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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Military Tax Calculator

1040ez Income Tax FormFile 2009 Tax Return Online FreeCan I E File A 2012 Tax ReturnFree Federal Tax FilingHow Do I File An Amended Federal Tax ReturnHow To File A 1040ez OnlineHow To Fill Out 1040ez 2012Free Online Tax Filing1040nr Tax CalculatorFile Taxes Online For FreeAmend Federal Tax ReturnState Tax Preparation FreeE FileHr Block 1040nrFile My 2011 Tax Return For FreeEz Tax ReturnIrs Form 1040ez 2014Efile Tax Return1040 Ez OnlineIrs 2012 Tax Forms 1040ezFreetaxusa2011Taxact 2012 Login InIrs2011 Tax FormsTax 1040ezMyfreetaxesFree State Returns OnlineState Tax EfileTax Act 2012 ReturnForm 1040x 2009Printable 1040ez Tax Form1040ez Instructions 2011Back Taxes1040x FormRevised Tax ReturnWww Irs Gov ComCan I Still File Taxes For 2012Free Fed And State EfileIrs Amended Return FormFile Tax Amendment

Military Tax Calculator

Military tax calculator 4. Military tax calculator   How Income of Aliens Is Taxed Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident Aliens Nonresident AliensTrade or Business in the United States Effectively Connected Income The 30% Tax Income From Real Property Transportation Tax Interrupted Period of Residence Expatriation TaxExpatriation Before June 4, 2004 Expatriation After June 3, 2004, and Before June 17, 2008 Expatriation After June 16, 2008 Introduction Resident and nonresident aliens are taxed in different ways. Military tax calculator Resident aliens are generally taxed in the same way as U. Military tax calculator S. Military tax calculator citizens. Military tax calculator Nonresident aliens are taxed based on the source of their income and whether or not their income is effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator The following discussions will help you determine if income you receive during the tax year is effectively connected with a U. Military tax calculator S. Military tax calculator trade or business and how it is taxed. Military tax calculator Topics - This chapter discusses: Income that is effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator Income that is not effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator Interrupted period of residence. Military tax calculator Expatriation tax. Military tax calculator Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 1212 List of Original Issue Discount Instruments Form (and Instructions) 6251 Alternative Minimum Tax—Individuals Schedule D (Form 1040) Capital Gains and Losses See chapter 12 for information about getting these publications and forms. Military tax calculator Resident Aliens Resident aliens are generally taxed in the same way as U. Military tax calculator S. Military tax calculator citizens. Military tax calculator This means that their worldwide income is subject to U. Military tax calculator S. Military tax calculator tax and must be reported on their U. Military tax calculator S. Military tax calculator tax return. Military tax calculator Income of resident aliens is subject to the graduated tax rates that apply to U. Military tax calculator S. Military tax calculator citizens. Military tax calculator Resident aliens use the Tax Table or Tax Computation Worksheets located in the Form 1040 instructions, which apply to U. Military tax calculator S. Military tax calculator citizens. Military tax calculator Nonresident Aliens A nonresident alien's income that is subject to U. Military tax calculator S. Military tax calculator income tax must be divided into two categories: Income that is effectively connected with a trade or business in the United States, and Income that is not effectively connected with a trade or business in the United States (discussed under The 30% Tax, later). Military tax calculator The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Military tax calculator These are the same rates that apply to U. Military tax calculator S. Military tax calculator citizens and residents. Military tax calculator Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Military tax calculator If you were formerly a U. Military tax calculator S. Military tax calculator citizen or resident alien, these rules may not apply. Military tax calculator See Expatriation Tax, later, in this chapter. Military tax calculator Trade or Business in the United States Generally, you must be engaged in a trade or business during the tax year to be able to treat income received in that year as effectively connected with that trade or business. Military tax calculator Whether you are engaged in a trade or business in the United States depends on the nature of your activities. Military tax calculator The discussions that follow will help you determine whether you are engaged in a trade or business in the United States. Military tax calculator Personal Services If you perform personal services in the United States at any time during the tax year, you usually are considered engaged in a trade or business in the United States. Military tax calculator Certain compensation paid to a nonresident alien by a foreign employer is not included in gross income. Military tax calculator For more information, see Services Performed for Foreign Employer in chapter 3. Military tax calculator Other Trade or Business Activities Other examples of being engaged in a trade or business in the United States follow. Military tax calculator Students and trainees. Military tax calculator   You are considered engaged in a trade or business in the United States if you are temporarily present in the United States as a nonimmigrant under an “F,” “J,” “M,” or “Q” visa. Military tax calculator A nonresident alien temporarily present in the United States under a “J” visa includes a nonresident alien individual admitted to the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. Military tax calculator The taxable part of any scholarship or fellowship grant that is U. Military tax calculator S. Military tax calculator source income is treated as effectively connected with a trade or business in the United States. Military tax calculator Business operations. Military tax calculator   If you own and operate a business in the United States selling services, products, or merchandise, you are, with certain exceptions, engaged in a trade or business in the United States. Military tax calculator Partnerships. Military tax calculator   If you are a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States, you are considered to be engaged in a trade or business in the United States. Military tax calculator Beneficiary of an estate or trust. Military tax calculator   If you are the beneficiary of an estate or trust that is engaged in a trade or business in the United States, you are treated as being engaged in the same trade or business. Military tax calculator Trading in stocks, securities, and commodities. Military tax calculator   If your only U. Military tax calculator S. Military tax calculator business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U. Military tax calculator S. Military tax calculator resident broker or other agent, you are not engaged in a trade or business in the United States. Military tax calculator   For transactions in stocks or securities, this applies to any nonresident alien, including a dealer or broker in stocks and securities. Military tax calculator   For transactions in commodities, this applies to commodities that are usually traded on an organized commodity exchange and to transactions that are usually carried out at such an exchange. Military tax calculator   This discussion does not apply if you have a U. Military tax calculator S. Military tax calculator office or other fixed place of business at any time during the tax year through which, or by the direction of which, you carry out your transactions in stocks, securities, or commodities. Military tax calculator Trading for a nonresident alien's own account. Military tax calculator   You are not engaged in a trade or business in the United States if trading for your own account in stocks, securities, or commodities is your only U. Military tax calculator S. Military tax calculator business activity. Military tax calculator This applies even if the trading takes place while you are present in the United States or is done by your employee or your broker or other agent. Military tax calculator   This does not apply to trading for your own account if you are a dealer in stocks, securities, or commodities. Military tax calculator This does not necessarily mean, however, that as a dealer you are considered to be engaged in a trade or business in the United States. Military tax calculator Determine that based on the facts and circumstances in each case or under the rules given above in Trading in stocks, securities, and commodities . Military tax calculator Effectively Connected Income If you are engaged in a U. Military tax calculator S. Military tax calculator trade or business, all income, gain, or loss for the tax year that you get from sources within the United States (other than certain investment income) is treated as effectively connected income. Military tax calculator This applies whether or not there is any connection between the income and the trade or business being carried on in the United States during the tax year. Military tax calculator Two tests, described next under Investment Income, determine whether certain items of investment income (such as interest, dividends, and royalties) are treated as effectively connected with that business. Military tax calculator In limited circumstances, some kinds of foreign source income may be treated as effectively connected with a trade or business in the United States. Military tax calculator For a discussion of these rules, see Foreign Income , later. Military tax calculator Investment Income Investment income from U. Military tax calculator S. Military tax calculator sources that may or may not be treated as effectively connected with a U. Military tax calculator S. Military tax calculator trade or business generally falls into the following three categories. Military tax calculator Fixed or determinable income (interest, dividends, rents, royalties, premiums, annuities, etc. Military tax calculator ). Military tax calculator Gains (some of which are considered capital gains) from the sale or exchange of the following types of property. Military tax calculator Timber, coal, or domestic iron ore with a retained economic interest. Military tax calculator Patents, copyrights, and similar property on which you receive contingent payments after October 4, 1966. Military tax calculator Patents transferred before October 5, 1966. Military tax calculator Original issue discount obligations. Military tax calculator Capital gains (and losses). Military tax calculator Use the two tests, described next, to determine whether an item of U. Military tax calculator S. Military tax calculator source income falling in one of the three categories above and received during the tax year is effectively connected with your U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator If the tests indicate that the item of income is effectively connected, you must include it with your other effectively connected income. Military tax calculator If the item of income is not effectively connected, include it with all other income discussed under The 30% Tax later, in this chapter. Military tax calculator Asset-use test. Military tax calculator   This test usually applies to income that is not directly produced by trade or business activities. Military tax calculator Under this test, if an item of income is from assets (property) used in, or held for use in, the trade or business in the United States, it is considered effectively connected. Military tax calculator   An asset is used in, or held for use in, the trade or business in the United States if the asset is: Held for the principal purpose of promoting the conduct of a trade or business in the United States, Acquired and held in the ordinary course of the trade or business conducted in the United States (for example, an account receivable or note receivable arising from that trade or business), or Otherwise held to meet the present needs of the trade or business in the United States and not its anticipated future needs. Military tax calculator Generally, stock of a corporation is not treated as an asset used in, or held for use in, a trade or business in the United States. Military tax calculator Business-activities test. Military tax calculator   This test usually applies when income, gain, or loss comes directly from the active conduct of the trade or business. Military tax calculator The business-activities test is most important when: Dividends or interest are received by a dealer in stocks or securities, Royalties are received in the trade or business of licensing patents or similar property, or Service fees are earned by a servicing business. Military tax calculator Under this test, if the conduct of the U. Military tax calculator S. Military tax calculator trade or business was a material factor in producing the income, the income is considered effectively connected. Military tax calculator Personal Service Income You usually are engaged in a U. Military tax calculator S. Military tax calculator trade or business when you perform personal services in the United States. Military tax calculator Personal service income you receive in a tax year in which you are engaged in a U. Military tax calculator S. Military tax calculator trade or business is effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator Income received in a year other than the year you performed the services is also effectively connected if it would have been effectively connected if received in the year you performed the services. Military tax calculator Personal service income includes wages, salaries, commissions, fees, per diem allowances, and employee allowances and bonuses. Military tax calculator The income may be paid to you in the form of cash, services, or property. Military tax calculator If you are engaged in a U. Military tax calculator S. Military tax calculator trade or business only because you perform personal services in the United States during the tax year, income and gains from assets, and gains and losses from the sale or exchange of capital assets are generally not effectively connected with your trade or business. Military tax calculator However, if there is a direct economic relationship between your holding of the asset and your trade or business of performing personal services, the income, gain, or loss is effectively connected. Military tax calculator Pensions. Military tax calculator   If you were a nonresident alien engaged in a U. Military tax calculator S. Military tax calculator trade or business after 1986 because you performed personal services in the United States, and you later receive a pension or retirement pay attributable to these services, such payments are effectively connected income in each year you receive them. Military tax calculator This is true whether or not you are engaged in a U. Military tax calculator S. Military tax calculator trade or business in the year you receive the retirement pay. Military tax calculator Transportation Income Transportation income (defined in chapter 2) is effectively connected if you meet both of the following conditions. Military tax calculator You had a fixed place of business in the United States involved in earning the income. Military tax calculator At least 90% of your U. Military tax calculator S. Military tax calculator source transportation income is attributable to regularly scheduled transportation. Military tax calculator “Fixed place of business” generally means a place, site, structure, or other similar facility through which you engage in a trade or business. Military tax calculator “Regularly scheduled transportation” means that a ship or aircraft follows a published schedule with repeated sailings or flights at regular intervals between the same points for voyages or flights that begin or end in the United States. Military tax calculator This definition applies to both scheduled and chartered air transportation. Military tax calculator If you do not meet the two conditions above, the income is not effectively connected and is taxed at a 4% rate. Military tax calculator See Transportation Tax, later, in this chapter. Military tax calculator Business Profits and Losses and Sales Transactions All profits or losses from U. Military tax calculator S. Military tax calculator sources that are from the operation of a business in the United States are effectively connected with a trade or business in the United States. Military tax calculator For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income. Military tax calculator A share of U. Military tax calculator S. Military tax calculator source profits or losses of a partnership that is engaged in a trade or business in the United States is also effectively connected with a trade or business in the United States. Military tax calculator Real Property Gain or Loss Gains and losses from the sale or exchange of U. Military tax calculator S. Military tax calculator real property interests (whether or not they are capital assets) are taxed as if you are engaged in a trade or business in the United States. Military tax calculator You must treat the gain or loss as effectively connected with that trade or business. Military tax calculator U. Military tax calculator S. Military tax calculator real property interest. Military tax calculator   This is any interest in real property located in the United States or the U. Military tax calculator S. Military tax calculator Virgin Islands or any interest (other than as a creditor) in a domestic corporation that is a U. Military tax calculator S. Military tax calculator real property holding corporation. Military tax calculator Real property includes the following. Military tax calculator Land and unsevered natural products of the land, such as growing crops and timber, and mines, wells, and other natural deposits. Military tax calculator Improvements on land, including buildings, other permanent structures, and their structural components. Military tax calculator Personal property associated with the use of real property, such as equipment used in farming, mining, forestry, or construction or property used in lodging facilities or rented office space, unless the personal property is: Disposed of more than one year before or after the disposition of the real property, or Separately sold to persons unrelated either to the seller or to the buyer of the real property. Military tax calculator U. Military tax calculator S. Military tax calculator real property holding corporation. Military tax calculator   A corporation is a U. Military tax calculator S. Military tax calculator real property holding corporation if the fair market value of the corporation's U. Military tax calculator S. Military tax calculator real property interests are at least 50% of the total fair market value of: The corporation's U. Military tax calculator S. Military tax calculator real property interests, plus The corporation's interests in real property located outside the United States, plus The corporation's other assets that are used in, or held for use in, a trade or business. Military tax calculator   Gain or loss on the sale of the stock in any domestic corporation is taxed as if you are engaged in a U. Military tax calculator S. Military tax calculator trade or business unless you establish that the corporation is not a U. Military tax calculator S. Military tax calculator real property holding corporation. Military tax calculator   A U. Military tax calculator S. Military tax calculator real property interest does not include a class of stock of a corporation that is regularly traded on an established securities market, unless you hold more than 5% of the fair market value of that class of stock. Military tax calculator An interest in a foreign corporation owning U. Military tax calculator S. Military tax calculator real property generally is not a U. Military tax calculator S. Military tax calculator real property interest unless the corporation chooses to be treated as a domestic corporation. Military tax calculator Qualified investment entities. Military tax calculator   Special rules apply to qualified investment entities (QIEs). Military tax calculator A QIE is any real estate investment trust (REIT) or any regulated investment company (RIC) that is a U. Military tax calculator S. Military tax calculator real property holding corporation. Military tax calculator    Generally, any distribution from a QIE to a shareholder that is attributable to gain from the sale or exchange of a U. Military tax calculator S. Military tax calculator real property interest is treated as a U. Military tax calculator S. Military tax calculator real property gain by the shareholder receiving the distribution. Military tax calculator A distribution by a QIE on stock regularly traded on an established securities market in the United States is not treated as gain from the sale or exchange of a U. Military tax calculator S. Military tax calculator real property interest if you did not own more than 5% of that stock at any time during the 1-year period ending on the date of the distribution. Military tax calculator A distribution that you do not treat as gain from the sale or exchange of a U. Military tax calculator S. Military tax calculator real property interest is included in your gross income as a regular dividend. Military tax calculator Note. Military tax calculator Beginning January 1, 2014 (unless extended by legislation), a RIC that is a U. Military tax calculator S. Military tax calculator real property holding corporation will only be treated as a QIE for certain distributions from the RIC that are directly or indirectly attributable to distributions received by the RIC from a REIT. Military tax calculator Domestically controlled QIE. Military tax calculator   The sale of an interest in a domestically controlled QIE is not the sale of a U. Military tax calculator S. Military tax calculator real property interest. Military tax calculator The entity is domestically controlled if at all times during the testing period less than 50% in value of its stock was held, directly or indirectly, by foreign persons. Military tax calculator The testing period is the shorter of (a) the 5-year period ending on the date of disposition, or (b) the period during which the entity was in existence. Military tax calculator Wash sale. Military tax calculator    If you dispose of an interest in a domestically controlled QIE in an applicable wash sale transaction, special rules apply. Military tax calculator An applicable wash sale transaction is one in which you: Dispose of an interest in the domestically controlled QIE during the 30-day period before the ex-dividend date of a distribution that you would (but for the disposition) have treated as gain from the sale or exchange of a U. Military tax calculator S. Military tax calculator real property interest, and Acquire, or enter into a contract or option to acquire, a substantially identical interest in that entity during the 61-day period that began on the first day of the 30-day period. Military tax calculator If this occurs, you are treated as having gain from the sale or exchange of a U. Military tax calculator S. Military tax calculator real property interest in an amount equal to the distribution made after June 15, 2006, that would have been treated as such gain. Military tax calculator This also applies to any substitute dividend payment. Military tax calculator   A transaction is not treated as an applicable wash sale transaction if: You actually receive the distribution from the domestically controlled QIE related to the interest disposed of, or acquired, in the transaction, or You dispose of any class of stock in a QIE that is regularly traded on an established securities market in the United States but only if you did not own more than 5% of that class of stock at any time during the 1-year period ending on the date of the distribution. Military tax calculator Alternative minimum tax. Military tax calculator   There may be a minimum tax on your net gain from the disposition of U. Military tax calculator S. Military tax calculator real property interests. Military tax calculator Figure the amount of this tax, if any, on Form 6251. Military tax calculator Withholding of tax. Military tax calculator   If you dispose of a U. Military tax calculator S. Military tax calculator real property interest, the buyer may have to withhold tax. Military tax calculator See the discussion of Tax Withheld on Real Property Sales in chapter 8. Military tax calculator Foreign Income You must treat three kinds of foreign source income as effectively connected with a trade or business in the United States if: You have an office or other fixed place of business in the United States to which the income can be attributed, That office or place of business is a material factor in producing the income, and The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. Military tax calculator An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. Military tax calculator The three kinds of foreign source income are listed below. Military tax calculator Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the United States or from any interest in such property. Military tax calculator Included are rents or royalties for the use, or for the privilege of using, outside the United States, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the United States. Military tax calculator Dividends, interest, or amounts received for the provision of a guarantee of indebtedness issued after September 27, 2010, from the active conduct of a banking, financing, or similar business in the United States. Military tax calculator A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the transferred security. Military tax calculator Income, gain, or loss from the sale outside the United States, through the U. Military tax calculator S. Military tax calculator office or other fixed place of business, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. Military tax calculator Item (3) will not apply if you sold the property for use, consumption, or disposition outside the United States and an office or other fixed place of business in a foreign country was a material factor in the sale. Military tax calculator Any foreign source income that is equivalent to any item of income described above is treated as effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator For example, foreign source interest and dividend equivalents are treated as U. Military tax calculator S. Military tax calculator effectively connected income if the income is derived by a foreign person in the active conduct of a banking, financing, or similar business within the United States. Military tax calculator Tax on Effectively Connected Income Income you receive during the tax year that is effectively connected with your trade or business in the United States is, after allowable deductions, taxed at the rates that apply to U. Military tax calculator S. Military tax calculator citizens and residents. Military tax calculator Generally, you can receive effectively connected income only if you are a nonresident alien engaged in trade or business in the United States during the tax year. Military tax calculator However, income you receive from the sale or exchange of property, the performance of services, or any other transaction in another tax year is treated as effectively connected in that year if it would have been effectively connected in the year the transaction took place or you performed the services. Military tax calculator Example. Military tax calculator Ted Richards, a nonresident alien, entered the United States in August 2012, to perform personal services in the U. Military tax calculator S. Military tax calculator office of his overseas employer. Military tax calculator He worked in the U. Military tax calculator S. Military tax calculator office until December 25, 2012, but did not leave this country until January 11, 2013. Military tax calculator On January 8, 2013, he received his final paycheck for services performed in the United States during 2012. Military tax calculator All of Ted's income during his stay here is U. Military tax calculator S. Military tax calculator source income. Military tax calculator During 2012, Ted was engaged in the trade or business of performing personal services in the United States. Military tax calculator Therefore, all amounts paid to him in 2012 for services performed in the United States during 2012 are effectively connected with that trade or business during 2012. Military tax calculator The salary payment Ted received in January 2013 is U. Military tax calculator S. Military tax calculator source income to him in 2013. Military tax calculator It is effectively connected with a trade or business in the United States because he was engaged in a trade or business in the United States during 2012 when he performed the services that earned the income. Military tax calculator Real property income. Military tax calculator   You may be able to choose to treat all income from real property as effectively connected. Military tax calculator See Income From Real Property , later, in this chapter. Military tax calculator The 30% Tax Tax at a 30% (or lower treaty) rate applies to certain items of income or gains from U. Military tax calculator S. Military tax calculator sources but only if the items are not effectively connected with your U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator Fixed or Determinable Income The 30% (or lower treaty) rate applies to the gross amount of U. Military tax calculator S. Military tax calculator source fixed or determinable annual or periodic gains, profits, or income. Military tax calculator Income is fixed when it is paid in amounts known ahead of time. Military tax calculator Income is determinable whenever there is a basis for figuring the amount to be paid. Military tax calculator Income can be periodic if it is paid from time to time. Military tax calculator It does not have to be paid annually or at regular intervals. Military tax calculator Income can be determinable or periodic even if the length of time during which the payments are made is increased or decreased. Military tax calculator Items specifically included as fixed or determinable income are interest (other than original issue discount), dividends, dividend equivalent payments (defined in chapter 2), rents, premiums, annuities, salaries, wages, and other compensation. Military tax calculator A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the transferred security. Military tax calculator Other items of income, such as royalties, also may be subject to the 30% tax. Military tax calculator Some fixed or determinable income may be exempt from U. Military tax calculator S. Military tax calculator tax. Military tax calculator See chapter 3 if you are not sure whether the income is taxable. Military tax calculator Original issue discount (OID). Military tax calculator   If you sold, exchanged, or received a payment on a bond or other debt instrument that was issued at a discount after March 31, 1972, all or part of the original issue discount (OID) (other than portfolio interest) may be subject to the 30% tax. Military tax calculator The amount of OID is the difference between the stated redemption price at maturity and the issue price of the debt instrument. Military tax calculator The 30% tax applies in the following circumstances. Military tax calculator You received a payment on a debt instrument. Military tax calculator In this case, the amount of OID subject to tax is the OID that accrued while you held the debt instrument minus the OID previously taken into account. Military tax calculator But the tax on the OID cannot be more than the payment minus the tax on the interest payment on the debt instrument. Military tax calculator You sold or exchanged the debt instrument. Military tax calculator The amount of OID subject to tax is the OID that accrued while you held the debt instrument minus the amount already taxed in (1) above. Military tax calculator   Report on your return the amount of OID shown on Form 1042-S, Foreign Person's U. Military tax calculator S. Military tax calculator Source Income Subject to Withholding, if you bought the debt instrument at original issue. Military tax calculator However, you must recompute your proper share of OID shown on Form 1042-S if any of the following apply. Military tax calculator You bought the debt instrument at a premium or paid an acquisition premium. Military tax calculator The debt instrument is a stripped bond or a stripped coupon (including zero coupon instruments backed by U. Military tax calculator S. Military tax calculator Treasury securities). Military tax calculator The debt instrument is a contingent payment or inflation-indexed debt instrument. Military tax calculator For the definition of premium and acquisition premium and instructions on how to recompute OID, get Publication 1212. Military tax calculator   If you held a bond or other debt instrument that was issued at a discount before April 1, 1972, contact the IRS for further information. Military tax calculator See chapter 12. Military tax calculator Gambling Winnings In general, nonresident aliens are subject to the 30% tax on the gross proceeds from gambling won in the United States if that income is not effectively connected with a U. Military tax calculator S. Military tax calculator trade or business and is not exempted by treaty. Military tax calculator However, no tax is imposed on nonbusiness gambling income a nonresident alien wins playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States. Military tax calculator Nonresident aliens are taxed at graduated rates on net gambling income won in the United States that is effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator Social Security Benefits A nonresident alien must include 85% of any U. Military tax calculator S. Military tax calculator social security benefit (and the social security equivalent part of a tier 1 railroad retirement benefit) in U. Military tax calculator S. Military tax calculator source fixed or determinable annual or periodic income. Military tax calculator Social security benefits include monthly retirement, survivor, and disability benefits. Military tax calculator This income is exempt under some tax treaties. Military tax calculator See Table 1 in Publication 901, U. Military tax calculator S. Military tax calculator Tax Treaties, for a list of tax treaties that exempt U. Military tax calculator S. Military tax calculator social security benefits from U. Military tax calculator S. Military tax calculator tax. Military tax calculator Sales or Exchanges of Capital Assets These rules apply only to those capital gains and losses from sources in the United States that are not effectively connected with a trade or business in the United States. Military tax calculator They apply even if you are engaged in a trade or business in the United States. Military tax calculator These rules do not apply to the sale or exchange of a U. Military tax calculator S. Military tax calculator real property interest or to the sale of any property that is effectively connected with a trade or business in the United States. Military tax calculator See Real Property Gain or Loss , earlier, under Effectively Connected Income. Military tax calculator A capital asset is everything you own except: Inventory. Military tax calculator Business accounts or notes receivable. Military tax calculator Depreciable property used in a trade or business. Military tax calculator Real property used in a trade or business. Military tax calculator Supplies regularly used in a trade or business. Military tax calculator Certain copyrights, literary or musical or artistic compositions, letters or memoranda, or similar property. Military tax calculator Certain U. Military tax calculator S. Military tax calculator government publications. Military tax calculator Certain commodities derivative financial instruments held by a commodities derivatives dealer. Military tax calculator Hedging transactions. Military tax calculator A capital gain is a gain on the sale or exchange of a capital asset. Military tax calculator A capital loss is a loss on the sale or exchange of a capital asset. Military tax calculator If the sale is in foreign currency, for the purpose of determining gain, the cost and selling price of the property should be expressed in U. Military tax calculator S. Military tax calculator currency at the rate of exchange prevailing as of the date of the purchase and date of the sale, respectively. Military tax calculator You may want to read Publication 544. Military tax calculator However, use Publication 544 only to determine what is a sale or exchange of a capital asset, or what is treated as such. Military tax calculator Specific tax treatment that applies to U. Military tax calculator S. Military tax calculator citizens or residents generally does not apply to you. Military tax calculator The following gains are subject to the 30% (or lower treaty) rate without regard to the 183-day rule, discussed later. Military tax calculator Gains on the disposal of timber, coal, or domestic iron ore with a retained economic interest. Military tax calculator Gains on contingent payments received from the sale or exchange of patents, copyrights, and similar property after October 4, 1966. Military tax calculator Gains on certain transfers of all substantial rights to, or an undivided interest in, patents if the transfers were made before October 5, 1966. Military tax calculator Gains on the sale or exchange of original issue discount obligations. Military tax calculator Gains in (1) are not subject to the 30% (or lower treaty) rate if you choose to treat the gains as effectively connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator See Income From Real Property , later. Military tax calculator 183-day rule. Military tax calculator   If you were in the United States for 183 days or more during the tax year, your net gain from sales or exchanges of capital assets is taxed at a 30% (or lower treaty) rate. Military tax calculator For purposes of the 30% (or lower treaty) rate, net gain is the excess of your capital gains from U. Military tax calculator S. Military tax calculator sources over your capital losses from U. Military tax calculator S. Military tax calculator sources. Military tax calculator This rule applies even if any of the transactions occurred while you were not in the United States. Military tax calculator   To determine your net gain, consider the amount of your gains and losses that would be recognized and taken into account only if, and to the extent that, they would be recognized and taken into account if you were in a U. Military tax calculator S. Military tax calculator trade or business during the year and the gains and losses were effectively connected with that trade or business during the tax year. Military tax calculator   In arriving at your net gain, do not take the following into consideration. Military tax calculator The four types of gains listed earlier. Military tax calculator The deduction for a capital loss carryover. Military tax calculator Capital losses in excess of capital gains. Military tax calculator Exclusion for gain from the sale or exchange of qualified small business stock (section 1202 exclusion). Military tax calculator Losses from the sale or exchange of property held for personal use. Military tax calculator However, losses resulting from casualties or thefts may be deductible on Schedule A (Form 1040NR). Military tax calculator See Itemized Deductions in chapter 5. Military tax calculator   If you are not engaged in a trade or business in the United States and have not established a tax year for a prior period, your tax year will be the calendar year for purposes of the 183-day rule. Military tax calculator Also, you must file your tax return on a calendar-year basis. Military tax calculator   If you were in the United States for less than 183 days during the tax year, capital gains (other than gains listed earlier) are tax exempt unless they are effectively connected with a trade or business in the United States during your tax year. Military tax calculator Reporting. Military tax calculator   Report your gains and losses from the sales or exchanges of capital assets that are not effectively connected with a trade or business in the United States on page 4 of Form 1040NR. Military tax calculator Report gains and losses from sales or exchanges of capital assets (including real property) that are effectively connected with a trade or business in the United States on a separate Schedule D (Form 1040), Form 4797, or both. Military tax calculator Attach them to Form 1040NR. Military tax calculator Income From Real Property If you have income from real property located in the United States that you own or have an interest in and hold for the production of income, you can choose to treat all income from that property as income effectively connected with a trade or business in the United States. Military tax calculator The choice applies to all income from real property located in the United States and held for the production of income and to all income from any interest in such property. Military tax calculator This includes income from rents, royalties from mines, oil or gas wells, or other natural resources. Military tax calculator It also includes gains from the sale or exchange of timber, coal, or domestic iron ore with a retained economic interest. Military tax calculator You can make this choice only for real property income that is not otherwise effectively connected with your U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator If you make the choice, you can claim deductions attributable to the real property income and only your net income from real property is taxed. Military tax calculator This choice does not treat a nonresident alien, who is not otherwise engaged in a U. Military tax calculator S. Military tax calculator trade or business, as being engaged in a trade or business in the United States during the year. Military tax calculator Example. Military tax calculator You are a nonresident alien and are not engaged in a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator You own a single-family house in the United States that you rent out. Military tax calculator Your rental income for the year is $10,000. Military tax calculator This is your only U. Military tax calculator S. Military tax calculator source income. Military tax calculator As discussed earlier under The 30% Tax, the rental income is subject to a tax at a 30% (or lower treaty) rate. Military tax calculator You received a Form 1042-S showing that your tenants properly withheld this tax from the rental income. Military tax calculator You do not have to file a U. Military tax calculator S. Military tax calculator tax return (Form 1040NR) because your U. Military tax calculator S. Military tax calculator tax liability is satisfied by the withholding of tax. Military tax calculator If you make the choice discussed earlier, you can offset the $10,000 income by certain rental expenses. Military tax calculator (See Publication 527, Residential Rental Property, for information on rental expenses. Military tax calculator ) Any resulting net income is taxed at graduated rates. Military tax calculator If you make this choice, report the rental income and expenses on Schedule E (Form 1040) and attach the schedule to Form 1040NR. Military tax calculator For the first year you make the choice, also attach the statement discussed next. Military tax calculator Making the choice. Military tax calculator   Make the initial choice by attaching a statement to your return, or amended return, for the year of the choice. Military tax calculator Include the following in your statement. Military tax calculator That you are making the choice. Military tax calculator Whether the choice is under Internal Revenue Code section 871(d) (explained earlier) or a tax treaty. Military tax calculator A complete list of all your real property, or any interest in real property, located in the United States. Military tax calculator Give the legal identification of U. Military tax calculator S. Military tax calculator timber, coal, or iron ore in which you have an interest. Military tax calculator The extent of your ownership in the property. Military tax calculator The location of the property. Military tax calculator A description of any major improvements to the property. Military tax calculator The dates you owned the property. Military tax calculator Your income from the property. Military tax calculator Details of any previous choices and revocations of the real property income choice. Military tax calculator   This choice stays in effect for all later tax years unless you revoke it. Military tax calculator Revoking the choice. Military tax calculator   You can revoke the choice without IRS approval by filing Form 1040X, Amended U. Military tax calculator S. Military tax calculator Individual Income Tax Return, for the year you made the choice and for later tax years. Military tax calculator You must file Form 1040X within 3 years from the date your return was filed or 2 years from the time the tax was paid, whichever is later. Military tax calculator If this time period has expired for the year of choice, you cannot revoke the choice for that year. Military tax calculator However, you may revoke the choice for later tax years only if you have IRS approval. Military tax calculator For information on how to get IRS approval, see Regulation section 1. Military tax calculator 871-10(d)(2). Military tax calculator Transportation Tax A 4% tax rate applies to transportation income that is not effectively connected because it does not meet the two conditions listed earlier under Transportation Income . Military tax calculator If you receive transportation income subject to the 4% tax, you should figure the tax and show it on line 57 of Form 1040NR. Military tax calculator Attach a statement to your return that includes the following information (if applicable). Military tax calculator Your name, taxpayer identification number, and tax year. Military tax calculator A description of the types of services performed (whether on or off board). Military tax calculator Names of vessels or registration numbers of aircraft on which you performed the services. Military tax calculator Amount of U. Military tax calculator S. Military tax calculator source transportation income derived from each type of service for each vessel or aircraft for the calendar year. Military tax calculator Total amount of U. Military tax calculator S. Military tax calculator source transportation income derived from all types of services for the calendar year. Military tax calculator This 4% tax applies to your U. Military tax calculator S. Military tax calculator source gross transportation income. Military tax calculator This only includes transportation income that is treated as derived from sources in the United States if the transportation begins or ends in the United States. Military tax calculator For transportation income from personal services, the transportation must be between the United States and a U. Military tax calculator S. Military tax calculator possession. Military tax calculator For personal services of a nonresident alien, this only applies to income derived from, or in connection with, an aircraft. Military tax calculator Interrupted Period of Residence You are subject to tax under a special rule if you interrupt your period of U. Military tax calculator S. Military tax calculator residence with a period of nonresidence. Military tax calculator The special rule applies if you meet all of the following conditions. Military tax calculator You were a U. Military tax calculator S. Military tax calculator resident for a period that includes at least 3 consecutive calendar years. Military tax calculator You were a U. Military tax calculator S. Military tax calculator resident for at least 183 days in each of those years. Military tax calculator You ceased to be treated as a U. Military tax calculator S. Military tax calculator resident. Military tax calculator You then again became a U. Military tax calculator S. Military tax calculator resident before the end of the third calendar year after the end of the period described in (1) above. Military tax calculator Under this special rule, you are subject to tax on your U. Military tax calculator S. Military tax calculator source gross income and gains on a net basis at the graduated rates applicable to individuals (with allowable deductions) for the period you were a nonresident alien, unless you would be subject to a higher tax under the 30% tax (discussed earlier) on income not connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator For information on how to figure the special tax, see How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) under Expatriation Tax , below. Military tax calculator Example. Military tax calculator John Willow, a citizen of New Zealand, entered the United States on April 1, 2008, as a lawful permanent resident. Military tax calculator On August 1, 2010, John ceased to be a lawful permanent resident and returned to New Zealand. Military tax calculator During his period of residence, he was present in the United States for at least 183 days in each of three consecutive years (2008, 2009, and 2010). Military tax calculator He returned to the United States on October 5, 2013, as a lawful permanent resident. Military tax calculator He became a resident before the close of the third calendar year (2013) beginning after the end of his first period of residence (August 1, 2010). Military tax calculator Therefore, he is subject to tax under the special rule for the period of nonresidence (August 2, 2010, through October 4, 2013) if it is more than the tax that would normally apply to him as a nonresident alien. Military tax calculator Reporting requirements. Military tax calculator   If you are subject to this tax for any year in the period you were a nonresident alien, you must file Form 1040NR for that year. Military tax calculator The return is due by the due date (including extensions) for filing your U. Military tax calculator S. Military tax calculator income tax return for the year that you again become a U. Military tax calculator S. Military tax calculator resident. Military tax calculator If you already filed returns for that period, you must file amended returns. Military tax calculator You must attach a statement to your return that identifies the source of all of your U. Military tax calculator S. Military tax calculator and foreign gross income and the items of income subject to this special rule. Military tax calculator Expatriation Tax The expatriation tax provisions apply to U. Military tax calculator S. Military tax calculator citizens who have renounced their citizenship and long-term residents who have ended their residency. Military tax calculator The rules that apply are based on the dates of expatriation, which are described in the following sections. Military tax calculator Expatriation Before June 4, 2004. Military tax calculator Expatriation After June 3, 2004, and Before June 17, 2008. Military tax calculator Expatriation After June 16, 2008. Military tax calculator Long-term resident defined. Military tax calculator   You are a long-term resident if you were a lawful permanent resident of the United States in at least 8 of the last 15 tax years ending with the year your residency ends. Military tax calculator In determining if you meet the 8-year requirement, do not count any year that you are treated as a resident of a foreign country under a tax treaty and do not waive treaty benefits. Military tax calculator Expatriation Before June 4, 2004 If you expatriated before June 4, 2004, the expatriation rules apply if one of the principal purposes of the action is the avoidance of U. Military tax calculator S. Military tax calculator taxes. Military tax calculator Unless you received a ruling from the IRS that you did not expatriate to avoid U. Military tax calculator S. Military tax calculator taxes, you are presumed to have tax avoidance as a principal purpose if: Your average annual net income tax for the last 5 tax years ending before the date of your action to relinquish your citizenship or terminate your residency was more than $100,000, or Your net worth on the date of your action was $500,000 or more. Military tax calculator The amounts above are adjusted for inflation if your expatriation action is after 1997 (see Table 4-1). Military tax calculator Table 4-1. Military tax calculator Inflation-Adjusted Amounts for Expatriation Actions Before June 4, 2004 IF you expatriated during . Military tax calculator . Military tax calculator . Military tax calculator   THEN the rules outlined on this page apply if . Military tax calculator . Military tax calculator . Military tax calculator     Your 5-year average annual net income tax was more than . Military tax calculator . Military tax calculator . Military tax calculator OR Your net worth equaled or exceeded . Military tax calculator . Military tax calculator . Military tax calculator 1999   110,000   552,000 2000   112,000   562,000 2001   116,000   580,000 2002   120,000   599,000 2003   122,000   608,000 2004 (before June 4)*   124,000   622,000 *If you expatriated after June 3, 2004, see Expatriation After June 3, 2004, and Before June 17, 2008 or Expatriation After June 16, 2008. Military tax calculator Reporting requirements. Military tax calculator   If you lost your U. Military tax calculator S. Military tax calculator citizenship, you should have filed Form 8854 with a consular office or a federal court at the time of loss of citizenship. Military tax calculator If you ended your long-term residency, you should have filed Form 8854 with the Internal Revenue Service when you filed your dual-status tax return for the year your residency ended. Military tax calculator   Your U. Military tax calculator S. Military tax calculator residency is considered to have ended when you ceased to be a lawful permanent resident or you began to be treated as a resident of another country under a tax treaty and do not waive treaty benefits. Military tax calculator Penalties. Military tax calculator   If you failed to file Form 8854, you may have to pay a penalty equal to the greater of 5% of the expatriation tax or $1,000. Military tax calculator The penalty will be assessed for each year of the 10-year period beginning on the date of expatriation during which your failure to file continues. Military tax calculator The penalty will not be imposed if you can show that the failure is due to reasonable cause and not willful neglect. Military tax calculator Expatriation tax. Military tax calculator   The expatriation tax applies to the 10-year period following the date of expatriation or termination of residency. Military tax calculator It is figured in the same way as for those expatriating after June 3, 2004, and before June 17, 2008. Military tax calculator See How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) in the next section. Military tax calculator Expatriation After June 3, 2004, and Before June 17, 2008 If you expatriated after June 3, 2004, and before June 17, 2008, the expatriation rules apply to you if any of the following statements apply. Military tax calculator Your average annual net income tax for the 5 tax years ending before the date of expatriation or termination of residency is more than: $124,000 if you expatriated or terminated residency in 2004. Military tax calculator $127,000 if you expatriated or terminated residency in 2005. Military tax calculator $131,000 if you expatriated or terminated residency in 2006. Military tax calculator $136,000 if you expatriated or terminated residency in 2007. Military tax calculator $139,000 if you expatriated or terminated residency in 2008. Military tax calculator Your net worth is $2 million or more on the date of your expatriation or termination of residency. Military tax calculator You fail to certify on Form 8854 that you have complied with all U. Military tax calculator S. Military tax calculator federal tax obligations for the 5 tax years preceding the date of your expatriation or termination of residency. Military tax calculator Exception for dual-citizens and certain minors. Military tax calculator   Certain dual-citizens and certain minors (defined next) are not subject to the expatriation tax even if they meet (1) or (2) earlier. Military tax calculator However, they still must provide the certification required in (3). Military tax calculator Certain dual-citizens. Military tax calculator   You may qualify for the exception described above if all of the following apply. Military tax calculator You became at birth a U. Military tax calculator S. Military tax calculator citizen and a citizen of another country and you continue to be a citizen of that other country. Military tax calculator You were never a resident alien of the United States (as defined in chapter 1). Military tax calculator You never held a U. Military tax calculator S. Military tax calculator passport. Military tax calculator You were present in the United States for no more than 30 days during any calendar year that is 1 of the 10 calendar years preceding your loss of U. Military tax calculator S. Military tax calculator citizenship. Military tax calculator Certain minors. Military tax calculator   You may qualify for the exception described above if you meet all of the following requirements. Military tax calculator You became a U. Military tax calculator S. Military tax calculator citizen at birth. Military tax calculator Neither of your parents was a U. Military tax calculator S. Military tax calculator citizen at the time of your birth. Military tax calculator You expatriated before you were 18½. Military tax calculator You were present in the United States for not more than 30 days during any calendar year that is 1 of the 10 calendar years preceding your expatriation. Military tax calculator Tax consequences of presence in the United States. Military tax calculator   The following rules apply if you do not meet the exception above for dual-citizens and certain minors and the expatriation rules would otherwise apply to you. Military tax calculator   The expatriation tax does not apply to any tax year during the 10-year period if you are physically present in the United States for more than 30 days during the calendar year ending in that year. Military tax calculator Instead, you are treated as a U. Military tax calculator S. Military tax calculator citizen or resident and taxed on your worldwide income for that tax year. Military tax calculator You must file Form 1040, 1040A, or 1040EZ and figure your tax as prescribed in the instructions for those forms. Military tax calculator   When counting the number of days of presence during a calendar year, count any day you were physically present in the United States at any time during the day. Military tax calculator However, do not count any days (up to a limit of 30 days) on which you performed personal services in the United States for an employer who is not related to you if either of the following apply. Military tax calculator You have ties with other countries. Military tax calculator You have ties with other countries if: You became (within a reasonable period after your expatriation or termination of residency) a citizen or resident of the country in which you, your spouse, or either of your parents were born, and You became fully liable for income tax in that country. Military tax calculator You were physically present in the United States for 30 days or less during each year in the 10-year period ending on the date of expatriation or termination of residency. Military tax calculator Do not count any day you were an exempt individual or were unable to leave the United States because of a medical condition that arose while you were in the United States. Military tax calculator See Exempt individual and Medical condition in chapter 1 under Substantial Presence Test, but disregard the information about Form 8843. Military tax calculator Related employer. Military tax calculator   If your employer in the United States is any of the following, then your employer is related to you. Military tax calculator You must count any days you performed services in the United States for that employer as days of presence in the United States. Military tax calculator Members of your family. Military tax calculator This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc. Military tax calculator ), and lineal descendants (children, grandchildren, etc. Military tax calculator ). Military tax calculator A partnership in which you directly or indirectly own more than 50% of the capital interest or the profits interest. Military tax calculator A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock. Military tax calculator (See Publication 550, chapter 4, Constructive ownership of stock, for how to determine whether you directly or indirectly own outstanding stock. Military tax calculator ) A tax-exempt charitable or educational organization that is directly or indirectly controlled, in any manner or by any method, by you or by a member of your family, whether or not this control is legally enforceable. Military tax calculator Date of tax expatriation. Military tax calculator   For purposes of U. Military tax calculator S. Military tax calculator tax rules, the date of your expatriation or termination of residency is the later of the dates on which you perform the following actions. Military tax calculator You notify either the Department of State or the Department of Homeland Security (whichever is appropriate) of your expatriating act or termination of residency. Military tax calculator You file Form 8854 in accordance with the form instructions. Military tax calculator Annual return. Military tax calculator   If the expatriation tax applies to you, you must file Form 8854 each year during the 10-year period following the date of expatriation. Military tax calculator You must file this form even if you owe no U. Military tax calculator S. Military tax calculator tax. Military tax calculator Penalty. Military tax calculator   If you fail to file Form 8854 for any tax year, fail to include all information required to be shown on the form, or include incorrect information, you may have to pay a penalty of $10,000. Military tax calculator You will not have to pay a penalty if you show that the failure is due to reasonable cause and not to willful neglect. Military tax calculator How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) If the expatriation tax applies to you, you are generally subject to tax on your U. Military tax calculator S. Military tax calculator source gross income and gains on a net basis at the graduated rates applicable to individuals (with allowable deductions) unless you would be subject to a higher tax under the 30% tax (discussed earlier) on income not connected with a U. Military tax calculator S. Military tax calculator trade or business. Military tax calculator For this purpose, U. Military tax calculator S. Military tax calculator source gross income (defined in chapter 2) includes gains from the sale or exchange of: Property (other than stock or debt obligations) located in the United States, Stock issued by a U. Military tax calculator S. Military tax calculator domestic corporation, and Debt obligations of U. Military tax calculator S. Military tax calculator persons or of the United States, a state or political subdivision thereof, or the District of Columbia. Military tax calculator U. Military tax calculator S. Military tax calculator source income also includes any income or gain derived from stock in certain controlled foreign corporations if you owned, or were considered to own, at any time during the 2-year period ending on the date of expatriation, more than 50% of: The total combined voting power of all classes of that corporation's stock, or The total value of the stock. Military tax calculator The income or gain is considered U. Military tax calculator S. Military tax calculator source income only to the extent of your share of earnings and profits earned or accumulated before the date of expatriation and during the periods you met the ownership requirements discussed above. Military tax calculator Any exchange of property is treated as a sale of the property at its fair market value on the date of the exchange and any gain is treated as U. Military tax calculator S. Military tax calculator source gross income in the tax year of the exchange unless you enter into a gain recognition agreement under Notice 97-19. Military tax calculator Other information. Military tax calculator   For more information on the expatriation tax provisions, including exceptions to the tax and special U. Military tax calculator S. Military tax calculator source rules, see section 877 of the Internal Revenue Code. Military tax calculator Expatriation Tax Return If you expatriated or terminated your U. Military tax calculator S. Military tax calculator residency, or you are subject to the expatriation tax, you must file Form 8854, Initial and Annual Expatriation Statement. Military tax calculator Attach it to Form 1040NR if you are required to file that form. Military tax calculator If you are present in the United States following your expatriation and are subject to tax as a U. Military tax calculator S. Military tax calculator citizen or resident, file Form 8854 with Form 1040. Military tax calculator Expatriation After June 16, 2008 If you expatriated after June 16, 2008, the expatriation rules apply to you if you meet any of the following conditions. Military tax calculator Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than: $139,000 if you expatriated or terminated residency in 2008. Military tax calculator $145,000 if you expatriated or terminated residency in 2009 or 2010. Military tax calculator $147,000 if you expatriated or terminated residency in 2011. Military tax calculator $151,000 if you expatriated or terminated residency in 2012. Military tax calculator $155,000 if you expatriated or terminated residency in 2013. Military tax calculator Your net worth is $2 million or more on the date of your expatriation or termination of residency. Military tax calculator You fail to certify on Form 8854 that you have complied with all U. Military tax calculator S. Military tax calculator federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency. Military tax calculator Exception for dual-citizens and certain minors. Military tax calculator   Certain dual-citizens and certain minors (defined next) are not subject to the expatriation tax even if they meet (1) or (2) above. Military tax calculator However, they still must provide the certification required in (3) above. Military tax calculator Certain dual-citizens. Military tax calculator   You may qualify for the exception described above if both of the following apply. Military tax calculator You became at birth a U. Military tax calculator S. Military tax calculator citizen and a citizen of another country and you continue to be a citizen of, and are taxed as a resident of, that other country. Military tax calculator You have been a resident of the United States for not more than 10 years during the 15-year tax period ending with the tax year during which the expatriation occurs. Military tax calculator For the purpose of determining U. Military tax calculator S. Military tax calculator residency, use the substantial presence test described in chapter 1. Military tax calculator Certain minors. Military tax calculator   You may qualify for the exception described earlier if you meet both of the following requirements. Military tax calculator You expatriated before you were 18½. Military tax calculator You have been a resident of the United States for not more than 10 tax years before the expatriation occurs. Military tax calculator For the purpose of determining U. Military tax calculator S. Military tax calculator residency, use the substantial presence test described in chapter 1. Military tax calculator Expatriation date. Military tax calculator   Your expatriation date is the date you relinquish U. Military tax calculator S. Military tax calculator citizenship (in the case of a former citizen) or terminate your long-term residency (in the case of a former U. Military tax calculator S. Military tax calculator resident). Military tax calculator Former U. Military tax calculator S. Military tax calculator citizen. Military tax calculator   You are considered to have relinquished your U. Military tax calculator S. Military tax calculator citizenship on the earliest of the following dates. Military tax calculator The date you renounced U. Military tax calculator S. Military tax calculator citizenship before a diplomatic or consular officer of the United States (provided that the voluntary renouncement was later confirmed by the issuance of a certificate of loss of nationality). Military tax calculator The date you furnished to the State Department a signed statement of voluntary relinquishment of U. Military tax calculator S. Military tax calculator nationality confirming the performance of an expatriating act (provided that the voluntary relinquishment was later confirmed by the issuance of a certificate of loss of nationality). Military tax calculator The date the State Department issued a certificate of loss of nationality. Military tax calculator The date that a U. Military tax calculator S. Military tax calculator court canceled your certificate of naturalization. Military tax calculator Former long-term resident. Military tax calculator   You are considered to have terminated your long-term residency on the earliest of the following dates. Military tax calculator The date you voluntarily relinquished your lawful permanent resident status by filing Department of Homeland Security Form I-407 with a U. Military tax calculator S. Military tax calculator consular or immigration officer, and the Department of Homeland Security determined that you have, in fact, abandoned your lawful permanent resident status. Military tax calculator The date you became subject to a final administrative order for your removal from the United States under the Immigration and Nationality Act and you actually left the United States as a result of that order. Military tax calculator If you were a dual resident of the United States and a country with which the United States has an income tax treaty, the date you began to be treated as a resident of that country and you determined that, for purposes of the treaty, you are a resident of the treaty country and notify the IRS of that treatment on Forms 8833 and 8854. Military tax calculator See Effect of Tax Treaties in chapter 1 for more information about dual residents. Military tax calculator How To Figure the Expatriation Tax (If You Expatriate After June 16, 2008) In the year you expatriate, you are subject to income tax on the net unrealized gain (or loss) in your property as if the property had been sold for its fair market value on the day before your expatriation date (“mark-to-market tax”). Military tax calculator This applies to most types of property interests you held on the date of relinquishment of citizenship or termination of residency. Military tax calculator But see Exceptions , later. Military tax calculator Gains arising from deemed sales must be taken into account for the tax year of the deemed sale without regard to other U. Military tax calculator S. Military tax calculator internal revenue laws. Military tax calculator Losses from deemed sales must be taken into account to the extent otherwise provided under U. Military tax calculator S. Military tax calculator internal revenue laws. Military tax calculator However, Internal Revenue Code section 1091 (relating to the disallowance of losses on wash sales of stock and securities) does not apply. Military tax calculator The net gain that you otherwise must include in your income is reduced (but not below zero) by: $600,000 if you expatriated or terminated residency before January 1, 2009. Military tax calculator $626,000 if you expatriated or terminated residency in 2009. Military tax calculator $627,000 if you expatriated or terminated residency in 2010. Military tax calculator $636,000 if you expatriated or terminated residency in 2011. Military tax calculator $651,000 if you expatriated or terminated residency in 2012. Military tax calculator $668,000 if you expatriated or terminated residency in 2013. Military tax calculator Exceptions. Military tax calculator   The mark-to-market tax does not apply to the following. Military tax calculator Eligible deferred compensation items. Military tax calculator Ineligible deferred compensation items. Military tax calculator Interests in nongrantor trusts. Military tax calculator Specified tax deferred accounts. Military tax calculator Instead, items (1) and (3) may be subject to withholding at source. Military tax calculator In the case of item (2), you are treated as receiving the present value of your accrued benefit as of the day before the expatriation date. Military tax calculator In the case of item (4), you are treated as receiving a distribution of your entire interest in the account on the day before your expatriation date. Military tax calculator See paragraphs (d), (e), and (f) of section 877A for more information. Military tax calculator Expatriation Tax Return If you expatriated or terminated your U. Military tax calculator S. Military tax calculator residency, or you are subject to the expatriation rules (as discussed earlier in the first paragraph under Expatriation After June 16, 2008), you must file Form 8854. Military tax calculator Attach it to Form 1040 or Form 1040NR if you are required to file either of those forms. Military tax calculator Deferral of payment of mark-to-market tax. Military tax calculator   You can make an irrevocable election to defer payment of the mark-to-market tax imposed on the deemed sale of property. Military tax calculator If you make this election, the following rules apply. Military tax calculator You can make the election on a property-by-property basis. Military tax calculator The deferred tax attributable to a particular property is due on the return for the tax year in which you dispose of the property. Military tax calculator Interest is charged for the period the tax is deferred. Military tax calculator The due date for the payment of the deferred tax cannot be extended beyond the earlier of the following dates. Military tax calculator The due date of the return required for the year of death. Military tax calculator The time that the security provided for the property fails to be adequate. Military tax calculator See item (6) below. Military tax calculator You make the election on Form 8854. Military tax calculator You must provide adequate security (such as a bond). Military tax calculator You must make an irrevocable waiver of any right under any treaty of the United States which would preclude assessment or collection of the mark-to-market tax. Military tax calculator   For more information about the deferral of payment, see the Instructions for Form 8854. Military tax calculator Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Contact My Local Office in Maryland

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Annapolis 190 Admiral Cochrane Dr.
Annapolis, MD 21401

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(301) 695-7615
Baltimore 31 Hopkins Plaza
Baltimore, MD 21201

Monday-Friday - 8:30 a.m.- 4:30 p.m.


Services Provided

(410) 962-7969 
Frederick  201 Thomas- Johnson Dr.
Frederick, MD 21702 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.) 

 

Services Provided

(301) 695-7615 
Hagerstown  1260 Maryland Ave.
Hagerstown, MD 21740 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.) 

 

Services Provided

(301) 797-6624 
Landover  8401 Corporate Dr.
Landover, MD 20785 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:30 p.m. - 1:30 p.m.)


Services Provided

(240) 613-7952 
LaVale  14701 National Highway 
LaVale, MD 21502 

Monday-Friday - 8:30 a.m.- 2:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)
 

Services Provided

(301) 729-6397 
Salisbury  212 West Main St.
Salisbury, MD 21801 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 


Services Provided

(410) 677-6718
Wheaton  11510 Georgia Ave.
Wheaton, MD 20902 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 

 

Services Provided

(240) 613-8976 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (443) 853-6000 in Baltimore or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
Fallon Federal Building
31 Hopkins Plaza, Room 1432
Baltimore, MD 21201

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Military Tax Calculator

Military tax calculator It's easy, accurate and fast. So why would you file your taxes any other way? Military tax calculator Old fashioned paper tax forms have been around for decades, but it might be time for them to go the way of the dodo. Who wants to wait for weeks to get their check in the mail when you can just efile your tax return electronically with the IRS and start enjoying your refund in as little as 7 days. Military tax calculator If you consider the money the IRS holds on to while you wait for your refund as an interest free loan, then you’ll realize that you are losing money. No one other than the IRS can get an interest free loan and that doesn’t seem fair, does it? Enter the internet age. Commercial companies have been moving online for years now - when was the last time you've mailed a check or received a paper statement from your bank? Now, even the government sites are starting to get with the program and are offering quick and easy efile to everyone. Here are a few reasons why I switched to efile; maybe it’s time you do to!