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Irs 1040 Ez 2012

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Irs 1040 Ez 2012

Irs 1040 ez 2012 5. Irs 1040 ez 2012   Figuring Your Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Identification NumberF-1 and M-1 visa holders. Irs 1040 ez 2012 J-1 visa holders. Irs 1040 ez 2012 Filing StatusResident Aliens Nonresident Aliens Reporting Your Income DeductionsResident Aliens Nonresident Aliens ExemptionsResident Aliens Nonresident Aliens Itemized DeductionsResident Aliens Nonresident Aliens Tax Credits and PaymentsResident Aliens Nonresident Aliens Bona Fide Residents of American Samoa or Puerto Rico Introduction After you have determined your alien status, the source of your income, and if and how that income is taxed in the United States, your next step is to figure your tax. Irs 1040 ez 2012 The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. Irs 1040 ez 2012 Resident aliens should get publications, forms, and instructions for U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens, because the information for filing returns for resident aliens is generally the same as for U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 If you are both a nonresident alien and a resident alien in the same tax year, see chapter 6 for a discussion of dual-status aliens. Irs 1040 ez 2012 Topics - This chapter discusses: Identification numbers, Filing status, Deductions, Exemptions, Tax credits and payments, and Special rules for bona fide residents of American Samoa and Puerto Rico. Irs 1040 ez 2012 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 521 Moving Expenses 526 Charitable Contributions 535 Business Expenses 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) W-7 Application for IRS Individual Taxpayer Identification Number 1040 U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 Individual Income Tax Return 1040NR U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 Nonresident Alien Income Tax Return 1040NR-EZ U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4563 Exclusion of Income for Bona Fide Residents of American Samoa 8959 Additional Medicare Tax See chapter 12 for information about getting these publications and forms. Irs 1040 ez 2012 Tax Year You must figure your income and file a tax return on the basis of an annual accounting period called a tax year. Irs 1040 ez 2012 If you have not previously established a fiscal tax year, your tax year is the calendar year. Irs 1040 ez 2012 A calendar year is 12 consecutive months ending on December 31. Irs 1040 ez 2012 If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December or a 52–53 week year) and are considered to be a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 resident for any calendar year, you will be treated as a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 resident for any part of your fiscal year that falls within that calendar year. Irs 1040 ez 2012 Identification Number A taxpayer identification number must be furnished on returns, statements, and other tax-related documents. Irs 1040 ez 2012 For an individual, this is a social security number (SSN). Irs 1040 ez 2012 If you do not have and are not eligible to get an SSN, you must apply for an individual taxpayer identification number (ITIN). Irs 1040 ez 2012 An employer identification number (EIN) is required if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan. Irs 1040 ez 2012 You must furnish a taxpayer identification number if you are: An alien who has income effectively connected with the conduct of a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business at any time during the year, An alien who has a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 office or place of business at any time during the year, A nonresident alien spouse treated as a resident, as discussed in chapter 1, or Any other alien who files a tax return, an amended return, or a refund claim (but not information returns). Irs 1040 ez 2012 Social security number (SSN). Irs 1040 ez 2012   Generally, you can get an SSN if you have been lawfully admitted to the United States for permanent residence or under other immigration categories that authorize U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 employment. Irs 1040 ez 2012   To apply for this number, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration (SSA) office or call the SSA at 1-800-772-1213. Irs 1040 ez 2012 You can also download Form SS-5 from the SSA's website at www. Irs 1040 ez 2012 socialsecurity. Irs 1040 ez 2012 gov/ssnumber/ss5. Irs 1040 ez 2012 htm. Irs 1040 ez 2012 You must visit an SSA office in person and submit your Form SS-5 along with original documentation showing your age, identity, immigration status, and authority to work in the United States. Irs 1040 ez 2012 Generally, you will receive your card about 2 weeks after the SSA has all of the necessary information. Irs 1040 ez 2012 F-1 and M-1 visa holders. Irs 1040 ez 2012    If you are an F-1 or M-1 student, you must also show your Form I-20. Irs 1040 ez 2012 For more information, see SSA Publication 05-10181, International Students and Social Security Numbers, available online at www. Irs 1040 ez 2012 socialsecurity. Irs 1040 ez 2012 gov/pubs/10181. Irs 1040 ez 2012 html. Irs 1040 ez 2012 J-1 visa holders. Irs 1040 ez 2012   If you are a J-1 exchange visitor, you will also need to show your Form DS-2019. Irs 1040 ez 2012 For more information, see SSA Publication 05-10107, Foreign Workers and Social Security Numbers, available online at www. Irs 1040 ez 2012 socialsecurity. Irs 1040 ez 2012 gov/pubs/10107. Irs 1040 ez 2012 html. Irs 1040 ez 2012 Individual taxpayer identification number (ITIN). Irs 1040 ez 2012   If you do not have and are not eligible to get an SSN, you must apply for an ITIN. Irs 1040 ez 2012 For details on how to do so, see Form W-7 and its instructions. Irs 1040 ez 2012 Allow 6 to 10 weeks for the IRS to notify you of your ITIN. Irs 1040 ez 2012 If you already have an ITIN, enter it wherever an SSN is required on your tax return. Irs 1040 ez 2012   An ITIN is for tax use only. Irs 1040 ez 2012 It does not entitle you to social security benefits or change your employment or immigration status under U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 law. Irs 1040 ez 2012   In addition to those aliens who are required to furnish a taxpayer identification number and are not eligible for an SSN, a Form W-7 must be filed for: Alien individuals who are claimed as dependents and are not eligible for an SSN, and Alien spouses who are claimed as exemptions and are not eligible for an SSN. Irs 1040 ez 2012 Employer identification number (EIN). Irs 1040 ez 2012   An individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes. Irs 1040 ez 2012 To apply for an EIN, file Form SS-4, Application for Employer Identification Number, with the IRS. Irs 1040 ez 2012 Filing Status The amount of your tax depends on your filing status. Irs 1040 ez 2012 Your filing status is important in determining whether you can take certain deductions and credits. Irs 1040 ez 2012 The rules for determining your filing status are different for resident aliens and nonresident aliens. Irs 1040 ez 2012 Resident Aliens Resident aliens can use the same filing statuses available to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 See your form instructions or Publication 501 for more information on filing status. Irs 1040 ez 2012 Married filing jointly. Irs 1040 ez 2012   Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Irs 1040 ez 2012 Qualifying widow(er). Irs 1040 ez 2012   If your spouse died in 2011 or 2012, you did not remarry before the end of 2013, and you have a dependent child living with you, you may qualify to file as a qualifying widow(er) and use the joint return tax rates. Irs 1040 ez 2012 This applies only if you could have filed a joint return with your spouse for the year your spouse died. Irs 1040 ez 2012 Head of household. Irs 1040 ez 2012   You can qualify as head of household if you are unmarried or considered unmarried on the last day of the year and you pay more than half the cost of keeping up a home for you and a qualifying person. Irs 1040 ez 2012 You must be a resident alien for the entire tax year. Irs 1040 ez 2012   You are considered unmarried for this purpose if your spouse was a nonresident alien at any time during the year and you do not make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Irs 1040 ez 2012 Note. Irs 1040 ez 2012   Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit. Irs 1040 ez 2012 In that case, you will not be entitled to the credit. Irs 1040 ez 2012 See Publication 596 for more information. Irs 1040 ez 2012 Nonresident Aliens If you are a nonresident alien filing Form 1040NR, you may be able to use one of the filing statuses discussed later. Irs 1040 ez 2012 If you are filing Form 1040NR-EZ, you can only claim “Single nonresident alien” or “Married nonresident alien” as your filing status. Irs 1040 ez 2012 Married nonresident alien. Irs 1040 ez 2012   Married nonresident aliens who are not married to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens or residents generally must use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when determining the tax on income effectively connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 Exceptions. Irs 1040 ez 2012   Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation Worksheet for single individuals. Irs 1040 ez 2012 However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a married resident of Canada, Mexico, South Korea, or are a married U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 national. Irs 1040 ez 2012 See the instructions for Form 1040NR or Form 1040NR-EZ to see if you qualify. Irs 1040 ez 2012 U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 national is defined later in this section under Qualifying widow(er) . Irs 1040 ez 2012   A nonresident alien generally cannot file as married filing jointly. Irs 1040 ez 2012 However, a nonresident alien who is married to a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. Irs 1040 ez 2012 For information on these choices, see chapter 1. Irs 1040 ez 2012 If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately. Irs 1040 ez 2012 Qualifying widow(er). Irs 1040 ez 2012   You may be eligible to file as a qualifying widow(er) and use the joint return tax rates if all of the following conditions apply. Irs 1040 ez 2012 You were a resident of Canada, Mexico, or South Korea, or a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 national (defined later). Irs 1040 ez 2012 Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Irs 1040 ez 2012 You have a dependent child living with you. Irs 1040 ez 2012 See the instructions for Form 1040NR for the rules for filing as a qualifying widow(er) with a dependent child. Irs 1040 ez 2012   A U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 national is an individual who, although not a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen, owes his or her allegiance to the United States. Irs 1040 ez 2012 U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 nationals include American Samoans and Northern Mariana Islanders who chose to become U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 nationals instead of U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 Head of household. Irs 1040 ez 2012   You cannot file as head of household if you are a nonresident alien at any time during the tax year. Irs 1040 ez 2012 However, if you are married, your spouse can qualify as a head of household if: Your spouse is a resident alien or U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen for the entire tax year, You do not choose to be treated as a resident alien, and Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens . Irs 1040 ez 2012 Note. Irs 1040 ez 2012   Even if your spouse is considered unmarried for head of household purposes because you are a nonresident alien, your spouse may still be considered married for purposes of the earned income credit. Irs 1040 ez 2012 In that case, your spouse will not be entitled to the credit. Irs 1040 ez 2012 See Publication 596 for more information. Irs 1040 ez 2012 Estates and trusts. Irs 1040 ez 2012   A nonresident alien estate or trust using Form 1040NR must use Tax Rate Schedule W in the Form 1040NR instructions when determining the tax on income effectively connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 Special rules for aliens from certain U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 possessions. Irs 1040 ez 2012   A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who is temporarily working in the United States should read Bona Fide Residents of American Samoa or Puerto Rico, at the end of this chapter, for information about special rules. Irs 1040 ez 2012 Reporting Your Income You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. Irs 1040 ez 2012 For resident aliens, this includes income from sources both within and outside the United States. Irs 1040 ez 2012 For nonresident aliens, this includes both income that is effectively connected with a trade or business in the United States (subject to graduated tax rates) and income from U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 sources that is not effectively connected (subject to a flat 30% tax rate or lower tax treaty rate). Irs 1040 ez 2012 Deductions Resident and nonresident aliens can claim similar deductions on their U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax returns. Irs 1040 ez 2012 However, nonresident aliens generally can claim only deductions related to income that is effectively connected with their U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 Resident Aliens You can claim the same deductions allowed to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens if you are a resident alien for the entire tax year. Irs 1040 ez 2012 While the discussion that follows contains some of the same general rules and guidelines that apply to you, it is specifically directed toward nonresident aliens. Irs 1040 ez 2012 You should get Form 1040 and instructions for more information on how to claim your allowable deductions. Irs 1040 ez 2012 Nonresident Aliens You can claim deductions to figure your effectively connected taxable income. Irs 1040 ez 2012 You generally cannot claim deductions related to income that is not connected with your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 business activities. Irs 1040 ez 2012 Except for personal exemptions, and certain itemized deductions, discussed later, you can claim deductions only to the extent they are connected with your effectively connected income. Irs 1040 ez 2012 Ordinary and necessary business expenses. Irs 1040 ez 2012   You can deduct all ordinary and necessary expenses in the operation of your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business to the extent they relate to income effectively connected with that trade or business. Irs 1040 ez 2012 The deduction for travel expenses while in the United States is discussed under Itemized Deductions, later. Irs 1040 ez 2012 For information about other business expenses, see Publication 535. Irs 1040 ez 2012 Losses. Irs 1040 ez 2012   You can deduct losses resulting from transactions that you entered into for profit and that you were not reimbursed for by insurance, etc. Irs 1040 ez 2012 to the extent that they relate to income that is effectively connected with a trade or business in the United States. Irs 1040 ez 2012 Educator expenses. Irs 1040 ez 2012   If you were an eligible educator in 2013, you can deduct as an adjustment to income up to $250 in unreimbursed qualified expenses you paid or incurred during 2013 for books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment, and other equipment and materials used in the classroom. Irs 1040 ez 2012 For more information, see your tax form instructions. Irs 1040 ez 2012 Individual retirement arrangement (IRA). Irs 1040 ez 2012   If you made contributions to a traditional IRA for 2013, you may be able to take an IRA deduction. Irs 1040 ez 2012 But you must have taxable compensation effectively connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business to do so. Irs 1040 ez 2012 A Form 5498 should be sent to you by May 31, 2014, that shows all contributions to your traditional IRA for 2013. Irs 1040 ez 2012 If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc. Irs 1040 ez 2012 ) at work or through self-employment, your IRA deduction may be reduced or eliminated. Irs 1040 ez 2012 But you can still make contributions to a traditional IRA even if you cannot deduct them. Irs 1040 ez 2012 If you made nondeductible contributions to a traditional IRA for 2013, you must report them on Form 8606, Nondeductible IRAs. Irs 1040 ez 2012   For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Irs 1040 ez 2012 Moving expenses. Irs 1040 ez 2012   If you are a nonresident alien temporarily in the United States earning taxable income for performing personal services, you can deduct moving expenses to the United States if you meet both of the following tests. Irs 1040 ez 2012 You are a full-time employee for at least 39 weeks during the 12 months right after you move, or if you are self-employed, you work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months right after you move. Irs 1040 ez 2012 Your new job location is at least 50 miles farther (by the shortest commonly traveled route) from your former home than your former job location was. Irs 1040 ez 2012 If you had no former job location, the new job location must be at least 50 miles from your former home. Irs 1040 ez 2012   You cannot deduct the moving expense you have when returning to your home abroad or moving to a foreign job site. Irs 1040 ez 2012   Figure your deductible moving expenses to the United States on Form 3903, and deduct them on line 26 of Form 1040NR. Irs 1040 ez 2012   For more information on the moving expense deduction, see Publication 521. Irs 1040 ez 2012 Reimbursements. Irs 1040 ez 2012   If your employer reimbursed you for allowable moving expenses under an accountable plan, your employer should have excluded these reimbursements from your income. Irs 1040 ez 2012 You can only deduct allowable moving expenses that were not reimbursed by your employer or that were reimbursed but the reimbursement was included in your income. Irs 1040 ez 2012 For more information, see Publication 521. Irs 1040 ez 2012 Moving expense or travel expense. Irs 1040 ez 2012   If you deduct moving expenses to the United States, you cannot also deduct travel expenses (discussed later under Itemized Deductions) while temporarily away from your tax home in a foreign country. Irs 1040 ez 2012 Moving expenses are based on a change in your principal place of business while travel expenses are based on your temporary absence from your principal place of business. Irs 1040 ez 2012 Self-employed SEP, SIMPLE, and qualified retirement plans. Irs 1040 ez 2012   If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. Irs 1040 ez 2012 To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012   Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. Irs 1040 ez 2012 Penalty on early withdrawal of savings. Irs 1040 ez 2012   You must include in income all effectively connected interest income you receive or that is credited to your account during the year. Irs 1040 ez 2012 Do not reduce it by any penalty you must pay on an early withdrawal from a time savings account. Irs 1040 ez 2012 However, if the interest income is effectively connected with your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business during the year, you can deduct on line 30 of Form 1040NR the amount of the early withdrawal penalty that the banking institution charged. Irs 1040 ez 2012 Student loan interest expense. Irs 1040 ez 2012   If you paid interest on a student loan in 2013, you may be able to deduct up to $2,500 of the interest you paid. Irs 1040 ez 2012 Generally, you can claim the deduction if all the following requirements are met. Irs 1040 ez 2012 Your filing status is any filing status except married filing separately. Irs 1040 ez 2012 Your modified adjusted gross income is less than $75,000. Irs 1040 ez 2012 No one else is claiming an exemption for you on his or her 2013 tax return. Irs 1040 ez 2012 You paid interest on a loan taken out only to pay tuition and other qualified higher education expenses for yourself, your spouse, someone who was your dependent when the loan was taken out, or someone you could have claimed as a dependent for the year the loan was taken out except that: The person filed a joint return, The person had gross income that was equal to or more than the exemption amount for that year ($3,900 for 2013), or You could be claimed as a dependent on someone else's return. Irs 1040 ez 2012 The loan is not from a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. Irs 1040 ez 2012 The education expenses were paid or incurred within a reasonable period of time before or after the loan was taken out. Irs 1040 ez 2012 The person for whom the expenses were paid or incurred was an eligible student. Irs 1040 ez 2012 Use the worksheet in the Form 1040NR or Form 1040NR-EZ instructions to figure the deduction. Irs 1040 ez 2012 For more information, see Publication 970, Tax Benefits for Education. Irs 1040 ez 2012 Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax return. Irs 1040 ez 2012 Resident Aliens You can claim personal exemptions and exemptions for dependents according to the dependency rules for U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 You can claim an exemption for your spouse on a separate return if your spouse had no gross income for U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax purposes and was not the dependent of another taxpayer. Irs 1040 ez 2012 You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States. Irs 1040 ez 2012 You can claim an exemption for each person who qualifies as a dependent according to the rules for U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 The dependent must be a citizen or national (defined earlier) of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begins. Irs 1040 ez 2012 Get Publication 501 for more information. Irs 1040 ez 2012 Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Irs 1040 ez 2012 See Identification Number, earlier. Irs 1040 ez 2012 Nonresident Aliens Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption ($3,900 for 2013). Irs 1040 ez 2012 You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following discussions. Irs 1040 ez 2012 Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Irs 1040 ez 2012 See Identification Number, earlier. Irs 1040 ez 2012 Residents of Mexico or Canada or U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 nationals. Irs 1040 ez 2012   If you are a resident of Mexico or Canada or a national of the United States (defined earlier), you can also claim a personal exemption for your spouse if your spouse had no gross income for U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax purposes and cannot be claimed as the dependent on another U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 taxpayer's return. Irs 1040 ez 2012 In addition, you can claim exemptions for your dependents who meet certain tests. Irs 1040 ez 2012 Residents of Mexico, Canada, or nationals of the United States must use the same rules as U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens to determine who is a dependent and for which dependents exemptions can be claimed. Irs 1040 ez 2012 See Publication 501 for these rules. Irs 1040 ez 2012 For purposes of these rules, dependents who are U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 nationals meet the citizenship test discussed in Publication 501. Irs 1040 ez 2012 Residents of South Korea. Irs 1040 ez 2012   Nonresident aliens who are residents of South Korea may be able to claim exemptions for a spouse and children. Irs 1040 ez 2012 The income tax treaty with South Korea imposes two additional requirements on South Korean residents: The spouse and all children claimed must live with the alien in the United States at some time during the tax year, and The additional deduction for the exemptions must be prorated based on the ratio of the alien's U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 source gross income effectively connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business for the tax year to the alien's entire income from all sources during the tax year. Irs 1040 ez 2012 Example. Irs 1040 ez 2012 Mr. Irs 1040 ez 2012 Park, a nonresident alien who is a resident of South Korea, lives temporarily in the United States with his wife and two children. Irs 1040 ez 2012 During the tax year he receives U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 compensation of $18,000. Irs 1040 ez 2012 He also receives $6,000 of income from sources outside the United States that is not effectively connected with his U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 Thus, his total income for the year is $24,000. Irs 1040 ez 2012 Mr. Irs 1040 ez 2012 Park meets all requirements for claiming exemptions for his spouse and two children. Irs 1040 ez 2012 The additional deduction for 2013 is $8,775 figured as follows: $18,000 $24,000 × $11,700* = $8,775               *3 × $3,900 = $11,700   Students and business apprentices from India. Irs 1040 ez 2012   Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty may be able to claim exemptions for their spouse and dependents. Irs 1040 ez 2012   You can claim an exemption for your spouse if he or she had no gross income during the year and cannot be claimed as a dependent on another U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 taxpayer's return. Irs 1040 ez 2012   You can claim exemptions for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 See Publication 501 for these rules. Irs 1040 ez 2012   List your spouse and dependents on line 7c of Form 1040NR. Irs 1040 ez 2012 Enter the total on the appropriate line to the right of line 7c. Irs 1040 ez 2012 Itemized Deductions Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irs 1040 ez 2012 However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 Resident Aliens You can claim the same itemized deductions as U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens, using Schedule A of Form 1040. Irs 1040 ez 2012 These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. Irs 1040 ez 2012 If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. Irs 1040 ez 2012 For further information, see Form 1040 and instructions. Irs 1040 ez 2012 Nonresident Aliens You can deduct certain itemized deductions if you receive income effectively connected with your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 These deductions include state and local income taxes, charitable contributions to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 organizations, casualty and theft losses, and miscellaneous deductions. Irs 1040 ez 2012 Use Schedule A of Form 1040NR to claim itemized deductions. Irs 1040 ez 2012 If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. Irs 1040 ez 2012 If you are claiming any other itemized deduction, you must file Form 1040NR. Irs 1040 ez 2012 Standard deduction. Irs 1040 ez 2012   Nonresident aliens cannot claim the standard deduction. Irs 1040 ez 2012 However, see Students and business apprentices from India , next. Irs 1040 ez 2012 Students and business apprentices from India. Irs 1040 ez 2012   A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. Irs 1040 ez 2012 You can claim the standard deduction provided you do not claim itemized deductions. Irs 1040 ez 2012   Use Worksheet 5-1 to figure your standard deduction. Irs 1040 ez 2012 If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Irs 1040 ez 2012 State and local income taxes. Irs 1040 ez 2012   You can deduct state and local income taxes you paid on income that is effectively connected with a trade or business in the United States. Irs 1040 ez 2012 If you received a refund or rebate in 2013 of taxes you paid in an earlier year, do not reduce your deduction by that amount. Irs 1040 ez 2012 Instead, you must include the refund or rebate in income if you deducted the taxes in the earlier year and the deduction reduced your tax. Irs 1040 ez 2012 See Recoveries in Publication 525 for details on how to figure the amount to include in income. Irs 1040 ez 2012 Charitable contributions. Irs 1040 ez 2012   You can deduct your charitable contributions or gifts to qualified organizations subject to certain limits. Irs 1040 ez 2012 Qualified organizations include organizations that are religious, charitable, educational, scientific, or literary in nature, or that work to prevent cruelty to children or animals. Irs 1040 ez 2012 Certain organizations that promote national or international amateur sports competition are also qualified organizations. Irs 1040 ez 2012 Foreign organizations. Irs 1040 ez 2012   Contributions made directly to a foreign organization are not deductible. Irs 1040 ez 2012 However, you can deduct contributions to a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 organization that transfers funds to a charitable foreign organization if the U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 organization controls the use of the funds or if the foreign organization is only an administrative arm of the U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 organization. Irs 1040 ez 2012   For more information about organizations that qualify to receive charitable contributions, see Publication 526, Charitable Contributions. Irs 1040 ez 2012 Worksheet 5-1. Irs 1040 ez 2012 2013 Standard Deduction Worksheet for Students and Business Apprentices From India Caution. Irs 1040 ez 2012 If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. Irs 1040 ez 2012 You cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Irs 1040 ez 2012 1 Enter the amount shown below for your filing status. Irs 1040 ez 2012           Single or married filing separately—$6,100 Qualifying widow(er)—$12,200 1. Irs 1040 ez 2012           2 Can you be claimed as a dependent on someone else's U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 income tax return?  No. Irs 1040 ez 2012 Enter the amount from line 1 on line 4. Irs 1040 ez 2012 Skip line 3 and go to line 5. Irs 1040 ez 2012   Yes. Irs 1040 ez 2012 Go to line 3. Irs 1040 ez 2012         3 Is your earned income* more than $650?           Yes. Irs 1040 ez 2012 Add $350 to your earned income. Irs 1040 ez 2012 Enter the total. Irs 1040 ez 2012           No. Irs 1040 ez 2012 Enter $1,000 3. Irs 1040 ez 2012       4 Enter the smaller of line 1 or line 3 4. Irs 1040 ez 2012   5 If born before January 2, 1949, OR blind, enter $1,200 ($1,500 if single). Irs 1040 ez 2012 If born before January 2, 1949, AND blind, enter $2,400 ($3,000 if single). Irs 1040 ez 2012 Otherwise, enter -0- 5. Irs 1040 ez 2012   6 Add lines 4 and 5. Irs 1040 ez 2012 Enter the total here and on Form 1040NR, line 38 (or Form 1040NR-EZ, line 11). Irs 1040 ez 2012 Print “Standard Deduction Allowed Under U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 –India Income Tax Treaty” in the space to the left of these lines. Irs 1040 ez 2012 This is your standard deduction for 2013. Irs 1040 ez 2012 6. Irs 1040 ez 2012   *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Irs 1040 ez 2012 It also includes any amount received as a scholarship that you must include in your income. Irs 1040 ez 2012 Generally, your earned income is the total of the amount(s) you reported on Form 1040NR, lines 8,12,13, and 19, minus amounts on lines 27 and 31 (or Form 1040NR-EZ, lines 3 and 5, minus any amount on line 8). Irs 1040 ez 2012 Contributions from which you benefit. Irs 1040 ez 2012   If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Irs 1040 ez 2012   If you pay more than the fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. Irs 1040 ez 2012 For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Irs 1040 ez 2012 Cash contributions. Irs 1040 ez 2012   You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written record from the charity. Irs 1040 ez 2012 The written record must include the name of the charity, date of the contribution, and the amount of the contribution. Irs 1040 ez 2012   You may deduct a cash contribution of $250 or more only if you have a written statement from the charitable organization showing: The amount of any money contributed, Whether the organization gave you any goods or services in return for your contribution, and A description and estimate of the value of any goods or services described in (2). Irs 1040 ez 2012 If you received only intangible religious benefits, the organization must state this, but it does not have to describe or value the benefit. Irs 1040 ez 2012 Noncash contributions. Irs 1040 ez 2012   For contributions not made in cash, the records you must keep depend on the amount of your deduction. Irs 1040 ez 2012 See Publication 526 for details. Irs 1040 ez 2012 For example, if you make a noncash contribution and the amount of your deduction is more than $500, you must complete and attach to your tax return Form 8283, Noncash Charitable Contributions. Irs 1040 ez 2012 If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. Irs 1040 ez 2012 If your total deduction is over $5,000, you also may have to get appraisals of the values of the property. Irs 1040 ez 2012 If the donated property is valued at more than $5,000, you must obtain a qualified appraisal. Irs 1040 ez 2012 You generally must attach to your tax return an appraisal of any property if your deduction for the property is more than $500,000. Irs 1040 ez 2012 See Form 8283 and its instructions for details. Irs 1040 ez 2012 Contributions of appreciated property. Irs 1040 ez 2012   If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Irs 1040 ez 2012 However, if you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Irs 1040 ez 2012 Your basis in the property is generally what you paid for it. Irs 1040 ez 2012 If you need more information about basis, get Publication 551, Basis of Assets. Irs 1040 ez 2012   Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Irs 1040 ez 2012 For information about these rules, see Publication 526. Irs 1040 ez 2012 Limit. Irs 1040 ez 2012   The amount you can deduct in a tax year is limited in the same way it is for a citizen or resident of the United States. Irs 1040 ez 2012 For a discussion of limits on charitable contributions and other information, get Publication 526. Irs 1040 ez 2012 Casualty and theft losses. Irs 1040 ez 2012   You can deduct your loss from fire, storm, shipwreck, or other casualty, or theft of property even though your property is not connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 The property can be personal use property or income-producing property not connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business. Irs 1040 ez 2012 The property must be located in the United States at the time of the casualty or theft. Irs 1040 ez 2012 You can deduct theft losses only in the year in which you discover the loss. Irs 1040 ez 2012   The amount of the loss is the fair market value of the property immediately before the casualty or theft less its fair market value immediately after the casualty or theft (but not more than its cost or adjusted basis) less any insurance or other reimbursement. Irs 1040 ez 2012 The fair market value of property immediately after a theft is considered zero, because you no longer have the property. Irs 1040 ez 2012   If your property is covered by insurance, you should file a timely insurance claim for reimbursement. Irs 1040 ez 2012 If you do not, you cannot deduct this loss as a casualty or theft loss. Irs 1040 ez 2012   Figure your deductible casualty and theft losses on Form 4684, Casualties and Thefts. Irs 1040 ez 2012 Losses from personal use property. Irs 1040 ez 2012    You cannot deduct the first $100 of each casualty or theft loss to property held for personal use. Irs 1040 ez 2012 You can deduct only the total of these losses for the year (reduced by the $100 limit) that is more than 10% of your adjusted gross income (line 37, Form 1040NR) for the year. Irs 1040 ez 2012 Losses from income-producing property. Irs 1040 ez 2012   These losses are not subject to the limitations that apply to personal use property. Irs 1040 ez 2012 Use Section B of Form 4684 to figure your deduction for these losses. Irs 1040 ez 2012 Job expenses and other miscellaneous deductions. Irs 1040 ez 2012   You can deduct job expenses, such as allowable unreimbursed travel expenses (discussed next), and other miscellaneous deductions. Irs 1040 ez 2012 Generally, the allowable deductions must be related to effectively connected income. Irs 1040 ez 2012 Deductible expenses include: Union dues, Safety equipment and small tools needed for your job, Dues to professional organizations, Subscriptions to professional journals, Tax return preparation fees, and Casualty and theft losses of property used in performing services as an employee (employee property). Irs 1040 ez 2012   Most miscellaneous itemized deductions are deductible only if they are more than 2% of your adjusted gross income (line 37, Form 1040NR). Irs 1040 ez 2012 For more information on miscellaneous deductions, see the instructions for Form 1040NR. Irs 1040 ez 2012 Travel expenses. Irs 1040 ez 2012   You may be able to deduct your ordinary and necessary travel expenses while you are temporarily performing personal services in the United States. Irs 1040 ez 2012 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. Irs 1040 ez 2012 You must be able to show you were present in the United States on an activity that required your temporary absence from your regular place of work. Irs 1040 ez 2012   For example, if you have established a “tax home” through regular employment in a foreign country, and intend to return to similar employment in the same country at the end of your temporary stay in the United States, you can deduct reasonable travel expenses you paid. Irs 1040 ez 2012 You cannot deduct travel expenses for other members of your family or party. Irs 1040 ez 2012 Deductible travel expenses. Irs 1040 ez 2012   If you qualify, you can deduct your expenses for: Transportation—airfare, local transportation, including train, bus, etc. Irs 1040 ez 2012 , Lodging—rent paid, utilities (do not include telephone), hotel or motel room expenses, and Meal expenses—actual expenses allowed if you keep records of the amounts, or, if you do not wish to keep detailed records, you are generally allowed a standard meal allowance amount depending on the date and area of your travel. Irs 1040 ez 2012 You generally can deduct only 50% of unreimbursed meal expenses. Irs 1040 ez 2012 The standard meal allowance rates for high-cost areas are available at www. Irs 1040 ez 2012 gsa. Irs 1040 ez 2012 gov/perdiem. Irs 1040 ez 2012 The rates for other areas are in Publication 463. Irs 1040 ez 2012   Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 7 of Schedule A (Form 1040NR). Irs 1040 ez 2012 Expenses allocable to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax-exempt income. Irs 1040 ez 2012   You cannot deduct an expense, or part of an expense, that is allocable to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax-exempt income, including income exempt by tax treaty. Irs 1040 ez 2012 Example. Irs 1040 ez 2012 Irina Oak, a citizen of Poland, resided in the United States for part of the year to acquire business experience from a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 company. Irs 1040 ez 2012 During her stay in the United States, she received a salary of $8,000 from her Polish employer. Irs 1040 ez 2012 She received no other U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 source income. Irs 1040 ez 2012 She spent $3,000 on travel expenses, of which $1,000 were for meals. Irs 1040 ez 2012 None of these expenses were reimbursed. Irs 1040 ez 2012 Under the tax treaty with Poland, $5,000 of her salary is exempt from U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 income tax. Irs 1040 ez 2012 In filling out Form 2106-EZ, she must reduce her deductible meal expenses by half ($500). Irs 1040 ez 2012 She must reduce the remaining $2,500 of travel expenses by 62. Irs 1040 ez 2012 5% ($1,563) because 62. Irs 1040 ez 2012 5% ($5,000 ÷ $8,000) of her salary is exempt from tax. Irs 1040 ez 2012 She enters the remaining total of $937 on line 7 of Schedule A (Form 1040NR). Irs 1040 ez 2012 She completes the remaining lines according to the instructions for Schedule A. Irs 1040 ez 2012 More information. Irs 1040 ez 2012   For more information about deductible expenses, reimbursements, and recordkeeping, get Publication 463. Irs 1040 ez 2012 Tax Credits and Payments This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and payments for nonresident aliens. Irs 1040 ez 2012 Resident Aliens Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizens. Irs 1040 ez 2012 The following items are some of the credits you may be able to claim. Irs 1040 ez 2012 Foreign tax credit. Irs 1040 ez 2012   You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign country on foreign source income. Irs 1040 ez 2012 You cannot claim a credit for taxes paid or accrued on excluded foreign earned income. Irs 1040 ez 2012 To claim a credit for income taxes paid or accrued to a foreign country, you generally will file Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), with your Form 1040. Irs 1040 ez 2012   For more information, get Publication 514, Foreign Tax Credit for Individuals. Irs 1040 ez 2012 Child and dependent care credit. Irs 1040 ez 2012   You may be able to take this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Irs 1040 ez 2012 Generally, you must be able to claim an exemption for your dependent. Irs 1040 ez 2012   For more information, get Publication 503, Child and Dependent Care Expenses, and Form 2441, Child and Dependent Care Expenses. Irs 1040 ez 2012 Credit for the elderly or the disabled. Irs 1040 ez 2012   You may qualify for this credit if you are 65 or older or if you retired on permanent and total disability. Irs 1040 ez 2012 For more information on this credit, get Publication 524, Credit for the Elderly or the Disabled, and Schedule R (Form 1040A or 1040). Irs 1040 ez 2012 Education credits. Irs 1040 ez 2012   You may qualify for these credits if you paid qualified education expenses for yourself, your spouse, or your dependent. Irs 1040 ez 2012 There are two education credits: the American Opportunity Credit and the lifetime learning credit. Irs 1040 ez 2012 You cannot claim these credits if you are married filing separately. Irs 1040 ez 2012 Use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to figure the credit. Irs 1040 ez 2012 For more information, see Publication 970. Irs 1040 ez 2012 Retirement savings contributions credit. Irs 1040 ez 2012   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Irs 1040 ez 2012 You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than: $59,000, if your filing status is married filing jointly, $44,250, if your filing status is head of household, or $29,500, if your filing status is single, married filing separately, or qualifying widow(er). Irs 1040 ez 2012 Use Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the credit. Irs 1040 ez 2012 For more information, see Publication 590. Irs 1040 ez 2012 Child tax credit. Irs 1040 ez 2012   You may be able to take this credit if you have a qualifying child. Irs 1040 ez 2012   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Irs 1040 ez 2012 Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Irs 1040 ez 2012 Is a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen, a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 national, or a resident alien. Irs 1040 ez 2012 Did not provide over half of his or her own support for 2013. Irs 1040 ez 2012 Lived with you more than half of 2013. Irs 1040 ez 2012 Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Irs 1040 ez 2012 Is claimed as a dependent on your return. Irs 1040 ez 2012 An adopted child is always treated as your own child. Irs 1040 ez 2012 An adopted child includes a child lawfully placed with you for legal adoption. Irs 1040 ez 2012   See your form instructions for additional details. Irs 1040 ez 2012 Adoption credit. Irs 1040 ez 2012   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Irs 1040 ez 2012 This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Irs 1040 ez 2012 To claim the adoption credit, file Form 8839, Qualified Adoption Expenses, with your Form 1040. Irs 1040 ez 2012 Earned income credit. Irs 1040 ez 2012   You may qualify for an earned income credit of up to $3,250 if a child lived with you in the United States and your earned income and adjusted gross income were each less than $37,870 ($43,210 if married filing jointly). Irs 1040 ez 2012 If two children lived with you in the United States and your earned income and adjusted gross income were each less than $43,038 ($48,378 if married filing jointly), your credit could be as much as $5,372. Irs 1040 ez 2012 If three or more children lived with you in the United States and your earned income and adjusted gross income were each less than $46,227 ($51,567 if married filing jointly), your credit could be as much as $6,044. Irs 1040 ez 2012 If you do not have a qualifying child and your earned income and adjusted gross income were each less than $14,340 ($19,680 if married filing jointly), your credit could be as much as $487. Irs 1040 ez 2012 You cannot claim the earned income credit if your filing status is married filing separately. Irs 1040 ez 2012    You and your spouse (if filing a joint return) and any qualifying child must have valid SSNs to claim this credit. Irs 1040 ez 2012 You cannot claim the credit using an ITIN. Irs 1040 ez 2012 If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Irs 1040 ez 2012 An example of a federally funded benefit is Medicaid. Irs 1040 ez 2012 If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Irs 1040 ez 2012 Other information. Irs 1040 ez 2012   There are other eligibility rules that are not discussed here. Irs 1040 ez 2012 For more information, get Publication 596, Earned Income Credit. Irs 1040 ez 2012 Nonresident Aliens You can claim some of the same credits that resident aliens can claim. Irs 1040 ez 2012 You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income. Irs 1040 ez 2012 Credits Credits are allowed only if you receive effectively connected income. Irs 1040 ez 2012 You may be able to claim some of the following credits. Irs 1040 ez 2012 Foreign tax credit. Irs 1040 ez 2012   If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 possession on that income. Irs 1040 ez 2012   If you do not have foreign source income effectively connected with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 trade or business, you cannot claim credits against your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax for taxes paid or accrued to a foreign country or U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 possession. Irs 1040 ez 2012   You cannot take any credit for taxes imposed by a foreign country or U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 possession on your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. Irs 1040 ez 2012   If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. Irs 1040 ez 2012 See Publication 514 for more information. Irs 1040 ez 2012 Child and dependent care credit. Irs 1040 ez 2012   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Irs 1040 ez 2012 Generally, you must be able to claim an exemption for your dependent. Irs 1040 ez 2012   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). Irs 1040 ez 2012   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. Irs 1040 ez 2012 Earned income generally means wages, salaries, and professional fees for personal services performed. Irs 1040 ez 2012   For more information, get Publication 503. Irs 1040 ez 2012 Education credits. Irs 1040 ez 2012   If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irs 1040 ez 2012 However, if you are married and choose to file a joint return with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. Irs 1040 ez 2012 Retirement savings contributions credit. Irs 1040 ez 2012   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Irs 1040 ez 2012 You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. Irs 1040 ez 2012 Use Form 8880 to figure the credit. Irs 1040 ez 2012 For more information, see Publication 590. Irs 1040 ez 2012 Child tax credit. Irs 1040 ez 2012   You may be able to take this credit if you have a qualifying child. Irs 1040 ez 2012   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Irs 1040 ez 2012 Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Irs 1040 ez 2012 Is a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen, a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 national, or a resident alien. Irs 1040 ez 2012 Did not provide over half of his or her own support for 2013. Irs 1040 ez 2012 Lived with you more than half of 2013. Irs 1040 ez 2012 Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Irs 1040 ez 2012 Is claimed as a dependent on your return. Irs 1040 ez 2012 An adopted child is always treated as your own child. Irs 1040 ez 2012 An adopted child includes a child lawfully placed with you for legal adoption. Irs 1040 ez 2012   See your form instructions for additional details. Irs 1040 ez 2012 Adoption credit. Irs 1040 ez 2012   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Irs 1040 ez 2012 This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Irs 1040 ez 2012 To claim the adoption credit, file Form 8839 with your Form 1040NR. Irs 1040 ez 2012   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). Irs 1040 ez 2012 Credit for prior year minimum tax. Irs 1040 ez 2012   If you paid alternative minimum tax in a prior year, get Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, to see if you qualify for this credit. Irs 1040 ez 2012 Earned income credit. Irs 1040 ez 2012   If you are a nonresident alien for any part of the tax year, you generally cannot get the earned income credit. Irs 1040 ez 2012 However, if you are married and choose to file a joint return with a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or resident spouse as discussed in chapter 1, you may be eligible for the credit. Irs 1040 ez 2012    You, your spouse, and any qualifying child must have valid SSNs to claim this credit. Irs 1040 ez 2012 You cannot claim the credit using an ITIN. Irs 1040 ez 2012 If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Irs 1040 ez 2012 An example of a federally funded benefit is Medicaid. Irs 1040 ez 2012 If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Irs 1040 ez 2012   See Publication 596 for more information on the credit. Irs 1040 ez 2012 Tax Withheld You can claim the tax withheld during the year as a payment against your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 tax. Irs 1040 ez 2012 You claim it on line 61 of Form 1040NR or on line 18 of Form 1040NR-EZ. Irs 1040 ez 2012 The tax withheld reduces any tax you owe with Form 1040NR or Form 1040NR-EZ. Irs 1040 ez 2012 Withholding from wages. Irs 1040 ez 2012   Any federal income tax withheld from your wages during the tax year while you were a nonresident alien is allowed as a payment against your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 income tax liability for the same year. Irs 1040 ez 2012 You can claim the income tax withheld whether or not you were engaged in a trade or business in the United States during the year, and whether or not the wages (or any other income) were connected with a trade or business in the United States. Irs 1040 ez 2012 Excess social security tax withheld. Irs 1040 ez 2012   If you have two or more employers, you may be able to claim a credit against your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 income tax liability for social security tax withheld in excess of the maximum required. Irs 1040 ez 2012 See Social Security and Medicare Taxes in chapter 8 for more information. Irs 1040 ez 2012 Additional Medicare Tax. Irs 1040 ez 2012   Your employer is responsible for withholding the 0. Irs 1040 ez 2012 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. Irs 1040 ez 2012 If you do not owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959. Irs 1040 ez 2012 Tax paid on undistributed long-term capital gains. Irs 1040 ez 2012   If you are a shareholder in a mutual fund (or other regulated investment company) or real estate investment trust, you can claim a credit for your share of any taxes paid by the company on its undistributed long-term capital gains. Irs 1040 ez 2012 You will receive information on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which you must attach to your return. Irs 1040 ez 2012 Tax withheld at the source. Irs 1040 ez 2012   You can claim as a payment any tax withheld at the source on investment and other fixed or determinable annual or periodic income paid to you. Irs 1040 ez 2012 Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income. Irs 1040 ez 2012 Wage or salary payments can be fixed or determinable income to you, but usually are subject to withholding as discussed above. Irs 1040 ez 2012 Taxes on fixed or determinable income are withheld at a 30% rate or at a lower treaty rate. Irs 1040 ez 2012 Tax withheld on partnership income. Irs 1040 ez 2012   If you are a foreign partner in a partnership, the partnership will withhold tax on your share of effectively connected taxable income from the partnership. Irs 1040 ez 2012 The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Irs 1040 ez 2012 A partnership that is publicly traded may withhold on your actual distributions of effectively connected income. Irs 1040 ez 2012 In this case, the partnership will give you a statement on Form 1042-S. Irs 1040 ez 2012 Claim the tax withheld as a payment on line 61b or 61d of Form 1040NR, as appropriate. Irs 1040 ez 2012 Claiming tax withheld on your return. Irs 1040 ez 2012   When you fill out your tax return, take extra care to enter the correct amount of any tax withheld shown on your information documents. Irs 1040 ez 2012 The following table lists some of the more common information documents and shows where to find the amount of tax withheld. Irs 1040 ez 2012 Form number Location  of tax  withheld RRB-1042S Box 12 SSA-1042S Box 9 W-2 Box 2 W-2c Box 2 1042-S Box 9 8805 Line 10 8288-A Box 2 Bona Fide Residents of American Samoa or Puerto Rico If you are a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you generally are taxed the same as resident aliens. Irs 1040 ez 2012 You should file Form 1040 and report all income from sources both in and outside the United States. Irs 1040 ez 2012 However, you can exclude the income discussed in the following paragraphs. Irs 1040 ez 2012 For tax purposes other than reporting income, however, you will be treated as a nonresident alien. Irs 1040 ez 2012 For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Irs 1040 ez 2012 There are also limits on what deductions and credits are allowed. Irs 1040 ez 2012 See Nonresident Aliens under Deductions , Itemized Deductions , and Tax Credits and Payments in this chapter. Irs 1040 ez 2012 Residents of Puerto Rico. Irs 1040 ez 2012   If you are a bona fide resident of Puerto Rico for the entire year, you can exclude from gross income all income from sources in Puerto Rico (other than amounts for services performed as an employee of the United States or any of its agencies). Irs 1040 ez 2012   If you report income on a calendar year basis and you do not have wages subject to withholding, file your return and pay your tax by June 15. Irs 1040 ez 2012 You must also make your first payment of estimated tax by June 15. Irs 1040 ez 2012 You cannot file a joint income tax return or make joint payments of estimated tax. Irs 1040 ez 2012 However, if you are married to a U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 citizen or resident, see Nonresident Spouse Treated as a Resident in chapter 1. Irs 1040 ez 2012   If you earn wages subject to withholding, your U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 income tax return is due by April 15. Irs 1040 ez 2012 Your first payment of estimated tax is also due by April 15. Irs 1040 ez 2012 For information on withholding and estimated tax, see chapter 8 . Irs 1040 ez 2012 Residents of American Samoa. Irs 1040 ez 2012   If you are a bona fide resident of American Samoa for the entire year, you can exclude from gross income all income from sources in American Samoa (other than amounts for services performed as an employee of the U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 government or any of its agencies). Irs 1040 ez 2012 An employee of the American Samoan government is not considered an employee of the U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 government or any of its agencies for purposes of the exclusion. Irs 1040 ez 2012 For more information about this exclusion, get Form 4563 and Publication 570, Tax Guide for Individuals With Income From U. Irs 1040 ez 2012 S. Irs 1040 ez 2012 Possessions. Irs 1040 ez 2012 Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Business Tax Statistics

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Each year SOI produces studies that provide statistics on income, deductions, taxes, credits, and more reported by businesses. Select the subject areas below that interest you.

Integrated Business Data (IBD)

 

This section contains statistical tables and articles on all businesses, which were compiled to form the SOI Integrated Business Dataset (IBD). The IBD was assembled at the table level from the annual SOI cross-sectional studies of corporations ( C and S corporations), partnerships, and nonfarm sole proprietorships. The dataset combines data from these types of organizations to enable examination of changes in business composition. Data from these annual statistical studies are generally publicly available and are published in a variety of SOI reports.
Form 8824 Data for Like-Kind Property Exchanges.  1995-2010

Corporations

 

Numerous articles and data which provide statistics on income, deductions, tax, credits, and more as reported by corporations filing on Form 1120 (1120, 1120-A, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, and more) returns and associated schedules can be found here.

International

 

Find statistics for both inbound and outbound international corporate activities here. There's also information on specialized areas covering foreign trusts, international boycotts, and including form types: 5471, 5472, 1118, 1120-F, 1120-FSC, 5713, 5735, and more.

Partnerships

Snapshot of Partnership Returns, 2010

Partnerships are relationships between two or more persons who join to carry on a trade or business, with each person contributing money, property, labor or skill, and each expecting to share in the profits and losses of the business. These data come from taxpayers filing Form 1065 or 1065-B. Look here for statistics and related information on partnerships.

S Corporations

 

S corporations are domestic corporations that elect to be taxed individually on the corporation's income; they can have no more than 75 shareholders (only U.S. citizens, resident aliens, estates, certain trusts, and exempt organizations) and one class of stock. These corporations file on Form 1120S . Look here for statistics and related information on these corporations.

 Sole Proprietorships
 Non-Farm  ||  Farm

Sole Proprietorships are businesses too.  Here you'll find statistics covering basic data, business receipts, deductions, and net income reported by an individual taxpayer on Schedule C (non-farm) of Form 1040.  There are also statistics for Schedule F (farm) of Form 1040

Excise

This section contains statistics on taxes levied on the manufacture, sale, or consumption of commodities, including data for environmental, gasoline, and telephone excise taxes, and more.

Employment

Employment data are available in the IRS Data Book and in SOI Bulletin Articles.  Find statistics for FICA and SECA taxes, and more, here.

 SOI Bulletin Articles

The SOI Bulletin is a quarterly publication containing articles and data releases from all SOI programs. Look here for articles sorted by topic and relating to business tax statistics.

 

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Page Last Reviewed or Updated: 05-Sep-2013

The Irs 1040 Ez 2012

Irs 1040 ez 2012 Publication 557 - Additional Material Table of Contents Appendix. Irs 1040 ez 2012 Sample Articles of Organization, continued Organization Reference Chart Section of 1986 Code Description of organization General nature of activities Application  Form Annual return required to be  filed Contributions  allowable 501(c)(1) Corporations Organized under Act of Congress (including Federal Credit Unions) Instrumentalities of the  United States No Form None Yes, if made for exclusively public purposes 501(c)(2) Title Holding Corporation For Exempt Organization Holding title to property of an  exempt organization 1024 9901 or 990-EZ8 No2 501(c)(3) Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations Activities of nature implied by description of class of organization 1023 9901 or 990-EZ8, or 990-PF Yes, generally 501(c)(4) Civic Leagues, Social Welfare Organizations, and Local Associations of Employees Promotion of community welfare; charitable, educational, or recreational 1024 9901 or 990-EZ8 No, generally 2, 3 501(c)(5) Labor, Agricultural, and Horticultural Organizations Educational or instructive, the  purpose being to improve conditions of work, and to improve products of efficiency 1024 9901 or 990-EZ8 No2 501(c)(6) Business Leagues, Chambers of Commerce, Real Estate Boards, etc. Irs 1040 ez 2012 Improvement of business  conditions of one or more lines of business 1024 9901 or 990-EZ8 No2 501(c)(7) Social and Recreational Clubs Pleasure, recreation, social activities 1024 9901 or 990-EZ8 No2 501(c)(8) Fraternal Beneficiary Societies  and Associations Lodge providing for payment of life, sickness, accident or other benefits  to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. Irs 1040 ez 2012 501(c)(3) purposes 501(c)(9) Voluntary Employees Beneficiary Associations Providing for payment of life, sickness, accident, or other benefits to members 1024 9901 or 990-EZ8 No2 501(c)(10) Domestic Fraternal Societies  and Associations Lodge devoting its net earnings to charitable, fraternal, and other  specified purposes. Irs 1040 ez 2012 No life, sickness, or accident benefits to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. Irs 1040 ez 2012 501(c)(3) purposes 501(c)(11) Teachers' Retirement Fund Associations Teachers' association for payment of retirement benefits Letter6 9901 or 990-EZ8 No2 501(c)(12) Benevolent Life Insurance Associations, Mutual Ditch or  Irrigation Companies, Mutual or Cooperative Telephone Companies, etc. Irs 1040 ez 2012 Activities of a mutually beneficial  nature similar to those implied by the description of class of organization 1024 9901 or 990-EZ8 No2 501(c)(13) Cemetery Companies Burials and incidental activities 1024 9901 or 990-EZ8 Yes, generally 501(c)(14) State-Chartered Credit Unions,  Mutual Reserve Funds Loans to members Letter6 9901 or 990-EZ8 No2 501(c)(15) Mutual Insurance Companies or Associations Providing insurance to members substantially at cost 1024 9901 or 990-EZ8 No2 501(c)(16) Cooperative Organizations to  Finance Crop Operations Financing crop operations in  conjunction with activities of a marketing  or purchasing association Form 1120-C6 9901 or 990-EZ8 No2 501(c)(17) Supplemental Unemployment  Benefit Trusts Provides for payment of  supplemental unemployment compensation benefits 1024 9901 or 990-EZ8 No2 501(c)(18) Employee Funded Pension Trust (created before June 25, 1959) Payment of benefits under a  pension plan funded by employees Letter6 9901 or 990-EZ8 No2 501(c)(19) Post or Organization of Past or  Present Members of the Armed Forces Activities implied by nature of organization 1024 9901 or 990-EZ8 No, generally7 501(c)(21) Black Lung Benefit Trusts Funded by coal mine operators to satisfy their liability for disability or  death due to black lung diseases Letter6 990-BL No4 501(c)(22) Withdrawal Liability Payment Fund To provide funds to meet the  liability of employers withdrawing from  a multi-employer pension fund Letter6 9901 or 990-EZ8 No5 501(c)(23) Veterans' Organization (created before 1880) To provide insurance and other  benefits to veterans Letter6 9901 or 990-EZ8 No, generally7 501(c)(25) Title Holding Corporations or Trusts with Multiple Parent Corporations Holding title and paying over  income from property to 35 or fewer parents or beneficiaries 1024 9901 or 990-EZ8 No 501(c)(26) State-Sponsored Organization Providing Health Coverage for High-Risk Individuals Provides health care coverage to high-risk individuals Letter6 9901 or 990-EZ8 No 501(c)(27) State-Sponsored Workers' Compensation Reinsurance Organization Reimburses members for losses  under workers' compensation acts Letter6 9901 or 990-EZ8 No 501(c)(28) National Railroad Retirement Investment Trust Manages and invests the assets of the Railroad Retirement Account No Form 99011 No11 501(c)(29) CO-OP health insurance issuers A qualified health insurance issuer which has received a loan or grant under the CO-OP program Letter and Form 871814 9901 No13 501(d) Religious and Apostolic Associations Regular business activities;  Communal religious community No Form 10659 No2 501(e) Cooperative Hospital Service Organizations Performs cooperative services for hospitals 1023 9901 or 990-EZ8 Yes 501(f) Cooperative Service Organizations  of Operating Educational Organizations Performs collective investment  services for educational organizations 1023 9901 or 990-EZ8 Yes 501(k) Child Care Organizations Provides care for children 1023 9901 or 990-EZ8 Yes 501(n) Charitable Risk Pools Pools certain insurance risks of sec. Irs 1040 ez 2012 501(c)(3) organizations 1023 9901 or 990-EZ8 Yes 501(q) Credit Counseling Organization Credit counseling services 1023 102312 No 521(a) Farmers' Cooperative Associations Cooperative marketing and  purchasing for agricultural procedures 1028 1120-C No 527 Political organizations A party, committee, fund,  association, etc. Irs 1040 ez 2012 , that directly or indirectly accepts contributions or makes expenditures for political campaigns 8871 1120-POL10 9901 or 990-EZ8 No 1For exceptions to the filing requirement, see chapter 2 and the form instructions. Irs 1040 ez 2012 Note: For annual tax periods beginning after 2006, most tax-exempt organizations, other than churches, are required to file an annual Form 990, 990-EZ, or 990-PF with the IRS or to submit an annual electronic notice, Form 990-N (e-Postcard), to the IRS. Irs 1040 ez 2012 Tax-exempt organizations failing to file an annual return or submit an annual notice as required for 3 consecutive years will automatically lose their tax-exempt status. Irs 1040 ez 2012    2An organization exempt under a subsection of section 501 other than 501(c)(3) can establish a charitable fund, contributions to which are deductible. Irs 1040 ez 2012 Such a fund must itself meet the requirements of section 501(c)(3) and the related notice requirements of section 508(a). Irs 1040 ez 2012    3Contributions to volunteer fire companies and similar organizations are deductible, but only if made for exclusively public purposes. Irs 1040 ez 2012    4Deductible as a business expense to the extent allowed by section 192. Irs 1040 ez 2012    5Deductible as a business expense to the extent allowed by section 194A. Irs 1040 ez 2012 6Application is by letter to the address shown on Form 8718. Irs 1040 ez 2012 A copy of the organizing document should be attached and the letter should be signed by an officer. Irs 1040 ez 2012    7Contributions to these organizations are deductible only if 90% or more of the organization's members are war veterans. Irs 1040 ez 2012    8For limits on the use of Form 990-EZ, see chapter 2 and the general instructions for Form 990-EZ (or Form 990). Irs 1040 ez 2012    9Although the organization files a partnership return, all distributions are deemed dividends. Irs 1040 ez 2012 The members are not entitled to pass through treatment of the organization's income or expenses. Irs 1040 ez 2012    10Form 1120-POL is required only if the organization has taxable income as defined in section 527(c). Irs 1040 ez 2012    11Only required to annually file so much of the Form 990 that relates to the names and addresses of the officers, directors, trustees, and key employees, and their titles, compensation, and hours devoted to their positions (Part VII of Form 990), and to complete Item I in the Heading of Form 990 to confirm its tax-exempt status under section 501(c)(28). Irs 1040 ez 2012    12See section 501(q) if the organization provides credit counseling services and seeks recognition of exemption under section 501(c)(4). Irs 1040 ez 2012 Use Form 1024 if applying for recognition under section 501(c)(4). Irs 1040 ez 2012    13See section 501(c)(29) for details. Irs 1040 ez 2012    14See Revenue Procedure 2012-11, sec. Irs 1040 ez 2012 4. Irs 1040 ez 2012 01, 2012-7 I. Irs 1040 ez 2012 R. Irs 1040 ez 2012 B. Irs 1040 ez 2012 368, for details. Irs 1040 ez 2012 Appendix. Irs 1040 ez 2012 Sample Articles of Organization The following are examples of Articles of Incorporation (Draft A) and a declaration of trust (Draft B) that contain the required information as to purposes and powers of an organization and disposition of its assets upon dissolution. Irs 1040 ez 2012 You should bear in mind that requirements for these instruments may vary under applicable state law. Irs 1040 ez 2012 See Private Foundations and Public Charities , earlier for the special provisions required in a private foundation's governing instrument in order for it to qualify for exemption. Irs 1040 ez 2012 DRAFT A  Articles of Incorporation of the undersigned, a majority of whom are citizens of the United States, desiring to form a Non-Profit Corporation under the Non-Profit Corporation Law of , do hereby certify: First: The name of the Corporation shall be . Irs 1040 ez 2012 Second: The place in this state where the principal office of the Corporation is to be located is the City of , County. Irs 1040 ez 2012 Third: Said corporation is organized exclusively for charitable, religious, educational, and scientific purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs 1040 ez 2012 Fourth: The names and addresses of the persons who are the initial trustees of the corporation are as follows: Name , Address Fifth: No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article Third hereof. Irs 1040 ez 2012 No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Irs 1040 ez 2012 Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs 1040 ez 2012   If reference to federal law in articles of incorporation imposes a limitation that is invalid in your state, you may wish to substitute the following for the last sentence of the preceding paragraph: “Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation. Irs 1040 ez 2012 ” Sixth: Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Irs 1040 ez 2012 Any such assets not so disposed of shall be disposed of by a Court of Competent Jurisdiction of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes. Irs 1040 ez 2012   In witness whereof, we have hereunto subscribed our names this day of , 20. Irs 1040 ez 2012 Appendix. Irs 1040 ez 2012 Sample Articles of Organization, continued Draft B The Charitable Trust. Irs 1040 ez 2012 Declaration of Trust made as of the day of , 20 , by , of , and , of , who hereby declare and agree that they have received this day from , as Donor, the sum of Ten Dollars ($10) and that they will hold and manage the same, and any additions to it, in trust, as follows: First: This trust shall be called “The Charitable Trust. Irs 1040 ez 2012 ” Second: The trustees may receive and accept property, whether real, personal, or mixed, by way of gift, bequest, or devise, from any person, firm, trust, or corporation, to be held, administered, and disposed of in accordance with and pursuant to the provisions of this Declaration of Trust; but no gift, bequest, or devise of any such property shall be received and accepted if it is conditioned or limited in such manner as to require the disposition of the income or its principal to any person or organization other than a “charitable organization” or for other than “charitable purposes” within the meaning of such terms as defined in Article Third of this Declaration of Trust, or as shall, in the opinion of the trustees, jeopardize the federal income tax exemption of this trust pursuant to section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs 1040 ez 2012 Third: a) The principal and income of all property received and accepted by the trustees to be administered under this Declaration of Trust shall be held in trust by them, and the trustees may make payments or distributions from income or principal, or both, to or for the use of such charitable organizations, within the meaning of that term as defined in paragraph C, in such amounts and for such charitable purposes of the trust as the trustees shall from time to time select and determine; and the trustees may make payments or distributions from income or principal, or both, directly for such charitable purposes, within the meaning of that term as defined in paragraph D, in such amounts as the trustees shall from time to time select and determine without making use of any other charitable organization. Irs 1040 ez 2012 The trustees may also make payments or distributions of all or any part of the income or principal to states, territories, or possessions of the United States, any political subdivision of any of the foregoing, or to the United States or the District of Columbia but only for charitable purposes within the meaning of that term as defined in paragraph D. Irs 1040 ez 2012 Income or principal derived from contributions by corporations shall be distributed by the trustees for use solely within the United States or its possessions. Irs 1040 ez 2012 No part of the net earnings of this trust shall inure or be payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of this trust shall be the carrying on of propaganda, or otherwise attempting to influence legislation. Irs 1040 ez 2012 No part of the activities of this trust shall be the participation in, or intervention in (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. Irs 1040 ez 2012 b) The trust shall continue forever unless the trustees terminate it and distribute all of the principal and income, which action may be taken by the trustees in their discretion at any time. Irs 1040 ez 2012 On such termination, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Irs 1040 ez 2012 The donor authorizes and empowers the trustees to form and organize a nonprofit corporation limited to the uses and purposes provided for in this Declaration of Trust, such corporation to be organized under the laws of any state or under the laws of the United States as may be determined by the trustees; such corporation when organized to have power to administer and control the affairs and property and to carry out the uses, objects, and purposes of this trust. Irs 1040 ez 2012 Upon the creation and organization of such corporation, the trustees are authorized and empowered to convey, transfer, and deliver to such corporation all the property and assets to which this trust may be or become entitled. Irs 1040 ez 2012 The charter, bylaws, and other provisions for the organization and management of such corporation and its affairs and property shall be such as the trustees shall determine, consistent with the provisions of this paragraph. Irs 1040 ez 2012 c) In this Declaration of Trust and in any amendments to it, references to “charitable organizations” or “charitable organization” mean corporations, trusts, funds, foundations, or community chests created or organized in the United States or in any of its possessions, whether under the laws of the United States, any state or territory, the District of Columbia, or any possession of the United States, organized and operated exclusively for charitable purposes, no part of the net earnings of which inures or is payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which do not participate in or intervene in (including the publishing or distributing of statements) any political campaign on behalf of or in opposition to any candidate for public office. Irs 1040 ez 2012 It is intended that the organization described in this paragraph C shall be entitled to exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs 1040 ez 2012 d) In this Declaration of Trust and in any amendments to it, the term “charitable purposes” shall be limited to and shall include only religious, charitable, scientific, literary, or educational purposes within the meaning of those terms as used in section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, but only such purposes as also constitute public charitable purposes under the law of trusts of the State of. Irs 1040 ez 2012 Fourth: This Declaration of Trust may be amended at any time or times by written instrument or instruments signed and sealed by the trustees, and acknowledged by any of the trustees, provided that no amendment shall authorize the trustees to conduct the affairs of this trust in any manner or for any purpose contrary to the provisions of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs 1040 ez 2012 An amendment of the provisions of this Article Fourth (or any amendment to it) shall be valid only if and to the extent that such amendment further restricts the trustees' amending power. Irs 1040 ez 2012 All instruments amending this Declaration of Trust shall be noted upon or kept attached to the executed original of this Declaration of Trust held by the trustees. Irs 1040 ez 2012 Fifth: Any trustee under this Declaration of Trust may, by written instrument, signed and acknowledged, resign his office. Irs 1040 ez 2012 The number of trustees shall be at all times not less than two, and whenever for any reason the number is reduced to one, there shall be, and at any other time there may be, appointed one or more additional trustees. Irs 1040 ez 2012 Appointments shall be made by the trustee or trustees for the time in office by written instruments signed and acknowledged. Irs 1040 ez 2012 Any succeeding or additional trustee shall, upon his or her acceptance of the office by written instrument signed and acknowledged, have the same powers, rights, and duties, and the same title to the trust estate jointly with the surviving or remaining trustee or trustees as if originally appointed. Irs 1040 ez 2012  None of the trustees shall be required to furnish any bond or surety. Irs 1040 ez 2012 None of them shall be responsible or liable for the acts or omissions of any other of the trustees or of any predecessor or of a custodian, agent, depositary, or counsel selected with reasonable care. Irs 1040 ez 2012  The one or more trustees, whether original or successor, for the time being in office, shall have full authority to act even though one or more vacancies may exist. Irs 1040 ez 2012 A trustee may, by appropriate written instrument, delegate all or any part of his or her powers to another or others of the trustees for such periods and subject to such conditions as such delegating trustee may determine. Irs 1040 ez 2012  The trustees serving under this Declaration of Trust are authorized to pay to themselves amounts for reasonable expenses incurred and reasonable compensation for services rendered in the administration of this trust, but in no event shall any trustee who has made a contribution to this trust ever receive any compensation thereafter. Irs 1040 ez 2012 Sixth: In extension and not in limitation of the common law and statutory powers of trustees and other powers granted in this Declaration of Trust, the trustees shall have the following discretionary powers. Irs 1040 ez 2012 a) To invest and reinvest the principal and income of the trust in such property, real, personal, or mixed, and in such manner as they shall deem proper, and from time to time to change investments as they shall deem advisable; to invest in or retain any stocks, shares, bonds, notes, obligations, or personal or real property (including without limitation any interests in or obligations of any corporation, association, business trust, investment trust, common trust fund, or investment company) although some or all of the property so acquired or retained is of a kind or size which but for this express authority would not be considered proper and although all of the trust funds are invested in the securities of one company. Irs 1040 ez 2012 No principal or income, however, shall be loaned, directly or indirectly, to any trustee or to anyone else, corporate or otherwise, who has at any time made a contribution to this trust, nor to anyone except on the basis of an adequate interest charge and with adequate security. Irs 1040 ez 2012 b) To sell, lease, or exchange any personal, mixed, or real property, at public auction or by private contract, for such consideration and on such terms as to credit or otherwise, and to make such contracts and enter into such undertakings relating to the trust property, as they consider advisable, whether or not such leases or contracts may extend beyond the duration of the trust. Irs 1040 ez 2012 c) To borrow money for such periods, at such rates of interest, and upon such terms as the trustees consider advisable, and as security for such loans to mortgage or pledge any real or personal property with or without power of sale; to acquire or hold any real or personal property, subject to any mortgage or pledge on or of property acquired or held by this trust. Irs 1040 ez 2012 d) To execute and deliver deeds, assignments, transfers, mortgages, pledges, leases, covenants, contracts, promissory notes, releases, and other instruments, sealed or unsealed, incident to any transaction in which they engage. Irs 1040 ez 2012 e) To vote, to give proxies, to participate in the reorganization, merger, or consolidation of any concern, or in the sale, lease, disposition, or distribution of its assets; to join with other security holders in acting through a committee, depositary, voting trustees, or otherwise, and in this connection to delegate authority to such committee, depositary, or trustees and to deposit securities with them or transfer securities to them; to pay assessments levied on securities or to exercise subscription rights in respect of securities. Irs 1040 ez 2012 f) To employ a bank or trust company as custodian of any funds or securities and to delegate to it such powers as they deem appropriate; to hold trust property without indication of fiduciary capacity but only in the name of a registered nominee, provided the trust property is at all times identified as such on the books of the trust; to keep any or all of the trust property or funds in any place or places in the United States of America; to employ clerks, accountants, investment counsel, investment agents, and any special services, and to pay the reasonable compensation and expenses of all such services in addition to the compensation of the trustees. Irs 1040 ez 2012 Seventh: The trustees' powers are exercisable solely in the fiduciary capacity consistent with and in furtherance of the charitable purposes of this trust as specified in Article Third and not otherwise. Irs 1040 ez 2012 Eighth: In this Declaration of Trust and in any amendment to it, references to “trustees” mean the one or more trustees, whether original or successor, for the time being in office. Irs 1040 ez 2012 Ninth: Any person may rely on a copy, certified by a notary public, of the executed original of this Declaration of Trust held by the trustees, and of any of the notations on it and writings attached to it, as fully as he might rely on the original documents themselves. Irs 1040 ez 2012 Any such person may rely fully on any statements of fact certified by anyone who appears from such original documents or from such certified copy to be a trustee under this Declaration of Trust. Irs 1040 ez 2012 No one dealing with the trustees need inquire concerning the validity of anything the trustees purport to do. Irs 1040 ez 2012 No one dealing with the trustees need see to the application of anything paid or transferred to or upon the order of the trustees of the trust. Irs 1040 ez 2012 Tenth: This Declaration of Trust is to be governed in all respects by the laws of the State of . Irs 1040 ez 2012 Trustee Trustee Prev  Up  Next   Home   More Online Publications