market value when distributed. Free federal tax return If you receive stock or stock rights that are not taxable to you, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550 for information on how to figure their basis. Free federal tax return Fractional shares. Free federal tax return    You may not own enough stock in a corporation to receive a full share of stock if the corporation declares a stock dividend. Free federal tax return However, with the approval of the shareholders, the corporation may set up a plan in which fractional shares are not issued but instead are sold, and the cash proceeds are given to the shareholders. Free federal tax return Any cash you receive for fractional shares under such a plan is treated as an amount realized on the sale of the fractional shares. Free federal tax return Report this transaction on Form 8949, Sales and Other Dispositions of Capital Assets. Free federal tax return Enter your gain or loss, the difference between the cash you receive and the basis of the fractional shares sold, in column (h) of Schedule D (Form 1040) in Part I or Part II, whichever is appropriate. Free federal tax return    Report these transactions on Form 8949 with the correct box checked. Free federal tax return   For more information on Form 8949 and Schedule D (Form 1040), see chapter 4 of Publication 550. Free federal tax return Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Free federal tax return Example. Free federal tax return You own one share of common stock that you bought on January 3, 2004, for $100. Free federal tax return The corporation declared a common stock dividend of 5% on June 29, 2013. Free federal tax return The fair market value of the stock at the time the stock dividend was declared was $200. Free federal tax return You were paid $10 for the fractional-share stock dividend under a plan described in the discussion above. Free federal tax return You figure your gain or loss as follows: Fair market value of old stock $200. Free federal tax return 00 Fair market value of stock dividend (cash received) +10. Free federal tax return 00 Fair market value of old stock and stock dividend $210. Free federal tax return 00 Basis (cost) of old stock after the stock dividend (($200 ÷ $210) × $100) $95. Free federal tax return 24 Basis (cost) of stock dividend (($10 ÷ $210) × $100) + 4. Free federal tax return 76 Total $100. Free federal tax return 00 Cash received $10. Free federal tax return 00 Basis (cost) of stock dividend − 4. Free federal tax return 76 Gain $5. Free federal tax return 24 Because you had held the share of stock for more than 1 year at the time the stock dividend was declared, your gain on the stock dividend is a long-term capital gain. Free federal tax return Scrip dividends. Free federal tax return   A corporation that declares a stock dividend may issue you a scrip certificate that entitles you to a fractional share. Free federal tax return The certificate is generally nontaxable when you receive it. Free federal tax return If you choose to have the corporation sell the certificate for you and give you the proceeds, your gain or loss is the difference between the proceeds and the portion of your basis in the corporation's stock allocated to the certificate. Free federal tax return   However, if you receive a scrip certificate that you can choose to redeem for cash instead of stock, the certificate is taxable when you receive it. Free federal tax return You must include its fair market value in income on the date you receive it. Free federal tax return Other Distributions You may receive any of the following distributions during the year. Free federal tax return Exempt-interest dividends. Free federal tax return   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. Free federal tax return Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Free federal tax return Information reporting requirement. Free federal tax return   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. Free federal tax return This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. Free federal tax return Alternative minimum tax treatment. Free federal tax return   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Free federal tax return See Alternative Minimum Tax (AMT) in chapter 30 for more information. Free federal tax return Dividends on insurance policies. Free federal tax return    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. Free federal tax return However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. Free federal tax return    If dividends on an insurance contract (other than a modified endowment contract) are distributed to you, they are a partial return of the premiums you paid. Free federal tax return Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. Free federal tax return Report any taxable distributions on insurance policies on Form 1040, line 21. Free federal tax return Dividends on veterans' insurance. Free federal tax return   Dividends you receive on veterans' insurance policies are not taxable. Free federal tax return In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. Free federal tax return Patronage dividends. Free federal tax return   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. Free federal tax return   Do not include in your income patronage dividends you receive on: Property bought for your personal use, or Capital assets or depreciable property bought for use in your business. Free federal tax return But you must reduce the basis (cost) of the items bought. Free federal tax return If the dividend is more than the adjusted basis of the assets, you must report the excess as income. Free federal tax return   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. Free federal tax return Alaska Permanent Fund dividends. Free federal tax return    Do not report these amounts as dividends. Free federal tax return Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. Free federal tax return How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. Free federal tax return Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. Free federal tax return Report qualified dividends on line 9b of Form 1040 or Form 1040A. Free federal tax return If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. Free federal tax return See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. Free federal tax return If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. Free federal tax return You cannot use Form 1040EZ if you receive any dividend income. Free federal tax return Form 1099-DIV. Free federal tax return   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. Free federal tax return Even if you do not receive Form 1099-DIV, you must report all your dividend income. Free federal tax return   See Form 1099-DIV for more information on how to report dividend income. Free federal tax return Form 1040A or 1040. Free federal tax return    You must complete Schedule B (Form 1040A or 1040), Part II, and attach it to your Form 1040A or 1040, if: Your ordinary dividends (Form 1099-DIV, box 1a) are more than $1,500, or You received, as a nominee, dividends that actually belong to someone else. Free federal tax return If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. Free federal tax return   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. Free federal tax return If your securities are held by a brokerage firm (in “street name”), list the name of the brokerage firm shown on Form 1099-DIV as the payer. Free federal tax return If your stock is held by a nominee who is the owner of record, and the nominee credited or paid you dividends on the stock, show the name of the nominee and the dividends you received or for which you were credited. Free federal tax return   Enter on line 6 the total of the amounts listed on line 5. Free federal tax return Also enter this total on line 9a of Form 1040A or 1040. Free federal tax return Qualified dividends. Free federal tax return   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. Free federal tax return The amount in box 1b is already included in box 1a. Free federal tax return Do not add the amount in box 1b to, or substract it from, the amount in box 1a. Free federal tax return   Do not include any of the following on line 9b. Free federal tax return Qualified dividends you received as a nominee. Free federal tax return See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. Free federal tax return Dividends on stock for which you did not meet the holding period. Free federal tax return See Holding period , earlier under Qualified Dividends. Free federal tax return Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property. Free federal tax return Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Free federal tax return Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends. Free federal tax return   If you have qualified dividends, you must figure your tax by completing the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 or 1040A instructions or the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions, whichever applies. Free federal tax return Enter qualified dividends on line 2 of the worksheet. Free federal tax return Investment interest deducted. Free federal tax return   If you claim a deduction for investment interest, you may have to reduce the amount of your qualified dividends that are eligible for the 0%, 15%, or 20% tax rate. Free federal tax return Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. Free federal tax return This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. Free federal tax return For more information about the limit on investment interest, see Investment expenses in chapter 23. Free federal tax return Expenses related to dividend income. Free federal tax return   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). Free federal tax return See chapter 28 for general information about deducting expenses of producing income. Free federal tax return More information. Free federal tax return    For more information about how to report dividend income, see chapter 1 of Publication 550 or the instructions for the form you must file. Free federal tax return Prev  Up  Next   Home   More Online Publications