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

State Tax Filing Software

1040ez Free Online File2011 Tax Tables1040x 20081040 Estimated Tax FormTax Form 10402011 Federal Income Tax 1040ez1040nr-ez2012 Form 1040 Schedule A2010 Taxes Cheap 1099 G Form W 21040nr SoftwareTaxact20112009 Tax TablesFree Efile For State And FederalE-file 2012 Tax ReturnState Tax Return OnlineFree Efile Tax ReturnI Need To File 2011 TaxesFiling Taxes OnlineE File State ReturnFile 2007 Tax Return OnlineFiling Back State TaxesCan You File 2011 Taxes NowIncome Tax ExtensionFile Tax Extension OnlineSchool Tax FormsW2 Book For 1040ez2011 1040ez FormFree Tax Filing For Low IncomeFree File 1040ez Form1040ezformsDownload 1040ezCan You File 1040ez OnlineFiling 1040 Ez Online2013 Federal Tax Form 1040x2013 1040ez FormFree Turbotax 2012H And R Block FreeTax Act Online 2009Irs Extension Form 2011Free Military Tax Filing

State Tax Filing Software

State tax filing software Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. State tax filing software Tax-deferred plans. State tax filing software Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. State tax filing software Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. State tax filing software S. State tax filing software Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. State tax filing software That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. State tax filing software Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. State tax filing software Saving clause. State tax filing software   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. State tax filing software S. State tax filing software citizens) or of the United States to tax its residents or citizens (including U. State tax filing software S. State tax filing software citizens who are residents of the foreign country). State tax filing software This provision is known as the “saving clause. State tax filing software ”   For example, an individual who is a U. State tax filing software S. State tax filing software citizen and a resident of Canada may have dividend income from a U. State tax filing software S. State tax filing software corporation. State tax filing software The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. State tax filing software Even though a resident of Canada, the individual is a U. State tax filing software S. State tax filing software citizen and the saving clause overrides the treaty article that limits the U. State tax filing software S. State tax filing software tax to 15%. State tax filing software    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. State tax filing software Treaty-based position. State tax filing software   If you take the position that any U. State tax filing software S. State tax filing software tax is overruled or otherwise reduced by a U. State tax filing software S. State tax filing software treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. State tax filing software Personal Services A U. State tax filing software S. State tax filing software citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. State tax filing software Income from employment (Article XV). State tax filing software   Income U. State tax filing software S. State tax filing software residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. State tax filing software If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. State tax filing software    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. State tax filing software Example. State tax filing software You are a U. State tax filing software S. State tax filing software resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. State tax filing software During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. State tax filing software Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. State tax filing software Pay received by a U. State tax filing software S. State tax filing software resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. State tax filing software S. State tax filing software resident is exempt from Canadian tax. State tax filing software Income from self-employment (Article VII). State tax filing software   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. State tax filing software This income is treated as business profits, and deductions similar to those allowed under U. State tax filing software S. State tax filing software law are allowable. State tax filing software   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. State tax filing software The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. State tax filing software   You may be considered to have a permanent establishment if you meet certain conditions. State tax filing software For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). State tax filing software Public entertainers (Article XVI). State tax filing software   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. State tax filing software However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. State tax filing software Compensation paid by the U. State tax filing software S. State tax filing software Government (Article XIX). State tax filing software   Wages, salaries, and similar income (other than pensions) paid to a U. State tax filing software S. State tax filing software citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. State tax filing software   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. State tax filing software Students and apprentices (Article XX). State tax filing software   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. State tax filing software The recipient must be or must have been a U. State tax filing software S. State tax filing software resident immediately before visiting Canada. State tax filing software   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. State tax filing software Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. State tax filing software S. State tax filing software residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). State tax filing software Canadian pensions and annuities paid to U. State tax filing software S. State tax filing software residents may be taxed by the United States, but the amount of any pension included in income for U. State tax filing software S. State tax filing software tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. State tax filing software Pensions. State tax filing software   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. State tax filing software It includes pensions paid by private employers and the government for services rendered. State tax filing software   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. State tax filing software   Pensions do not include social security benefits. State tax filing software Roth IRAs. State tax filing software   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. State tax filing software S. State tax filing software tax if paid to a U. State tax filing software S. State tax filing software resident. State tax filing software In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. State tax filing software However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. State tax filing software Tax-deferred plans. State tax filing software   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. State tax filing software S. State tax filing software tax, even if it is not distributed. State tax filing software However, a U. State tax filing software S. State tax filing software citizen or resident can elect to defer U. State tax filing software S. State tax filing software tax on income from the plan until the income is distributed. State tax filing software Form 8891 is used to make the election. State tax filing software Annuities. State tax filing software    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). State tax filing software Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. State tax filing software Special rules. State tax filing software    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. State tax filing software Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. State tax filing software Social security benefits. State tax filing software   U. State tax filing software S. State tax filing software social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. State tax filing software Alimony. State tax filing software   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. State tax filing software S. State tax filing software residents are exempt from Canadian tax. State tax filing software For purposes of U. State tax filing software S. State tax filing software tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. State tax filing software Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. State tax filing software Dividends (Article X). State tax filing software   For Canadian source dividends received by U. State tax filing software S. State tax filing software residents, the Canadian income tax generally may not be more than 15%. State tax filing software   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. State tax filing software However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. State tax filing software   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. State tax filing software Interest (Article XI). State tax filing software   Generally, Canadian source interest received by U. State tax filing software S. State tax filing software residents is exempt from Canadian income tax. State tax filing software   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. State tax filing software Gains from the sale of property (Article XIII). State tax filing software   Generally, gains from the sale of personal property by a U. State tax filing software S. State tax filing software resident having no permanent establishment in Canada are exempt from Canadian income tax. State tax filing software However, the exemption from Canadian tax does not apply to gains realized by U. State tax filing software S. State tax filing software residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. State tax filing software   If the property subject to Canadian tax is a capital asset and was owned by the U. State tax filing software S. State tax filing software resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. State tax filing software Royalties (Article XII). State tax filing software   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. State tax filing software   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. State tax filing software   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. State tax filing software Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. State tax filing software Gambling losses. State tax filing software   Canadian residents may deduct gambling losses in the U. State tax filing software S. State tax filing software against gambling winnings in the U. State tax filing software S. State tax filing software in the same manner as a U. State tax filing software S. State tax filing software resident. State tax filing software Charitable Contributions United States income tax return. State tax filing software   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. State tax filing software Besides being subject to the overall limits applicable to all your charitable contributions under U. State tax filing software S. State tax filing software tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. State tax filing software S. State tax filing software percentage limits on charitable contributions, applied to your Canadian source income. State tax filing software If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. State tax filing software Example. State tax filing software You are a U. State tax filing software S. State tax filing software citizen living in Canada. State tax filing software You have both U. State tax filing software S. State tax filing software and Canadian source income. State tax filing software During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. State tax filing software S. State tax filing software tax law if they were U. State tax filing software S. State tax filing software organizations. State tax filing software To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. State tax filing software S. State tax filing software income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. State tax filing software S. State tax filing software income tax law. State tax filing software Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. State tax filing software S. State tax filing software income tax law. State tax filing software The appropriate percentage limit for U. State tax filing software S. State tax filing software tax purposes is applied to your total adjusted gross income from all sources. State tax filing software Qualified charities. State tax filing software   These Canadian organizations must meet the qualifications that a U. State tax filing software S. State tax filing software charitable organization must meet under U. State tax filing software S. State tax filing software tax law. State tax filing software Usually an organization will notify you if it qualifies. State tax filing software For further information on charitable contributions and the U. State tax filing software S. State tax filing software percentage limits, see Publication 526, Charitable Contributions. State tax filing software Canadian income tax return. State tax filing software   Under certain conditions, contributions to qualified U. State tax filing software S. State tax filing software charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. State tax filing software Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. State tax filing software In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. State tax filing software For detailed discussions of the U. State tax filing software S. State tax filing software income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. State tax filing software See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. State tax filing software S. State tax filing software citizens residing in Canada. State tax filing software Competent Authority Assistance Under Article XXVI, a U. State tax filing software S. State tax filing software citizen or resident may request assistance from the U. State tax filing software S. State tax filing software competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. State tax filing software The U. State tax filing software S. State tax filing software competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. State tax filing software If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. State tax filing software It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. State tax filing software This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. State tax filing software For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. State tax filing software irs. State tax filing software gov/irb/2006-49_IRB/ar13. State tax filing software html. State tax filing software The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. State tax filing software , NW Routing: MA3-322A Washington, D. State tax filing software C. State tax filing software 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. State tax filing software S. State tax filing software taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. State tax filing software This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. State tax filing software For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. State tax filing software Attach your protective claim to your request for competent authority assistance. State tax filing software Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. State tax filing software How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS and the Canada Revenue Agency in several ways. State tax filing software Text of Treaty You can get the text of the U. State tax filing software S. State tax filing software —Canada income tax treaty from: Superintendent of Documents U. State tax filing software S. State tax filing software Government Printing Office P. State tax filing software O. State tax filing software Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. State tax filing software gov. State tax filing software U. State tax filing software S. State tax filing software Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. State tax filing software To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. State tax filing software S. State tax filing software Embassy or consulate. State tax filing software Mail. State tax filing software For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. State tax filing software You can call the IRS for help at (267) 941-1000 (not a toll-free call). State tax filing software Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. State tax filing software The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. State tax filing software S. State tax filing software ) or on the Internet at www. State tax filing software cra-arc. State tax filing software gc. State tax filing software ca. State tax filing software Prev  Up  Next   Home   More Online Publications
Español

Federal Mediation and Conciliation Service

The Federal Mediation and Conciliation Service is an independent agency that provides mediation and other conflict resolution services for managing and enhancing labor-management relationships.

Contact the Agency or Department

Website: Federal Mediation and Conciliation Service

Address: 2100 K St NW
Washington, DC 20427

Phone Number: (202) 606-8100

The State Tax Filing Software

State tax filing software 5. State tax filing software   Illustrated Examples Table of Contents Illustrated Example of Form 4563Line 1. State tax filing software Line 2. State tax filing software Lines 3a and 3b. State tax filing software Lines 4a and 4b. State tax filing software Line 5. State tax filing software Line 6. State tax filing software Line 7. State tax filing software Line 9. State tax filing software Line 15. State tax filing software Illustrated Example of Form 5074Part I. State tax filing software Part II. State tax filing software Part III. State tax filing software Illustrated Example of Form 8689Part I. State tax filing software Part II. State tax filing software Part III. State tax filing software Part IV. State tax filing software Use the following examples to help you complete the correct attachment to your Form 1040. State tax filing software The completed form for each example is shown on the pages that follow. State tax filing software Illustrated Example of Form 4563 John Black is a U. State tax filing software S. State tax filing software citizen, single, and under 65. State tax filing software He was a bona fide resident of American Samoa during all of 2013. State tax filing software John must file Form 1040 because his gross income from sources outside the possessions ($10,000 of dividends from U. State tax filing software S. State tax filing software corporations) is more than his adjusted filing requirement for single filers under 65. State tax filing software (See Filing Requirement if Possession Income Is Excluded in chapter 4. State tax filing software ) Because he must file Form 1040 (not illustrated), he fills out Form 4563 to determine the amount of income from American Samoa he can exclude. State tax filing software See Bona Fide Resident of American Samoa in chapter 3. State tax filing software Completing Form 4563. State tax filing software   John enters his name and social security number at the top of the form. State tax filing software Line 1. State tax filing software   On Form 4563 (see later), John enters the date his bona fide residence began in American Samoa, June 2, 2012. State tax filing software Because he is still a bona fide resident, he enters “not ended” in the second blank space. State tax filing software Line 2. State tax filing software   He checks the box labeled “Rented house or apartment” to describe his type of living quarters in American Samoa. State tax filing software Lines 3a and 3b. State tax filing software   He checks “No” on line 3a because no family members lived with him. State tax filing software He leaves line 3b blank. State tax filing software Lines 4a and 4b. State tax filing software   He checks “No” on line 4a because he did not maintain a home outside American Samoa. State tax filing software He leaves line 4b blank. State tax filing software Line 5. State tax filing software   He enters the name and address of his employer, Samoa Products Co. State tax filing software It is a private American Samoa corporation. State tax filing software Line 6. State tax filing software   He enters the dates of his 2-week vacation to New Zealand from November 11 to November 25. State tax filing software That was his only trip outside American Samoa during the year. State tax filing software Line 7. State tax filing software   He enters the $24,000 in wages he received from Samoa Products Co. State tax filing software Line 9. State tax filing software   He received $220 in dividends from an American Samoa corporation, which he enters here. State tax filing software He also received $10,000 of dividends from a U. State tax filing software S. State tax filing software corporation, but he will enter that amount only on his Form 1040 because the U. State tax filing software S. State tax filing software dividends do not qualify for the possession exclusion. State tax filing software Line 15. State tax filing software   John totals the amounts on lines 7 and 9 to get the amount he can exclude from his gross income in 2013. State tax filing software He will not enter his excluded income on Form 1040. State tax filing software However, he will attach his completed Form 4563 to his Form 1040. State tax filing software Illustrated Example of Form 5074 Tracy Grey is a U. State tax filing software S. State tax filing software citizen who is a self-employed fisheries consultant with a tax home in New York. State tax filing software Her only income for 2013 was net self-employment income of $80,000. State tax filing software Of the $80,000, $20,000 was from consulting work in Guam and the rest was earned in the United States. State tax filing software Thinking she would owe tax to Guam on the $20,000, Tracy made estimated tax payments of $1,409 to Guam. State tax filing software She was not a bona fide resident of Guam during 2013. State tax filing software Tracy completes Form 1040 (not illustrated), reporting her worldwide income. State tax filing software Because the adjusted gross income on her Form 1040 was $50,000 or more and at least $5,000 of her gross income is from Guam, Tracy must file Form 5074 with her Form 1040. State tax filing software All amounts reported on Form 5074 are also reported on her Form 1040. State tax filing software See U. State tax filing software S. State tax filing software Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) in chapter 3. State tax filing software Completing Form 5074. State tax filing software   Tracy enters her name and social security number at the top of the form. State tax filing software Part I. State tax filing software   On Form 5074 (see later), Tracy enters her self-employment income from Guam ($20,000) on line 6. State tax filing software She has no other income from Guam, so the total on line 16 is $20,000. State tax filing software Part II. State tax filing software   Tracy's only adjustment in Part II is the deductible part of the self-employment tax on her net income earned in Guam. State tax filing software She enters $1,413 on line 21 and line 28. State tax filing software Her adjusted gross income on line 29 is $18,587. State tax filing software Part III. State tax filing software   Tracy made estimated tax payments of $1,409. State tax filing software She enters this amount on line 30, and again on line 34 as the total payments. State tax filing software Illustrated Example of Form 8689 Juan and Carla Moreno live and work in the United States. State tax filing software In 2013, they received $14,400 in income from the rental of a condominium they own in the U. State tax filing software S. State tax filing software Virgin Islands (USVI). State tax filing software The rental income was deposited in a bank in the USVI and they received $500 of interest on this income. State tax filing software They were not bona fide residents of the USVI during the entire tax year. State tax filing software The Morenos complete Form 1040 (not illustrated), reporting their income from all sources, including their interest income and the income and expenses from their USVI rental property (reported on Schedule E (Form 1040)). State tax filing software The Morenos take the standard deduction for married filing jointly, both are under 65, and they have no dependents. State tax filing software The Morenos also complete Form 8689 to determine how much of their U. State tax filing software S. State tax filing software tax shown on Form 1040, line 61 (with certain adjustments), must be paid to the U. State tax filing software S. State tax filing software Virgin Islands. State tax filing software See U. State tax filing software S. State tax filing software Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) in chapter 3. State tax filing software The Morenos file their Form 1040, attaching Form 8689 and all other schedules, with the Internal Revenue Service. State tax filing software At the same time, they send a copy of their Form 1040 with all attachments, including Form 8689, to the Virgin Islands Bureau of Internal Revenue. State tax filing software The Virgin Islands Bureau of Internal Revenue will process this copy. State tax filing software Completing Form 8689. State tax filing software   Juan and Carla enter their names and Juan's social security number at the top of the form. State tax filing software Part I. State tax filing software   The Morenos enter their income from the USVI in Part I (see later). State tax filing software The interest income is entered on line 2 and the net rental income of $6,200 ($14,400 of rental income minus $8,200 of rental expenses) is entered on line 11. State tax filing software The Morenos' total USVI income of $6,700 is entered on line 16. State tax filing software Part II. State tax filing software   The Morenos have no adjustments to their USVI income, so they enter zero (-0-) on line 28, and $6,700 on line 29. State tax filing software Their USVI adjusted gross income (AGI) is $6,700. State tax filing software Part III. State tax filing software   On line 30, the Morenos enter the amount from Form 1040, line 61 ($4,539). State tax filing software Their Form 1040 does not show any entries required on line 31, so they leave that line blank and enter $4,539 on line 32. State tax filing software   The Morenos enter their worldwide AGI, $54,901 (Form 1040, line 38), on line 33. State tax filing software Next, they find what percentage of their AGI is from USVI sources ($6,700 ÷ $54,901 = 0. State tax filing software 122) and enter that as a decimal on line 34. State tax filing software They then apply that percentage to the U. State tax filing software S. State tax filing software tax entered on line 32 to find the amount of U. State tax filing software S. State tax filing software tax allocated to USVI income ($4,539 x 0. State tax filing software 122 = $554), and enter that amount on line 35. State tax filing software Part IV. State tax filing software   Part IV is used to show payments of income tax to the USVI only. State tax filing software The Morenos had no tax withheld by the U. State tax filing software S. State tax filing software Virgin Islands, but made estimated tax payments to the USVI of $400, which they entered on lines 37 and 39. State tax filing software They include this amount ($400) in the total payments on Form 1040, line 72. State tax filing software On the dotted line next to the entry space for line 72, they enter “Form 8689” and show the amount. State tax filing software The Morenos do not complete Form 1116 because they receive credit on Form 1040, line 72, for the tax paid to the USVI. State tax filing software   The income tax they owe to the USVI ($154) is shown on Form 8689, line 44. State tax filing software They enter this amount on line 45. State tax filing software They also include this additional amount ($154) on the dotted line next to the entry space and in the total on Form 1040, line 72. State tax filing software The Morenos will pay their USVI tax at the same time they file the copy of their U. State tax filing software S. State tax filing software income tax return with the U. State tax filing software S. State tax filing software Virgin Islands. State tax filing software This image is too large to be displayed in the current screen. State tax filing software Please click the link to view the image. State tax filing software Form 4563, page 1 for John Black This image is too large to be displayed in the current screen. State tax filing software Please click the link to view the image. State tax filing software Form 5074, for Tracy Grey This image is too large to be displayed in the current screen. State tax filing software Please click the link to view the image. State tax filing software Form 8689, page 1 for Juan and Carla Moreno Prev  Up  Next   Home   More Online Publications