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Free H&r Block Tax Software 2011

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Free H&r Block Tax Software 2011

Free h&r block tax software 2011 Publication 516 - Main Content Table of Contents U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Tax ReturnFiling Information Foreign Bank Accounts U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Free h&r block tax software 2011 U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Tax Return Filing Information If you are a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Free h&r block tax software 2011 However, the special rules explained in the following discussions may apply to you. Free h&r block tax software 2011 See also Tax Treaty Benefits, later. Free h&r block tax software 2011 When To File and Pay Most individual tax returns cover a calendar year, January through December. Free h&r block tax software 2011 The regular due date for these tax returns is April 15 of the following year. Free h&r block tax software 2011 If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Free h&r block tax software 2011 If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Free h&r block tax software 2011 You must pay interest on any tax not paid by the regular due date. Free h&r block tax software 2011 Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Free h&r block tax software 2011 See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Free h&r block tax software 2011 If your return is filed late, the postmark or delivery service date does not determine the date of filing. Free h&r block tax software 2011 In that case, your return is considered filed when it is received by the IRS. Free h&r block tax software 2011 Extensions You may be able to get an extension of time to file your return and pay your tax. Free h&r block tax software 2011 Automatic 2-month extension. Free h&r block tax software 2011   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Free h&r block tax software 2011 To get this extension, you must attach a statement to your return explaining how you qualified. Free h&r block tax software 2011 You will owe interest on any tax not paid by the regular due date of your return. Free h&r block tax software 2011 Married taxpayers. Free h&r block tax software 2011   If you file a joint return, either you or your spouse can qualify for the automatic extension. Free h&r block tax software 2011 If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Free h&r block tax software 2011 Additional extension. Free h&r block tax software 2011   You can apply for an additional extension of time to file your return by filing Form 4868. Free h&r block tax software 2011 You must file Form 4868 by the due date for your income tax return. Free h&r block tax software 2011   Generally, you must file it by April 15. Free h&r block tax software 2011 However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Free h&r block tax software 2011 Check the box on line 8 of Form 4868. Free h&r block tax software 2011 Payment of tax. Free h&r block tax software 2011   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Free h&r block tax software 2011 The late-payment penalty applies if, through withholding, etc. Free h&r block tax software 2011 , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Free h&r block tax software 2011 Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Free h&r block tax software 2011 Electronic filing. Free h&r block tax software 2011   You can file for the additional extension by phone, using your home computer, or through a tax professional. Free h&r block tax software 2011 See Form 4868 for more information. Free h&r block tax software 2011 Limit on additional extensions. Free h&r block tax software 2011   You generally cannot get a total extension of more than 6 months. Free h&r block tax software 2011 However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Free h&r block tax software 2011   For more information, see Publication 54. Free h&r block tax software 2011 Foreign Bank Accounts You must file Form TD F 90-22. Free h&r block tax software 2011 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Free h&r block tax software 2011 This applies if the combined assets in the account(s) were more than $10,000. Free h&r block tax software 2011 Do not include accounts in a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 military banking facility operated by a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 financial institution. Free h&r block tax software 2011 File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Free h&r block tax software 2011 Do not attach it to Form 1040. Free h&r block tax software 2011 If you are required to file Form TD F 90-22. Free h&r block tax software 2011 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Free h&r block tax software 2011 You also may be required to file Form 8938 with your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Free h&r block tax software 2011 For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Free h&r block tax software 2011 For more information, see Form 8938 and its instructions. Free h&r block tax software 2011 U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Free h&r block tax software 2011 If you are a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 law. Free h&r block tax software 2011 This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Free h&r block tax software 2011 If you are a nonresident alien, your income from sources outside the United States is not subject to U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 tax. Free h&r block tax software 2011 Foreign Earned Income Exclusion Employees of the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government as an employee. Free h&r block tax software 2011 But see Other Employment, later. Free h&r block tax software 2011 Special Situations In the following two situations, your pay is from the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government and does not qualify for the foreign earned income exclusion. Free h&r block tax software 2011 U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 agency reimbursed by foreign country. Free h&r block tax software 2011   If you are a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government employee paid by a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 agency to perform services in a foreign country, your pay is from the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Free h&r block tax software 2011 This is true even if the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 agency is reimbursed by the foreign government. Free h&r block tax software 2011 Employees of post exchanges, etc. Free h&r block tax software 2011   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government, the earnings you receive are paid by the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government. Free h&r block tax software 2011 This is true whether they are paid from appropriated or nonappropriated funds. Free h&r block tax software 2011 These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Free h&r block tax software 2011 Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Free h&r block tax software 2011 Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Free h&r block tax software 2011 In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizens or green card holders. Free h&r block tax software 2011 Consequently, if you are a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen or green card holder, you will generally not be entitled to reduce your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 tax on your government pay. Free h&r block tax software 2011 If you are neither a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Free h&r block tax software 2011 Review the treaty text carefully. Free h&r block tax software 2011 U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizens must always file Form 1040. Free h&r block tax software 2011 Non-U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Free h&r block tax software 2011 If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Free h&r block tax software 2011 Most income tax treaties contain an article providing relief from double taxation. Free h&r block tax software 2011 Many treaties contain special foreign tax credit rules for U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizens who are residents of a treaty country. Free h&r block tax software 2011 For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Free h&r block tax software 2011 Allowances, Differentials, and Special Pay Most payments received by U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government civilian employees for working abroad, including pay differentials, are taxable. Free h&r block tax software 2011 However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Free h&r block tax software 2011 The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Free h&r block tax software 2011 Pay differentials. Free h&r block tax software 2011   Pay differentials you receive as financial incentives for employment abroad are taxable. Free h&r block tax software 2011 Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Free h&r block tax software 2011   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Free h&r block tax software 2011 The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Free h&r block tax software 2011 Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Free h&r block tax software 2011 Foreign areas allowances. Free h&r block tax software 2011   Certain foreign areas allowances are tax free. Free h&r block tax software 2011 Your employer should not have included these allowances as wages on your Form W-2. Free h&r block tax software 2011   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Free h&r block tax software 2011 Title I, chapter 9, of the Foreign Service Act of 1980. Free h&r block tax software 2011 Section 4 of the Central Intelligence Agency Act of 1949, as amended. Free h&r block tax software 2011 Title II of the Overseas Differentials and Allowances Act. Free h&r block tax software 2011 Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Free h&r block tax software 2011 These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Free h&r block tax software 2011 Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Free h&r block tax software 2011 Cost-of-living allowances. Free h&r block tax software 2011   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Free h&r block tax software 2011 The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Free h&r block tax software 2011 Cost-of-living allowances are not included on your Form W-2. Free h&r block tax software 2011 Federal court employees. Free h&r block tax software 2011   If you are a federal court employee, the preceding paragraph also applies to you. Free h&r block tax software 2011 The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Free h&r block tax software 2011 American Institute in Taiwan. Free h&r block tax software 2011   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government. Free h&r block tax software 2011 Federal reemployment payments after serving with an international organization. Free h&r block tax software 2011   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Free h&r block tax software 2011 These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Free h&r block tax software 2011 Allowances or reimbursements for travel and transportation expenses. Free h&r block tax software 2011   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Free h&r block tax software 2011 Lodging furnished to a principal representative of the United States. Free h&r block tax software 2011   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Free h&r block tax software 2011 However, amounts paid by the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 government for your usual costs of operating and maintaining your household are taxable. Free h&r block tax software 2011 If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Free h&r block tax software 2011 Peace Corps. Free h&r block tax software 2011   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Free h&r block tax software 2011 Taxable allowances. Free h&r block tax software 2011   The following allowances must be included on your Form W-2 and reported on your return as wages. Free h&r block tax software 2011 If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Free h&r block tax software 2011 The part of living allowances designated by the Director of the Peace Corps as basic compensation. Free h&r block tax software 2011 This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Free h&r block tax software 2011 Leave allowances. Free h&r block tax software 2011 Readjustment allowances or “termination payments. Free h&r block tax software 2011 ” Taxable allowances are considered received by you when credited to your account. Free h&r block tax software 2011 Example. Free h&r block tax software 2011 Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Free h&r block tax software 2011 Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Free h&r block tax software 2011 Nontaxable allowances. Free h&r block tax software 2011   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Free h&r block tax software 2011 These allowances should not be included on your Form W-2. Free h&r block tax software 2011 These allowances are tax free whether paid by the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government or the foreign country in which you are stationed. Free h&r block tax software 2011 Other Income Other employment. Free h&r block tax software 2011   If, in addition to your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Free h&r block tax software 2011 In addition, if your spouse is a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Free h&r block tax software 2011 For more information, see Publication 54. Free h&r block tax software 2011 The tax treaty rules relating to income from personal services generally apply to income from private employment. Free h&r block tax software 2011 As discussed above, the saving clause applies to you if you are a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Free h&r block tax software 2011 Sale of personal property. Free h&r block tax software 2011   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 dollars, the excess of the amount received in U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 dollars over the cost or other basis of the property is a capital gain. Free h&r block tax software 2011 Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Free h&r block tax software 2011 However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Free h&r block tax software 2011 Sale of your home. Free h&r block tax software 2011   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Free h&r block tax software 2011 Losses are not deductible. Free h&r block tax software 2011   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Free h&r block tax software 2011 Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Free h&r block tax software 2011   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Free h&r block tax software 2011   For detailed information on selling your home, see Publication 523. Free h&r block tax software 2011 Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Free h&r block tax software 2011 Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Free h&r block tax software 2011 These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Free h&r block tax software 2011 Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Free h&r block tax software 2011 Your tax home is not limited to the Embassy, consulate, or duty station. Free h&r block tax software 2011 It includes the entire city or general area in which your principal place of employment is located. Free h&r block tax software 2011 Traveling away from home. Free h&r block tax software 2011   You are traveling away from home if you meet both of the following requirements. Free h&r block tax software 2011 Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Free h&r block tax software 2011 You need to get sleep or rest to meet the demands of your work while away from home. Free h&r block tax software 2011 This requirement is not satisfied by merely napping in your car. Free h&r block tax software 2011 You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Free h&r block tax software 2011 Temporary assignment. Free h&r block tax software 2011   If your assignment or job away from your tax home is temporary, your tax home does not change. Free h&r block tax software 2011 You are considered to be away from home for the whole period, and your travel expenses are deductible. Free h&r block tax software 2011 Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Free h&r block tax software 2011   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Free h&r block tax software 2011 An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Free h&r block tax software 2011   You must determine whether your assignment is temporary or indefinite when you start work. Free h&r block tax software 2011 If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Free h&r block tax software 2011 Employment that is initially temporary may become indefinite due to changed circumstances. Free h&r block tax software 2011 A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Free h&r block tax software 2011 Exception for federal crime investigations or prosecutions. Free h&r block tax software 2011   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Free h&r block tax software 2011 This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Free h&r block tax software 2011 Limit on meals and entertainment. Free h&r block tax software 2011   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Free h&r block tax software 2011 However, the limit does not apply to expenses reimbursed under a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government expense allowance arrangement. Free h&r block tax software 2011 Individuals subject to hours of service limits. Free h&r block tax software 2011   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Free h&r block tax software 2011   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Free h&r block tax software 2011 Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Free h&r block tax software 2011 Interstate truck operators and bus drivers who are under Department of Transportation regulations. Free h&r block tax software 2011 Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Free h&r block tax software 2011 Certain merchant mariners who are under Coast Guard regulations. Free h&r block tax software 2011 Primary purpose of trip must be for business. Free h&r block tax software 2011   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Free h&r block tax software 2011 However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Free h&r block tax software 2011   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Free h&r block tax software 2011 This applies even if you engage in business activities while there. Free h&r block tax software 2011 However, you can deduct any expenses while at your destination that are directly related to your business. Free h&r block tax software 2011 Expenses paid for others. Free h&r block tax software 2011   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Free h&r block tax software 2011 Home leave. Free h&r block tax software 2011   The Foreign Service Act requires U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Free h&r block tax software 2011 This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Free h&r block tax software 2011   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Free h&r block tax software 2011 You must be able to verify these amounts in order to claim them. Free h&r block tax software 2011 Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Free h&r block tax software 2011 More information. Free h&r block tax software 2011   See chapter 1 of Publication 463 for more information on travel expenses. Free h&r block tax software 2011 Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Free h&r block tax software 2011 Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Free h&r block tax software 2011 They do not include expenses you have when traveling away from home overnight. Free h&r block tax software 2011 Those expenses are deductible as travel expenses and are discussed earlier. Free h&r block tax software 2011 Commuting. Free h&r block tax software 2011   You cannot deduct your transportation costs of going between your home and your regular business location. Free h&r block tax software 2011 These costs are personal commuting expenses. Free h&r block tax software 2011   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Free h&r block tax software 2011   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Free h&r block tax software 2011 More information. Free h&r block tax software 2011   For more information on transportation expenses, see chapter 4 of Publication 463. Free h&r block tax software 2011 Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Free h&r block tax software 2011 Membership dues. Free h&r block tax software 2011   You can deduct membership dues you pay to professional societies that relate to your business or profession. Free h&r block tax software 2011 Subscriptions. Free h&r block tax software 2011   You can deduct subscriptions to professional publications that relate to your business or profession. Free h&r block tax software 2011 Educational expenses. Free h&r block tax software 2011   Generally, educational expenses are considered to be personal expenses and are not deductible. Free h&r block tax software 2011 However, under some circumstances, educational expenses are deductible as business expenses. Free h&r block tax software 2011   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Free h&r block tax software 2011   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Free h&r block tax software 2011 These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Free h&r block tax software 2011   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Free h&r block tax software 2011    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Free h&r block tax software 2011 However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Free h&r block tax software 2011 These benefits are explained in Publication 970. Free h&r block tax software 2011 Foreign service representation expenses. Free h&r block tax software 2011   If you are an employee of the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Free h&r block tax software 2011 If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Free h&r block tax software 2011 You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Free h&r block tax software 2011 The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Free h&r block tax software 2011    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Free h&r block tax software 2011 These rules are explained in Publication 463. Free h&r block tax software 2011 Representation expenses. Free h&r block tax software 2011   These are expenses that further the interest of the United States abroad. Free h&r block tax software 2011 They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Free h&r block tax software 2011 They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Free h&r block tax software 2011   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Free h&r block tax software 2011 These regulations are available on the Internet at www. Free h&r block tax software 2011 state. Free h&r block tax software 2011 gov/m/a/als. Free h&r block tax software 2011 Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Free h&r block tax software 2011 ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Free h&r block tax software 2011 Impairment-related work expenses. Free h&r block tax software 2011   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Free h&r block tax software 2011 Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Free h&r block tax software 2011 These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Free h&r block tax software 2011 They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Free h&r block tax software 2011 Loss on conversion of U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 dollars into foreign currency. Free h&r block tax software 2011   The conversion of U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Free h&r block tax software 2011 Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Free h&r block tax software 2011 For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Free h&r block tax software 2011 The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Free h&r block tax software 2011 You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Free h&r block tax software 2011 For each trip away from home, the dates you left and returned and the number of days spent on business. Free h&r block tax software 2011 The destination or area of your travel, described by the name of the city, town, or similar designation. Free h&r block tax software 2011 The business reason for your travel or the business benefit gained or expected to be gained from your travel. Free h&r block tax software 2011 How to record your expenses. Free h&r block tax software 2011   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Free h&r block tax software 2011 They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Free h&r block tax software 2011 You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Free h&r block tax software 2011   Each expense should be recorded separately in your records. Free h&r block tax software 2011 However, some items can be totaled in reasonable categories. Free h&r block tax software 2011 You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Free h&r block tax software 2011 You may record tips separately or with the cost of the service. Free h&r block tax software 2011    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Free h&r block tax software 2011 It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Free h&r block tax software 2011 Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Free h&r block tax software 2011 It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Free h&r block tax software 2011    A canceled check by itself does not prove a business cost. Free h&r block tax software 2011 You must have other evidence to show that the check was used for a business purpose. Free h&r block tax software 2011 Your records must be timely. Free h&r block tax software 2011   Record the elements for the expense in your account book or other record at or near the time of the expense. Free h&r block tax software 2011 A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Free h&r block tax software 2011 Confidential information. Free h&r block tax software 2011   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Free h&r block tax software 2011 However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Free h&r block tax software 2011 How To Report Business Expenses As a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Free h&r block tax software 2011 If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Free h&r block tax software 2011 However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Free h&r block tax software 2011 If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Free h&r block tax software 2011 Form 2106 or Form 2106-EZ. Free h&r block tax software 2011   You must complete Form 2106 or 2106-EZ to deduct your expenses. Free h&r block tax software 2011 Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Free h&r block tax software 2011 Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Free h&r block tax software 2011 Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Free h&r block tax software 2011 Form 2106-EZ. Free h&r block tax software 2011   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Free h&r block tax software 2011 You can use Form 2106-EZ if you meet both of the following conditions. Free h&r block tax software 2011 You are not reimbursed by your employer for any expenses. Free h&r block tax software 2011 (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Free h&r block tax software 2011 ) If you claim car expenses, you use the standard mileage rate. Free h&r block tax software 2011 Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Free h&r block tax software 2011 Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Free h&r block tax software 2011 However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government employee. Free h&r block tax software 2011 To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Free h&r block tax software 2011 Closely related to the start of work. Free h&r block tax software 2011   The move must be closely related, both in time and in place, to the start of work at the new location. Free h&r block tax software 2011 In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Free h&r block tax software 2011   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Free h&r block tax software 2011 A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Free h&r block tax software 2011 Distance test. Free h&r block tax software 2011   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Free h&r block tax software 2011 If you did not have an old job location, your new job location must be at least 50 miles from your former home. Free h&r block tax software 2011 Time test. Free h&r block tax software 2011   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Free h&r block tax software 2011 Deductible moving expenses. Free h&r block tax software 2011   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Free h&r block tax software 2011    The cost of your meals is not a deductible moving expense. Free h&r block tax software 2011   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Free h&r block tax software 2011 For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Free h&r block tax software 2011 Expenses must be reasonable. Free h&r block tax software 2011   You can deduct only those expenses that are reasonable for the circumstances of your move. Free h&r block tax software 2011 For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Free h&r block tax software 2011 Members of your household. Free h&r block tax software 2011   A member of your household includes anyone who has both your former home and new home as his or her home. Free h&r block tax software 2011 It does not include a tenant or employee unless you can claim that person as a dependent. Free h&r block tax software 2011 Retirees. Free h&r block tax software 2011   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Free h&r block tax software 2011 You do not have to meet the time test described earlier. Free h&r block tax software 2011 Survivors. Free h&r block tax software 2011   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Free h&r block tax software 2011 The move must begin within 6 months after the decedent's death. Free h&r block tax software 2011 It must be from the decedent's former home outside the United States, and that home must also have been your home. Free h&r block tax software 2011 You do not have to meet the time test described earlier. Free h&r block tax software 2011 How to report moving expenses. Free h&r block tax software 2011   Use Form 3903 to report your moving expenses and figure your allowable deduction. Free h&r block tax software 2011 Claim the deduction as an adjustment to income on Form 1040. Free h&r block tax software 2011 (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Free h&r block tax software 2011 ) Reimbursements. Free h&r block tax software 2011   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Free h&r block tax software 2011 You also must include in gross income reimbursements paid to you under a nonaccountable plan. Free h&r block tax software 2011 However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Free h&r block tax software 2011 Additional information. Free h&r block tax software 2011   For additional information about moving expenses, see Publication 521. Free h&r block tax software 2011 Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Free h&r block tax software 2011 Contributions. Free h&r block tax software 2011   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Free h&r block tax software 2011 You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Free h&r block tax software 2011 For more information, see Publication 526, Charitable Contributions. Free h&r block tax software 2011 Real estate tax and home mortgage interest. Free h&r block tax software 2011   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Free h&r block tax software 2011 You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Free h&r block tax software 2011 Example. Free h&r block tax software 2011 Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Free h&r block tax software 2011 During the year, Adam used the allowance, with other funds, to provide a home for himself. Free h&r block tax software 2011 His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Free h&r block tax software 2011 Adam did not have any other expenses related to providing a home for himself. Free h&r block tax software 2011 Adam must reduce his deductions for home mortgage interest and real estate taxes. Free h&r block tax software 2011 He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Free h&r block tax software 2011 The result is 3/4. Free h&r block tax software 2011 Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Free h&r block tax software 2011 He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Free h&r block tax software 2011 Exception to the reduction. Free h&r block tax software 2011   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Free h&r block tax software 2011 Required statement. Free h&r block tax software 2011   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Free h&r block tax software 2011 The statement must contain all of the following information. Free h&r block tax software 2011 The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Free h&r block tax software 2011 The amount of otherwise deductible expenses attributable to each type of tax-free income. Free h&r block tax software 2011 The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Free h&r block tax software 2011 An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Free h&r block tax software 2011   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Free h&r block tax software 2011 Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 income tax liability or deduct them as an itemized deduction when figuring your taxable income. Free h&r block tax software 2011 Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Free h&r block tax software 2011 Foreign tax credit. Free h&r block tax software 2011   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Free h&r block tax software 2011 If you choose to figure a credit against your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 income tax return. Free h&r block tax software 2011    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Free h&r block tax software 2011 If all your foreign income is exempt from U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 tax, you will not be able to claim a foreign tax credit. Free h&r block tax software 2011   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Free h&r block tax software 2011 Exemption from limit. Free h&r block tax software 2011   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Free h&r block tax software 2011 Your only foreign income is passive income, such as interest, dividends, and royalties. Free h&r block tax software 2011 The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Free h&r block tax software 2011 The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Free h&r block tax software 2011 If you make the election, you can claim a foreign tax credit without filing Form 1116. Free h&r block tax software 2011 However, you cannot carry back or carry over any unused foreign tax to or from this year. Free h&r block tax software 2011 See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Free h&r block tax software 2011 Foreign tax deduction. Free h&r block tax software 2011   If you choose to deduct all foreign income taxes on your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 income tax return, itemize the deduction on Schedule A (Form 1040). Free h&r block tax software 2011 You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Free h&r block tax software 2011 Example. Free h&r block tax software 2011 Dennis and Christina are married and live and work in Country X. Free h&r block tax software 2011 Dennis works for the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government and Christina is employed by a private company. Free h&r block tax software 2011 They pay income tax to Country X on Christina's income only. Free h&r block tax software 2011 Dennis and Christina file a joint tax return and exclude all of Christina's income. Free h&r block tax software 2011 They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Free h&r block tax software 2011 Deduction for other foreign taxes. Free h&r block tax software 2011   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Free h&r block tax software 2011 You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Free h&r block tax software 2011   You can deduct real property taxes you pay that are imposed on you by a foreign country. Free h&r block tax software 2011 You take this deduction on Schedule A (Form 1040). Free h&r block tax software 2011 You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Free h&r block tax software 2011 More information. Free h&r block tax software 2011   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Free h&r block tax software 2011 Local (Foreign) Tax Return As a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Free h&r block tax software 2011 Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Free h&r block tax software 2011 Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Free h&r block tax software 2011 Review the treaty text carefully to determine whether your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Government remuneration is taxable in the host country. Free h&r block tax software 2011 You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Free h&r block tax software 2011 If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Free h&r block tax software 2011 If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Free h&r block tax software 2011 Most income tax treaties contain an article providing relief from double taxation. Free h&r block tax software 2011 Many treaties contain special foreign tax credit rules for U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 citizens who are residents of a treaty country. Free h&r block tax software 2011 For more information about the foreign tax credit, see Foreign Taxes, earlier. Free h&r block tax software 2011 Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Free h&r block tax software 2011 For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Free h&r block tax software 2011 Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Free h&r block tax software 2011 Check with the appropriate U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Embassy for more information. Free h&r block tax software 2011 Double Withholding If your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 income tax return on this income. Free h&r block tax software 2011 Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Free h&r block tax software 2011 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Free h&r block tax software 2011 By selecting the method that is best for you, you will have quick and easy access to tax help. Free h&r block tax software 2011 Free help with your tax return. Free h&r block tax software 2011   Free help in preparing your return is available nationwide from IRS-certified volunteers. Free h&r block tax software 2011 The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Free h&r block tax software 2011 The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Free h&r block tax software 2011 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free h&r block tax software 2011 Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Free h&r block tax software 2011 To find the nearest VITA or TCE site, visit IRS. Free h&r block tax software 2011 gov or call 1-800-906-9887 or 1-800-829-1040. Free h&r block tax software 2011   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free h&r block tax software 2011 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free h&r block tax software 2011 aarp. Free h&r block tax software 2011 org/money/taxaide or call 1-888-227-7669. Free h&r block tax software 2011   For more information on these programs, go to IRS. Free h&r block tax software 2011 gov and enter “VITA” in the search box. Free h&r block tax software 2011 Internet. Free h&r block tax software 2011 You can access the IRS website at IRS. Free h&r block tax software 2011 gov 24 hours a day, 7 days a week to: E-file your return. Free h&r block tax software 2011 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Free h&r block tax software 2011 Check the status of your 2012 refund. Free h&r block tax software 2011 Go to IRS. Free h&r block tax software 2011 gov and click on Where’s My Refund. Free h&r block tax software 2011 Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Free h&r block tax software 2011 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free h&r block tax software 2011 Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free h&r block tax software 2011 Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Free h&r block tax software 2011 Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Free h&r block tax software 2011 So in a change from previous filing seasons, you won't get an estimated refund date right away. Free h&r block tax software 2011 Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Free h&r block tax software 2011 You can obtain a free transcript online at IRS. Free h&r block tax software 2011 gov by clicking on Order a Return or Account Transcript under “Tools. Free h&r block tax software 2011 ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Free h&r block tax software 2011 You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Free h&r block tax software 2011 Download forms, including talking tax forms, instructions, and publications. Free h&r block tax software 2011 Order IRS products. Free h&r block tax software 2011 Research your tax questions. Free h&r block tax software 2011 Search publications by topic or keyword. Free h&r block tax software 2011 Use the Internal Revenue Code, regulations, or other official guidance. Free h&r block tax software 2011 View Internal Revenue Bulletins (IRBs) published in the last few years. Free h&r block tax software 2011 Figure your withholding allowances using the IRS Withholding Calculator at www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/individuals. Free h&r block tax software 2011 Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Free h&r block tax software 2011 gov by typing Alternative Minimum Tax Assistant in the search box. Free h&r block tax software 2011 Sign up to receive local and national tax news by email. Free h&r block tax software 2011 Get information on starting and operating a small business. Free h&r block tax software 2011 Phone. Free h&r block tax software 2011 Many services are available by phone. Free h&r block tax software 2011   Ordering forms, instructions, and publications. Free h&r block tax software 2011 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Free h&r block tax software 2011 You should receive your order within 10 days. Free h&r block tax software 2011 Asking tax questions. Free h&r block tax software 2011 Call the IRS with your tax questions at 1-800-829-1040. Free h&r block tax software 2011 Solving problems. Free h&r block tax software 2011 You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Free h&r block tax software 2011 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Free h&r block tax software 2011 Call your local Taxpayer Assistance Center for an appointment. Free h&r block tax software 2011 To find the number, go to www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free h&r block tax software 2011 TTY/TDD equipment. Free h&r block tax software 2011 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Free h&r block tax software 2011 The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Free h&r block tax software 2011 These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Free h&r block tax software 2011 gsa. Free h&r block tax software 2011 gov/fedrelay. Free h&r block tax software 2011 TeleTax topics. Free h&r block tax software 2011 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Free h&r block tax software 2011 Checking the status of your 2012 refund. Free h&r block tax software 2011 To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Free h&r block tax software 2011 Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Free h&r block tax software 2011 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free h&r block tax software 2011 Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free h&r block tax software 2011 Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Free h&r block tax software 2011 Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Free h&r block tax software 2011 Outside the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 If you are outside the United States, taxpayer assistance is available at the following U. Free h&r block tax software 2011 S Embassies or consulate. Free h&r block tax software 2011 Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Free h&r block tax software 2011 If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Free h&r block tax software 2011 If you are in a U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Virgin Islands) and have a tax question, you can call 1-800-829-1040. Free h&r block tax software 2011 Evaluating the quality of our telephone services. Free h&r block tax software 2011 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Free h&r block tax software 2011 One method is for a second IRS representative to listen in on or record random telephone calls. Free h&r block tax software 2011 Another is to ask some callers to complete a short survey at the end of the call. Free h&r block tax software 2011 Walk-in. Free h&r block tax software 2011 Some products and services are available on a walk-in basis. Free h&r block tax software 2011   Products. Free h&r block tax software 2011 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free h&r block tax software 2011 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Free h&r block tax software 2011 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Free h&r block tax software 2011 Services. Free h&r block tax software 2011 You can walk in to your local TAC most business days for personal, face-to-face tax help. Free h&r block tax software 2011 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Free h&r block tax software 2011 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Free h&r block tax software 2011 No appointment is necessary—just walk in. Free h&r block tax software 2011 Before visiting, check www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/localcontacts for hours of operation and services provided. Free h&r block tax software 2011 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Free h&r block tax software 2011 You can leave a message and a representative will call you back within 2 business days. Free h&r block tax software 2011 All other issues will be handled without an appointment. Free h&r block tax software 2011 To call your local TAC, go to  www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free h&r block tax software 2011 Outside the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Embassies and consulates. Free h&r block tax software 2011 Mail. Free h&r block tax software 2011 You can send your order for forms, instructions, and publications to the address below. Free h&r block tax software 2011 You should receive a response within 10 days after your request is received. Free h&r block tax software 2011  Internal Revenue Service 1201 N. Free h&r block tax software 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 If you are outside the United States, you can get tax assistance by writing to the address below. Free h&r block tax software 2011  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Free h&r block tax software 2011   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free h&r block tax software 2011 Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Free h&r block tax software 2011 TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Free h&r block tax software 2011 Remember, the worst thing you can do is nothing at all. Free h&r block tax software 2011   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Free h&r block tax software 2011 You face (or your business is facing) an immediate threat of adverse action. Free h&r block tax software 2011 You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Free h&r block tax software 2011   If you qualify for help, they will do everything they can to get your problem resolved. Free h&r block tax software 2011 You will be assigned to one advocate who will be with you at every turn. Free h&r block tax software 2011 TAS has offices in every state, the District of Columbia, and Puerto Rico. Free h&r block tax software 2011 Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Free h&r block tax software 2011 And its services are always free. Free h&r block tax software 2011   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Free h&r block tax software 2011 The TAS tax toolkit at www. Free h&r block tax software 2011 TaxpayerAdvocate. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov can help you understand these rights. Free h&r block tax software 2011   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/advocate. Free h&r block tax software 2011 You can also call the toll-free number at 1-877-777-4778. Free h&r block tax software 2011 Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Free h&r block tax software 2011 These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Free h&r block tax software 2011 gsa. Free h&r block tax software 2011 gov/fedrelay. Free h&r block tax software 2011   TAS also handles large-scale or systemic problems that affect many taxpayers. Free h&r block tax software 2011 If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/advocate. Free h&r block tax software 2011    Outside the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Free h&r block tax software 2011 You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Free h&r block tax software 2011 R. Free h&r block tax software 2011 00968-8000 Low Income Taxpayer Clinics (LITCs). Free h&r block tax software 2011   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Free h&r block tax software 2011 Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Free h&r block tax software 2011 These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Free h&r block tax software 2011 Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Free h&r block tax software 2011 For more information and to find a clinic near you, see the LITC page on www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Free h&r block tax software 2011 This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Free h&r block tax software 2011 Free tax services. Free h&r block tax software 2011   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Free h&r block tax software 2011 Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Free h&r block tax software 2011 The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Free h&r block tax software 2011 The majority of the information and services listed in this publication are available to you free of charge. Free h&r block tax software 2011 If there is a fee associated with a resource or service, it is listed in the publication. Free h&r block tax software 2011   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Free h&r block tax software 2011 DVD for tax products. Free h&r block tax software 2011 You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Free h&r block tax software 2011 Prior-year forms, instructions, and publications. Free h&r block tax software 2011 Tax Map: an electronic research tool and finding aid. Free h&r block tax software 2011 Tax law frequently asked questions. Free h&r block tax software 2011 Tax Topics from the IRS telephone response system. Free h&r block tax software 2011 Internal Revenue Code—Title 26 of the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Code. Free h&r block tax software 2011 Links to other Internet-based tax research materials. Free h&r block tax software 2011 Fill-in, print, and save features for most tax forms. Free h&r block tax software 2011 Internal Revenue Bulletins. Free h&r block tax software 2011 Toll-free and email technical support. Free h&r block tax software 2011 Two releases during the year. Free h&r block tax software 2011  – The first release will ship the beginning of January 2013. Free h&r block tax software 2011  – The final release will ship the beginning of March 2013. Free h&r block tax software 2011 Purchase the DVD from National Technical Information Service (NTIS) at www. Free h&r block tax software 2011 irs. Free h&r block tax software 2011 gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Free h&r block tax software 2011 Prev  Up  Next   Home   More Online Publications
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The Free H&r Block Tax Software 2011

Free h&r block tax software 2011 9. Free h&r block tax software 2011   Education Exception to Additional Tax on Early IRA Distributions Table of Contents Introduction Who Is Eligible Figuring the Amount Not Subject to the 10% Tax Reporting Early Distributions Introduction Generally, if you take a distribution from your IRA before you reach age 59½, you must pay a 10% additional tax on the early distribution. Free h&r block tax software 2011 This applies to any IRA you own, whether it is a traditional IRA (including a SEP-IRA), a Roth IRA, or a SIMPLE IRA. Free h&r block tax software 2011 The additional tax on an early distribution from a SIMPLE IRA may be as high as 25%. Free h&r block tax software 2011 See Publication 560, Retirement Plans for Small Business, for information on SEP-IRAs, and Publication 590, for information about all other IRAs. Free h&r block tax software 2011 However, you can take distributions from your IRAs for qualified higher education expenses without having to pay the 10% additional tax. Free h&r block tax software 2011 You may owe income tax on at least part of the amount distributed, but you may not have to pay the 10% additional tax. Free h&r block tax software 2011 Generally, if the taxable part of the distribution is less than or equal to the adjusted qualified education expenses (AQEE), none of the distribution is subject to the additional tax. Free h&r block tax software 2011 If the taxable part of the distribution is more than the AQEE, only the excess is subject to the additional tax. Free h&r block tax software 2011 Who Is Eligible You can take a distribution from your IRA before you reach age 59½ and not have to pay the 10% additional tax if, for the year of the distribution, you pay qualified education expenses for: yourself, your spouse, or your or your spouse's child, foster child, adopted child, or descendant of any of them. Free h&r block tax software 2011 Qualified education expenses. Free h&r block tax software 2011   For purposes of the 10% additional tax, these expenses are tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Free h&r block tax software 2011 They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. Free h&r block tax software 2011   In addition, if the student is at least a half-time student, room and board are qualified education expenses. Free h&r block tax software 2011   The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Free h&r block tax software 2011 The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Free h&r block tax software 2011 The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Free h&r block tax software 2011 You will need to contact the eligible educational institution for qualified room and board costs. Free h&r block tax software 2011 Eligible educational institution. Free h&r block tax software 2011   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Department of Education. Free h&r block tax software 2011 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Free h&r block tax software 2011 The educational institution should be able to tell you if it is an eligible educational institution. Free h&r block tax software 2011   Certain educational institutions located outside the United States also participate in the U. Free h&r block tax software 2011 S. Free h&r block tax software 2011 Department of Education's Federal Student Aid (FSA) programs. Free h&r block tax software 2011 Half-time student. Free h&r block tax software 2011   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic work load for the course of study the student is pursuing as determined under the standards of the school where the student is enrolled. Free h&r block tax software 2011 Figuring the Amount Not Subject to the 10% Tax To determine the amount of your distribution that is not subject to the 10% additional tax, first figure your adjusted qualified education expenses. Free h&r block tax software 2011 You do this by reducing your total qualified education expenses by any tax-free educational assistance, which includes: Expenses used to figure the tax-free portion of distributions from a Coverdell education savings account (ESA) (see Distributions in chapter 7, Coverdell Education Savings Account), The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Free h&r block tax software 2011 Do not reduce the qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance given to either the student or the individual making the withdrawal, or A withdrawal from personal savings (including savings from a qualified tuition program (QTP)). Free h&r block tax software 2011 If your IRA distribution is equal to or less than your adjusted qualified education expenses, you are not subject to the 10% additional tax. Free h&r block tax software 2011 Example 1. Free h&r block tax software 2011 In 2013, Erin (age 32) took a year off from teaching to attend graduate school full-time. Free h&r block tax software 2011 She paid $5,800 of qualified education expenses from the following sources. Free h&r block tax software 2011   Employer-provided educational assistance  (tax free) $5,000     Early distribution from IRA (includes $500 taxable earnings) 3,200           Before Erin can determine if she must pay the 10% additional tax on her IRA distribution, she must reduce her total qualified education expenses. Free h&r block tax software 2011   Total qualified education expenses $5,800     Minus: Tax-free educational assistance −5,000     Equals: Adjusted qualified  education expenses (AQEE) $ 800   Because Erin's AQEE ($800) are more than the taxable portion of her IRA distribution ($500), she does not have to pay the 10% additional tax on any part of this distribution. Free h&r block tax software 2011 However, she must include the $500 taxable earnings in her gross income subject to income tax. Free h&r block tax software 2011 Example 2. Free h&r block tax software 2011 Assume the same facts as in Example 1 , except that Erin deducted some of the contributions to her IRA, so the taxable part of her early distribution is higher by $1,000. Free h&r block tax software 2011 This must be included in her income subject to income tax. Free h&r block tax software 2011 The taxable part of Erin's IRA distribution ($1,000) is larger than her $800 AQEE. Free h&r block tax software 2011 Therefore, she must pay the 10% additional tax on $200, the taxable part of her distribution ($1,000) that is more than her qualified education expenses ($800). Free h&r block tax software 2011 She does not have to pay the 10% additional tax on the remaining $800 of her taxable distribution. Free h&r block tax software 2011 Reporting Early Distributions By January 31, 2014, the payer of your IRA distribution should send you Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free h&r block tax software 2011 The information on this form will help you determine how much of your distribution is taxable for income tax purposes and how much is subject to the 10% additional tax. Free h&r block tax software 2011 If you received an early distribution from your IRA, you must report the taxable earnings on Form 1040, line 15b (Form 1040NR, line 16b). Free h&r block tax software 2011 Then, if you qualify for an exception for qualified higher education expenses, you must file Form 5329 to show how much, if any, of your early distribution is subject to the 10% additional tax. Free h&r block tax software 2011 See the Instructions for Form 5329, Part I, for help in completing the form and entering the results on Form 1040 or 1040NR. Free h&r block tax software 2011 There are many other situations in which Form 5329 is required. Free h&r block tax software 2011 If, during 2013, you had other distributions from IRAs or qualified retirement plans, or have made excess contributions to certain tax-favored accounts, see the instructions for line 58 (Form 1040) or line 56 (Form 1040NR) to determine if you must file Form 5329. Free h&r block tax software 2011 Prev  Up  Next   Home   More Online Publications