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Free turbotax 2012 download Index Symbols 403(b) plans, 403(b) Plans A Accounting methods, Nonaccrual-Experience Method Acquisition date: Special depreciation allowance, Acquisition date test. Free turbotax 2012 download Special Liberty Zone depreciation allowance, Acquisition date test. Free turbotax 2012 download Annuities, tax-sheltered 403(b) plans, 403(b) Plans Assistance (see Tax help) Automobile (see Passenger automobile) B Bonds: New York Liberty, Tax Incentives for New York Liberty Zone Qualified zone academy, Issuance of Qualified Zone Academy Bonds C Car (see Passenger automobile) Car expenses, Car Expenses Catch-up contributions, 403(b), 403(b) Plans Child and dependent care, Child and Dependent Care Expenses Church employees and ministers, Years of service for church employees and ministers. Free turbotax 2012 download Clean-fuel vehicle, Electric and Clean-Fuel Vehicles Comments, Comments and suggestions. Free turbotax 2012 download Credit: Child and dependent care, Child and Dependent Care Expenses Credit for pension plan startup, Credit For Pension Plan Startup Costs Electric vehicles, Electric and Clean-Fuel Vehicles Indian employment, Indian Employment Credit Extended Renewable electricity production, Renewable Electricity Production Credit Welfare-to-work, Welfare-to-Work Credit Extended Work opportunity, Work Opportunity Credit Expanded in New York Liberty Zone , Work Opportunity Credit Extended D Deduction limit, automobile, Passenger Automobiles Deemed IRAs, Deemed IRAs Depletion, Depletion Depreciation: New property, Special Depreciation Allowance Property on reservations, Depreciation of Property Used on Indian Reservations Special depreciation allowance, Special Depreciation Allowance Special Liberty Zone depreciation allowance, Special Liberty Zone Depreciation Allowance Supplement to Publication 946, Depreciation E Election: Deemed not to claim special allowance, Deemed election. Free turbotax 2012 download Not to claim special allowance, Election Not To Claim the Allowance Not to claim special Liberty Zone allowance, Election Not To Claim the Liberty Zone Allowance Electric vehicle, Electric and Clean-Fuel Vehicles Eligible educator, Deduction for Educator Expenses Estimated tax payments, Adjusting your withholding or estimated tax payments for 2002. Free turbotax 2012 download Excepted property: Special depreciation allowance, Excepted Property Special Liberty Zone depreciation allowance, Excepted property. Free turbotax 2012 download F Foreign missionaries, Foreign missionaries. Free turbotax 2012 download Form 1099, Electronic Form 1099 Free tax services, How To Get Tax Help H Help (see Tax help) I Indian employment credit, Indian Employment Credit Extended Indian reservations, depreciation rules, Depreciation of Property Used on Indian Reservations IRAs, Deemed IRAs L Leasehold improvement property, defined, Qualified leasehold improvement property. Free turbotax 2012 download Liberty Zone leasehold improvement property: Defined, Qualified New York Liberty Zone leasehold improvement property. Free turbotax 2012 download Depreciated as 5-year property, Liberty Zone Leasehold Improvement Property Returns filed before June 1, 2002, Returns Filed Before June 1, 2002 Liberty Zone property: Increased section 179 dollar limit, Increased Dollar Limit Reduced section 179 dollar limit, Reduced Dollar Limit M Marginal production, Depletion More information (see Tax help) N Net operating losses, New 5-Year Carryback Rule for Net Operating Losses (NOLs), New 5-Year Carryback Rule for Net Operating Losses (NOLs) New York Liberty Zone: Area defined, New York Liberty Zone Benefits Leasehold improvement property, Liberty Zone Leasehold Improvement Property Section 179 deduction, Increased Section 179 Deduction Special depreciation, Special Liberty Zone Depreciation Allowance Tax incentives, Tax Incentives for New York Liberty Zone Work opportunity credit, Work Opportunity Credit Expanded in New York Liberty Zone NOLs, New 5-Year Carryback Rule for Net Operating Losses (NOLs), New 5-Year Carryback Rule for Net Operating Losses (NOLs) Nonaccrual-experience method, Nonaccrual-Experience Method Nonresidential real property, Nonresidential real property and residential rental property. Free turbotax 2012 download P Passenger automobile, limit on, Passenger Automobiles Pension plan startup costs, Credit For Pension Plan Startup Costs Placed in service date, Placed in service date test. Free turbotax 2012 download , Placed in service date test. Free turbotax 2012 download Plans, tax-sheltered annuities, 403(b) plans, 403(b) Plans Publications (see Tax help) Q Qualified leasehold improvement property, defined, Qualified leasehold improvement property. Free turbotax 2012 download Qualified Liberty Zone leasehold improvement property, Qualified New York Liberty Zone leasehold improvement property. Free turbotax 2012 download Qualified property: Increased section 179 deduction, Qualified property. Free turbotax 2012 download Special depreciation allowance, Qualified Property Special Liberty Zone depreciation allowance, Qualified Liberty Zone Property Qualified zone academy bonds, Issuance of Qualified Zone Academy Bonds R Recapture, section 179 deduction, Recapture Rules Renewable electricity, Renewable Electricity Production Credit Residential rental property, Nonresidential real property and residential rental property. Free turbotax 2012 download Rollovers, 403(b) plans, Rollovers to and from 403(b) plans. Free turbotax 2012 download S Section 1256 contracts, Wash Sale Rules Do Not Apply to Section 1256 Contracts Section 179 deduction: Increased dollar limit for Liberty Zone property, Increased Dollar Limit Reduced dollar limit for Liberty Zone property, Reduced Dollar Limit Returns filed before June 1, 2002, Returns Filed Before June 1, 2002 Simplified employee pensions (SEPs), Simplified Employee Pensions (SEPs) Special depreciation allowance: Election not to claim, Election Not To Claim the Allowance Excepted property, Excepted Property Qualified property, Qualified Property Requirements for claiming, Qualified Property Returns filed before June 1, 2002, Rules for Returns Filed Before June 1, 2002 Tests for qualification, Tests To Be Met Special Liberty Zone depreciation allowance: Election not to claim, Election Not To Claim the Liberty Zone Allowance Excepted property, Excepted property. Free turbotax 2012 download Qualified property, Qualified Liberty Zone Property Requirements for claiming, Qualified Liberty Zone Property Returns filed before June 1, 2002, Returns filed before June 1, 2002. Free turbotax 2012 download Tests for qualification, Tests to be met. Free turbotax 2012 download Substantial use, special Liberty Zone depreciation allowance, Substantial use test. Free turbotax 2012 download Suggestions, Comments and suggestions. Free turbotax 2012 download T Tax help, How To Get Tax Help Tax-sheltered annuity plans, 403(b) plans, 403(b) Plans Taxpayer Advocate, Contacting your Taxpayer Advocate. Free turbotax 2012 download Teachers, classroom materials, Deduction for Educator Expenses Tests for qualification, Tests To Be Met, Tests to be met. Free turbotax 2012 download TTY/TDD information, How To Get Tax Help W Wash sale rules, Wash Sale Rules Do Not Apply to Section 1256 Contracts Welfare-to-work credit, Welfare-to-Work Credit Extended Withholding, Adjusting your withholding or estimated tax payments for 2002. Free turbotax 2012 download Work opportunity credit, Work Opportunity Credit Expanded in New York Liberty Zone , Work Opportunity Credit Extended Y Years of service, church employees and ministers, Years of service for church employees and ministers. Free turbotax 2012 download Prev  Up     Home   More Online Publications
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Understanding your CP504B Notice

You have an unpaid amount due on your account. If you do not pay the amount due immediately, the
IRS will seize (levy) certain property or rights to property and apply it to pay the
amount you owe.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully — it explains your due date, amount due, and payment options.
  • Make your payment by your due date. Go to the payments page to find out more about your payment options.

You may want to...


Answers to Common Questions

What is the notice telling me?
This notice is telling you that we intend to issue a levy against certain property or rights to property because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. It is also telling you that we will begin searching for other assets on which to issue a levy. We may also file a Federal Tax Lien, if we have not already done so.

What do I have to do?
Pay the amount due shown on the notice. Mail us your payment in the envelope we sent you. Include the bottom part of the notice to make sure we correctly credit your account.

If you can't pay the whole amount now, call us at the number printed at the top of the notice to see if you qualify for an installment agreement.

How much time do I have?
You should pay your balance due by the due date shown on your notice.

What happens if I don't pay or contact the IRS?
If you don't pay the amount due, we may send you a notice giving you a right to a hearing before the IRS Office of Appeals if you have not already received such a notice. We may then seize ("levy") your property or rights to property. Property includes:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits

This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).

If you don't pay the amount due or call us to make payment arrangements, we can file a Notice of Federal Tax Lien on your property at any time, if we haven’t already done so.

If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.

Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.

What if I don't agree or have already taken corrective action?
If you do not agree with this notice, contact us immediately at the number printed at the top of the notice. We will do our best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 05-Mar-2014

The Free Turbotax 2012 Download

Free turbotax 2012 download 3. Free turbotax 2012 download   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. Free turbotax 2012 download Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. Free turbotax 2012 download An exclusion from gross income is generally income you receive that is not included in your U. Free turbotax 2012 download S. Free turbotax 2012 download income and is not subject to U. Free turbotax 2012 download S. Free turbotax 2012 download tax. Free turbotax 2012 download This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. Free turbotax 2012 download Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. Free turbotax 2012 download Useful Items - You may want to see: Publication 54 Tax Guide for U. Free turbotax 2012 download S. Free turbotax 2012 download Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. Free turbotax 2012 download Resident Aliens Resident aliens may be able to exclude the following items from their gross income. Free turbotax 2012 download Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. Free turbotax 2012 download The exclusion is $97,600 in 2013. Free turbotax 2012 download In addition, you may be able to exclude or deduct certain foreign housing amounts. Free turbotax 2012 download You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. Free turbotax 2012 download For more information, see Publication 54. Free turbotax 2012 download Foreign country. Free turbotax 2012 download    A foreign country is any territory under the sovereignty of a government other than that of the United States. Free turbotax 2012 download   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. Free turbotax 2012 download It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. Free turbotax 2012 download   The term “foreign country” does not include U. Free turbotax 2012 download S. Free turbotax 2012 download possessions or territories. Free turbotax 2012 download It does not include the Antarctic region. Free turbotax 2012 download Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. Free turbotax 2012 download Interest Income Interest income that is not connected with a U. Free turbotax 2012 download S. Free turbotax 2012 download trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. Free turbotax 2012 download State and local government obligations. Free turbotax 2012 download   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. Free turbotax 2012 download S. Free turbotax 2012 download possession, generally is not included in income. Free turbotax 2012 download However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. Free turbotax 2012 download Portfolio interest. Free turbotax 2012 download   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. Free turbotax 2012 download To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. Free turbotax 2012 download Note. Free turbotax 2012 download For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. Free turbotax 2012 download Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. Free turbotax 2012 download Obligations in registered form. Free turbotax 2012 download   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. Free turbotax 2012 download   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. Free turbotax 2012 download   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. Free turbotax 2012 download For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. Free turbotax 2012 download Obligations not in registered form. Free turbotax 2012 download    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. Free turbotax 2012 download A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. Free turbotax 2012 download   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. Free turbotax 2012 download In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. Free turbotax 2012 download Interest that does not qualify as portfolio interest. Free turbotax 2012 download   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. Free turbotax 2012 download You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. Free turbotax 2012 download Contingent interest. Free turbotax 2012 download   Portfolio interest does not include contingent interest. Free turbotax 2012 download Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. Free turbotax 2012 download For exceptions, see Internal Revenue Code section 871(h)(4)(C). Free turbotax 2012 download Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. Free turbotax 2012 download Related persons. Free turbotax 2012 download   Related persons include the following. Free turbotax 2012 download Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Free turbotax 2012 download ), and lineal descendants (children, grandchildren, etc. Free turbotax 2012 download ). Free turbotax 2012 download Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. Free turbotax 2012 download Certain corporations, partnerships, and other entities. Free turbotax 2012 download For details, see Nondeductible Loss in chapter 2 of Publication 544. Free turbotax 2012 download Exception for existing debt. Free turbotax 2012 download   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. Free turbotax 2012 download Dividend Income The following dividend income is exempt from the 30% tax. Free turbotax 2012 download Certain dividends paid by foreign corporations. Free turbotax 2012 download   There is no 30% tax on U. Free turbotax 2012 download S. Free turbotax 2012 download source dividends you receive from a foreign corporation. Free turbotax 2012 download See Second exception under Dividends in chapter 2 for how to figure the amount of U. Free turbotax 2012 download S. Free turbotax 2012 download source dividends. Free turbotax 2012 download Certain interest-related dividends. Free turbotax 2012 download   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. Free turbotax 2012 download The mutual fund will designate in writing which dividends are interest-related dividends. Free turbotax 2012 download Certain short-term capital gain dividends. Free turbotax 2012 download   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. Free turbotax 2012 download The mutual fund will designate in writing which dividends are short-term capital gain dividends. Free turbotax 2012 download This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. Free turbotax 2012 download Services Performed for Foreign Employer If you were paid by a foreign employer, your U. Free turbotax 2012 download S. Free turbotax 2012 download source income may be exempt from U. Free turbotax 2012 download S. Free turbotax 2012 download tax, but only if you meet one of the situations discussed next. Free turbotax 2012 download Employees of foreign persons, organizations, or offices. Free turbotax 2012 download   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. Free turbotax 2012 download S. Free turbotax 2012 download sources and is tax exempt if you meet all three of the following conditions. Free turbotax 2012 download You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. Free turbotax 2012 download S. Free turbotax 2012 download corporation, a U. Free turbotax 2012 download S. Free turbotax 2012 download partnership, or a U. Free turbotax 2012 download S. Free turbotax 2012 download citizen or resident. Free turbotax 2012 download You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. Free turbotax 2012 download Your pay for these services is not more than $3,000. Free turbotax 2012 download If you do not meet all three conditions, your income from personal services performed in the United States is U. Free turbotax 2012 download S. Free turbotax 2012 download source income and is taxed according to the rules in chapter 4. Free turbotax 2012 download   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. Free turbotax 2012 download To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. Free turbotax 2012 download If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. Free turbotax 2012 download   A day means a calendar day during any part of which you are physically present in the United States. Free turbotax 2012 download Example 1. Free turbotax 2012 download During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. Free turbotax 2012 download S. Free turbotax 2012 download partnership. Free turbotax 2012 download Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. Free turbotax 2012 download That office paid him a total gross salary of $2,800 for those services. Free turbotax 2012 download During 2013, he was not engaged in a trade or business in the United States. Free turbotax 2012 download The salary is not considered U. Free turbotax 2012 download S. Free turbotax 2012 download source income and is exempt from U. Free turbotax 2012 download S. Free turbotax 2012 download tax. Free turbotax 2012 download Example 2. Free turbotax 2012 download The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. Free turbotax 2012 download He received $2,875 in 2013, and $1,625 in 2014. Free turbotax 2012 download During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. Free turbotax 2012 download Henry's salary is U. Free turbotax 2012 download S. Free turbotax 2012 download source income and is taxed under the rules in chapter 4. Free turbotax 2012 download Crew members. Free turbotax 2012 download   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. Free turbotax 2012 download S. Free turbotax 2012 download possession is not U. Free turbotax 2012 download S. Free turbotax 2012 download source income and is exempt from U. Free turbotax 2012 download S. Free turbotax 2012 download tax. Free turbotax 2012 download This exemption does not apply to compensation for services performed on foreign aircraft. Free turbotax 2012 download Students and exchange visitors. Free turbotax 2012 download   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. Free turbotax 2012 download   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. Free turbotax 2012 download It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. Free turbotax 2012 download   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. Free turbotax 2012 download Foreign employer. Free turbotax 2012 download   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. Free turbotax 2012 download S. Free turbotax 2012 download possession by a U. Free turbotax 2012 download S. Free turbotax 2012 download corporation, a U. Free turbotax 2012 download S. Free turbotax 2012 download partnership, or an individual who is a U. Free turbotax 2012 download S. Free turbotax 2012 download citizen or resident. Free turbotax 2012 download   The term “foreign employer” does not include a foreign government. Free turbotax 2012 download Pay from a foreign government that is exempt from U. Free turbotax 2012 download S. Free turbotax 2012 download income tax is discussed in chapter 10. Free turbotax 2012 download Income from certain annuities. Free turbotax 2012 download   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. Free turbotax 2012 download S. Free turbotax 2012 download income tax if you meet both of the following conditions. Free turbotax 2012 download You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . Free turbotax 2012 download At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. Free turbotax 2012 download S. Free turbotax 2012 download citizens or residents. Free turbotax 2012 download   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. Free turbotax 2012 download S. Free turbotax 2012 download citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. Free turbotax 2012 download   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. Free turbotax 2012 download Income affected by treaties. Free turbotax 2012 download   Income of any kind that is exempt from U. Free turbotax 2012 download S. Free turbotax 2012 download tax under a treaty to which the United States is a party is excluded from your gross income. Free turbotax 2012 download Income on which the tax is only limited by treaty, however, is included in gross income. Free turbotax 2012 download See chapter 9. Free turbotax 2012 download Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. Free turbotax 2012 download Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. Free turbotax 2012 download If you are married and file a joint return, you may be able to exclude up to $500,000. Free turbotax 2012 download For information on the requirements for this exclusion, see Publication 523. Free turbotax 2012 download This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. Free turbotax 2012 download Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. Free turbotax 2012 download The rules discussed here apply to both resident and nonresident aliens. Free turbotax 2012 download If a nonresident alien receives a grant that is not from U. Free turbotax 2012 download S. Free turbotax 2012 download sources, it is not subject to U. Free turbotax 2012 download S. Free turbotax 2012 download tax. Free turbotax 2012 download See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. Free turbotax 2012 download S. Free turbotax 2012 download sources. Free turbotax 2012 download A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. Free turbotax 2012 download Candidate for a degree. Free turbotax 2012 download   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Free turbotax 2012 download Eligible educational institution. Free turbotax 2012 download   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free turbotax 2012 download Qualified education expenses. Free turbotax 2012 download   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Free turbotax 2012 download These items must be required of all students in your course of instruction. Free turbotax 2012 download However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. 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