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Vita Tax 2014

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Vita Tax 2014

Vita tax 2014 2. Vita tax 2014   American Opportunity Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible StudentException. Vita tax 2014 Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Refundable Part of Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. Vita tax 2014 They are the American opportunity credit (this chapter) and the lifetime learning credit ( chapter 3 ). Vita tax 2014 This chapter explains: Who can claim the American opportunity credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. Vita tax 2014 What is the tax benefit of the American opportunity credit. Vita tax 2014   For the tax year, you may be able to claim an American opportunity credit of up to $2,500 for qualified education expenses paid for each eligible student. Vita tax 2014   A tax credit reduces the amount of income tax you may have to pay. Vita tax 2014 Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Vita tax 2014 Forty percent of the American opportunity credit may be refundable. Vita tax 2014 This means that if the refundable portion of your credit is more than your tax, the excess will be refunded to you. Vita tax 2014   Your allowable American opportunity credit may be limited by the amount of your income. Vita tax 2014 Also, the nonrefundable part of the credit may be limited by the amount of your tax. Vita tax 2014 Overview of the American opportunity credit. Vita tax 2014   See Table 2-1, Overview of the American Opportunity Credit , for the basics of this credit. Vita tax 2014 The details are discussed in this chapter. Vita tax 2014 Can you claim more than one education credit this year. Vita tax 2014   For each student, you can elect for any year only one of the credits. Vita tax 2014 For example, if you elect to take the American opportunity credit for a child on your 2013 tax return, you cannot use that same child's qualified education expenses to figure the lifetime learning credit for 2013. Vita tax 2014   If you pay qualified education expenses for more than one student in the same year, you can choose to take the American opportunity credit on a per-student, per-year basis. Vita tax 2014 If you pay qualified education expenses for a student (or students) for whom you do not claim the American opportunity credit, you can use the adjusted qualified education expenses of that student (or those students) in figuring your lifetime learning credit. Vita tax 2014 This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. Vita tax 2014 Differences between the American opportunity and lifetime learning credits. Vita tax 2014   There are several differences between these two credits. Vita tax 2014 For example, you can claim the American opportunity credit based on the same student's expenses for no more than 4 tax years, which includes any tax years you claimed the Hope Scholarship Credit for that student. Vita tax 2014 However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. Vita tax 2014 The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. Vita tax 2014 If you claim the American opportunity credit for any student, you can choose between using that student's adjusted qualified education expenses for the American opportunity credit or the lifetime learning credit. Vita tax 2014 If you have the choice, the American opportunity credit will always be greater than the lifetime learning credit. Vita tax 2014 Table 2-1. Vita tax 2014 Overview of the American Opportunity Credit Maximum credit Up to $2,500 credit per eligible student Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable 40% of credit may be refundable; the rest is nonrefundable Number of years of postsecondary education Available ONLY if the student had not completed the first 4 years of postsecondary education before 2013 Number of tax years credit available Available ONLY for 4 tax years per eligible student (including any year(s) Hope Scholarship Credit was claimed) Type of program required Student must be pursuing a program leading to a degree or other recognized education credential Number of courses Student must be enrolled at least half time for at least one academic period that begins during the tax year Felony drug conviction As of the end of 2013, the student had not been convicted of a felony for possessing or distributing a controlled substance Qualified expenses Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Can You Claim the Credit The following rules will help you determine if you are eligible to claim the American opportunity credit on your tax return. Vita tax 2014 Who Can Claim the Credit Generally, you can claim the American opportunity credit if all three of the following requirements are met. Vita tax 2014 You pay qualified education expenses of higher education. Vita tax 2014 You pay the education expenses for an eligible student. Vita tax 2014 The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Vita tax 2014 Student qualifications. Vita tax 2014   Generally, you can take the American opportunity credit for a student only if all of the following four requirements are met. Vita tax 2014 As of the beginning of 2013, the student had not completed the first four years of postsecondary education (generally, the freshman through senior years of college), as determined by the eligible educational institution. Vita tax 2014 For this purpose, do not include academic credit awarded solely because of the student's performance on proficiency examinations. Vita tax 2014 Neither the American opportunity credit nor the Hope Scholarship Credit has been claimed (by you or anyone else) for this student for any four tax years before 2013. Vita tax 2014 If the American opportunity credit (and Hope Scholarship Credit) has been claimed for this student for any three or fewer tax years before 2013, this requirement is met. Vita tax 2014 For at least one academic period beginning (or treated as beginning) in 2013, the student both: Was enrolled in a program that leads to a degree, certificate, or other recognized educational credential; and Carried at least one-half the normal full-time workload for his or her course of study. Vita tax 2014 The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Vita tax 2014 However, the standard may not be lower than any of those established by the U. Vita tax 2014 S. Vita tax 2014 Department of Education under the Higher Education Act of 1965. Vita tax 2014 For purposes of whether the student satisfies this third requirement for 2013, treat an academic period beginning in the first three months of 2014 as if it began in 2013 if qualified education expenses for the student were paid in 2013 for that academic period. Vita tax 2014 See Prepaid expenses, later. Vita tax 2014 As of the end of 2013, the student had not been convicted of a federal or state felony for possessing or distributing a controlled substance. Vita tax 2014 Example 1. Vita tax 2014 Sharon was eligible for the Hope Scholarship Credit for 2007 and 2008 and for the American opportunity credit for 2010 and 2012. Vita tax 2014 Her parents claimed the Hope Scholarship Credit for Sharon on their tax returns for 2007 and 2008 and claimed the American opportunity credit for Sharon on their 2010 tax return. Vita tax 2014 Sharon claimed the American opportunity credit on her 2012 tax return. Vita tax 2014 The American opportunity credit and Hope Scholarship Credit have been claimed for Sharon for four tax years before 2013. Vita tax 2014 Therefore, the American opportunity credit cannot be claimed by Sharon for 2013. Vita tax 2014 If Sharon were to file Form 8863 for 2013, she would check “Yes” for Part III, line 23, and would be eligible to claim only the lifetime learning credit. Vita tax 2014 Example 2. Vita tax 2014 Wilbert was eligible for the American opportunity credit for 2009, 2010, 2011, and 2013. Vita tax 2014 His parents claimed the American opportunity credit for Wilbert on their tax returns for 2009, 2010, and 2011. Vita tax 2014 No one claimed an American opportunity credit or Hope Scholarship Credit for Wilbert for any other tax year. Vita tax 2014 The American opportunity credit and Hope Scholarship Credit have been claimed for Wilbert for only three tax years before 2013. Vita tax 2014 Therefore, Wilbert meets the second requirement to be eligible for the American opportunity credit. Vita tax 2014 If Wilbert were to file Form 8863 for 2013, he would check “No” for Part III, line 23. Vita tax 2014 If Wilbert meets all of the other requirements, he is eligible for the American opportunity credit. Vita tax 2014 Example 3. Vita tax 2014 Glenda enrolls on a full-time basis in a degree program for the 2014 Spring semester, which begins in January 2014. Vita tax 2014 Glenda pays her tuition for the 2014 Spring semester in December 2013. Vita tax 2014 Because the tuition Glenda paid in 2013 relates to an academic period that begins in the first 3 months of 2014, her eligibility to claim an American opportunity credit in 2013 is determined as if the 2014 Spring semester began in 2013. Vita tax 2014 If the requirements above are not met for any student, you cannot take the American opportunity credit for that student. Vita tax 2014 You may be able to take the lifetime learning credit for part or all of that student's qualified education expenses instead. Vita tax 2014 Note. Vita tax 2014 Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. Vita tax 2014 “Qualified education expenses” are defined later under Qualified Education Expenses . Vita tax 2014 “Eligible students” are defined later under Who Is an Eligible Student . Vita tax 2014 A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Vita tax 2014 You may find Figure 2-1, Can You Claim the American Opportunity Credit for 2013 , later, helpful in determining if you can claim an American opportunity credit on your tax return. Vita tax 2014 This image is too large to be displayed in the current screen. Vita tax 2014 Please click the link to view the image. Vita tax 2014 Figure 2-1 Can you claim the American opportunity credit for 2012? Who Cannot Claim the Credit You cannot claim the American opportunity credit for 2013 if any of the following apply. Vita tax 2014 Your filing status is married filing separately. Vita tax 2014 You are listed as a dependent on another person's tax return (such as your parents'). Vita tax 2014 See Who Can Claim a Dependent's Expenses , later. Vita tax 2014 Your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more in the case of a joint return). Vita tax 2014 MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Vita tax 2014 You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Vita tax 2014 More information on nonresident aliens can be found in Publication 519, U. Vita tax 2014 S. Vita tax 2014 Tax Guide for Aliens. Vita tax 2014 What Expenses Qualify The American opportunity credit is based on adjusted qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Vita tax 2014 Generally, the credit is allowed for adjusted qualified education expenses paid in 2013 for an academic period beginning in 2013 or beginning in the first three months of 2014. Vita tax 2014 For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning January 2014, you can use that $1,500 in figuring your 2013 credit. Vita tax 2014 Academic period. Vita tax 2014   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Vita tax 2014 In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Vita tax 2014 Paid with borrowed funds. Vita tax 2014   You can claim an American opportunity credit for qualified education expenses paid with the proceeds of a loan. Vita tax 2014 Use the expenses to figure the American opportunity credit for the year in which the expenses are paid, not the year in which the loan is repaid. Vita tax 2014 Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Vita tax 2014 Student withdraws from class(es). Vita tax 2014   You can claim an American opportunity credit for qualified education expenses not refunded when a student withdraws. Vita tax 2014 Qualified Education Expenses For purposes of the American opportunity credit, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Vita tax 2014 Eligible educational institution. Vita tax 2014   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Vita tax 2014 S. Vita tax 2014 Department of Education. Vita tax 2014 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Vita tax 2014 The educational institution should be able to tell you if it is an eligible educational institution. Vita tax 2014   Certain educational institutions located outside the United States also participate in the U. Vita tax 2014 S. Vita tax 2014 Department of Education's Federal Student Aid (FSA) programs. Vita tax 2014 Related expenses. Vita tax 2014   Student-activity fees are included in qualified education expenses only if the fees must be paid to the institution as a condition of enrollment or attendance. Vita tax 2014   However, expenses for books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution. Vita tax 2014 Prepaid expenses. Vita tax 2014   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Vita tax 2014 See Academic period, earlier. Vita tax 2014 For example, if you pay $2,000 in December 2013, for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Vita tax 2014    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Vita tax 2014   In the following examples, assume that each student is an eligible student at an eligible educational institution. Vita tax 2014 Example 1. Vita tax 2014 Jefferson is a sophomore in University V's degree program in dentistry. Vita tax 2014 This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Vita tax 2014 Because the equipment rental is needed for his course of study, Jefferson's equipment rental fee is a qualified expense. Vita tax 2014 Example 2. Vita tax 2014 Grace and William, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Vita tax 2014 The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Vita tax 2014 William bought his books from a friend; Grace bought hers at College W's bookstore. Vita tax 2014 Both are qualified education expenses for the American opportunity credit. Vita tax 2014 Example 3. Vita tax 2014 When Kelly enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Vita tax 2014 This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. Vita tax 2014 No portion of the fee covers personal expenses. Vita tax 2014 Although labeled as a student activity fee, the fee is required for Kelly's enrollment and attendance at College X and is a qualified expense. Vita tax 2014 No Double Benefit Allowed You cannot do any of the following. Vita tax 2014 Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim an American opportunity credit based on those same expenses. Vita tax 2014 Claim an American opportunity credit in the same year that you are claiming a tuition and fees deduction for the same student. Vita tax 2014 Claim an American opportunity credit for any student and use any of that student's expenses in figuring your lifetime learning credit. Vita tax 2014 Figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP) using the same expenses you used to figure the American opportunity credit. Vita tax 2014 See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. Vita tax 2014 Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Vita tax 2014 See Adjustments to Qualified Education Expenses, next. Vita tax 2014 Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Vita tax 2014 The result is the amount of adjusted qualified education expenses for each student. Vita tax 2014 Tax-free educational assistance. Vita tax 2014   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Vita tax 2014 See Academic period, earlier. Vita tax 2014   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Vita tax 2014 This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Vita tax 2014   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. Vita tax 2014 If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. Vita tax 2014   Tax-free educational assistance includes: The tax-free parts of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Vita tax 2014 Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Vita tax 2014 Generally, any scholarship or fellowship is treated as tax free. Vita tax 2014 However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Vita tax 2014 The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Vita tax 2014 The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Vita tax 2014 You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Vita tax 2014 For examples, see Coordination with Pell grants and other scholarships, later. Vita tax 2014 Refunds. Vita tax 2014   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Vita tax 2014 Some tax-free educational assistance received after 2013 may be treated as a refund. Vita tax 2014 See Tax-free educational assistance, earlier. Vita tax 2014 Refunds received in 2013. Vita tax 2014   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Vita tax 2014 Refunds received after 2013 but before your income tax return is filed. Vita tax 2014   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Vita tax 2014 Refunds received after 2013 and after your income tax return is filed. Vita tax 2014   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Vita tax 2014 See Credit recapture, next. Vita tax 2014 Credit recapture. Vita tax 2014    If any tax-free educational assistance for the qualified education expenses paid in 2013, or any refund of your qualified education expenses paid in 2013, is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Vita tax 2014 You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. Vita tax 2014 You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you claimed the refigured credit(s). Vita tax 2014 Include that amount as an additional tax for the year the refund or tax-free assistance was received. Vita tax 2014 Example. Vita tax 2014   You paid $7,000 tuition and fees in August 2013, and your child began college in September 2013. Vita tax 2014 You filed your 2013 tax return on February 17, 2014, and claimed an American opportunity credit of $2,500. Vita tax 2014 After you filed your return, you received a refund of $4,000. Vita tax 2014 You must refigure your 2013 American opportunity credit using $3,000 of qualified education expenses instead of $7,000. Vita tax 2014 The refigured credit is $2,250. Vita tax 2014 The increase to your tax liability is also $250. Vita tax 2014 Include the difference of $250 as additional tax on your 2014 tax return. Vita tax 2014 See the instructions for your 2014 income tax return to determine where to include this tax. Vita tax 2014 If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. Vita tax 2014 Amounts that do not reduce qualified education expenses. Vita tax 2014   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Vita tax 2014   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Vita tax 2014 The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Vita tax 2014 The use of the money is not restricted. Vita tax 2014 Example 1. Vita tax 2014 Joan paid $3,000 for tuition and $5,000 for room and board at University X. Vita tax 2014 The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Vita tax 2014 To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Vita tax 2014 The terms of the scholarship state that it can be used to pay any of Joan's college expenses. Vita tax 2014 University X applies the $2,000 scholarship against Joan's $8,000 total bill, and Joan pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Vita tax 2014 Joan does not report any portion of the scholarship as income on her tax return. Vita tax 2014 In figuring the amount of either education credit (American opportunity or lifetime learning), Joan must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Vita tax 2014 The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Vita tax 2014 Joan is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship). Vita tax 2014 Example 2. Vita tax 2014 The facts are the same as in Example 1, except that Joan reports her entire scholarship as income on her tax return. Vita tax 2014 Because Joan reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Vita tax 2014 Joan is treated as having paid $3,000 in qualified education expenses. Vita tax 2014 Coordination with Pell grants and other scholarships. Vita tax 2014   In some cases, you may be able to reduce your tax liability by including scholarships in income. Vita tax 2014 If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. Vita tax 2014 The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Vita tax 2014 Example 1—No scholarship. Vita tax 2014 Bill Pass, age 28 and unmarried, enrolled full-time in 2013 as a first-year student at a local college to earn a degree in law enforcement. Vita tax 2014 This was his first year of postsecondary education. Vita tax 2014 During 2013, he paid $5,600 for his qualified education expenses and $4,400 for his room and board for the fall 2013 semester. Vita tax 2014 He and the college meet all the requirements for the American opportunity credit. Vita tax 2014 Bill's AGI and his MAGI, for purposes of figuring his credit, are $30,000. Vita tax 2014 Bill takes the standard deduction of $5,950 and personal exemption of $3,800, reducing his AGI to taxable income of $20,250. Vita tax 2014 His income tax liability, before credits, is $2,599 and Bill claims no credits other than the American opportunity credit. Vita tax 2014 He figures his American opportunity credit based on qualified education expenses of $4,000, which results in a credit of $2,500 and tax after credits of $99. Vita tax 2014 Example 2—Scholarship excluded from income. Vita tax 2014 The facts are the same as in Example 1—No scholarship, except that Bill was awarded a $5,600 scholarship. Vita tax 2014 Under the terms of his scholarship, it may be used to pay any educational expenses, including room and board. Vita tax 2014 If Bill excludes the scholarship from income, he will be deemed (for purposes of computing his education credit) to have used the scholarship to pay for tuition, required fees, and course materials. Vita tax 2014 His adjusted qualified education expenses will be zero and he will not have an education credit. Vita tax 2014 Therefore, Bill's tax after credits would be $2,599. Vita tax 2014 Example 3—Scholarship partially included in income. Vita tax 2014 The facts are the same as in Example 2—Scholarship excluded from income. Vita tax 2014 If, unlike Example 2, Bill includes $4,000 of the scholarship in income, he will be deemed to have used that amount to pay for room and board. Vita tax 2014 The remaining $1,600 of the $5,600 scholarship will reduce his qualified education expenses and his adjusted qualified education expenses will be $4,000. Vita tax 2014 Bill's AGI will increase to $34,000, his taxable income will increase to $24,250, and his tax before credits will increase to $3,199. Vita tax 2014 Based on his adjusted qualified education expenses of $4,000, Bill would be able to claim an American opportunity tax credit of $2,500 and his tax after credits would be $699. Vita tax 2014 Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Vita tax 2014 This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Vita tax 2014 Sports, games, hobbies, and noncredit courses. Vita tax 2014   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Vita tax 2014 However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Vita tax 2014 Comprehensive or bundled fees. Vita tax 2014   Some eligible educational institutions combine all of their fees for an academic period into one amount. Vita tax 2014 If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed earlier, contact the institution. Vita tax 2014 The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. Vita tax 2014 See Figuring the Credit , later, for more information about Form 1098-T. Vita tax 2014 Who Is an Eligible Student To claim the American opportunity credit, the student for whom you pay qualified education expenses must be an eligible student. Vita tax 2014 This is a student who meets all of the following requirements. Vita tax 2014 The student did not have expenses that were used to figure an American opportunity credit in any 4 earlier tax years. Vita tax 2014 This includes any tax year(s) in which you claimed the Hope Scholarship Credit for the same student. Vita tax 2014 The student had not completed the first 4 years of postsecondary education (generally, the freshman, sophomore, junior, and senior years of college) before 2013. Vita tax 2014 For at least one academic period beginning in 2013, the student was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Vita tax 2014 The student has not been convicted of any federal or state felony for possessing or distributing a controlled substance as of the end of 2013. Vita tax 2014 These requirements are also shown in Figure 2-2, Who is an Eligible Student for the American Opportunity Credit , later. Vita tax 2014 Completion of first 4 years. Vita tax 2014   A student has completed the first 4 years of postsecondary education if the institution at which the student is enrolled awards the student 4 years of academic credit at that institution for coursework completed by the student before 2013. Vita tax 2014 This student generally would not be an eligible student for purposes of the American opportunity credit. Vita tax 2014 Exception. Vita tax 2014   Any academic credit awarded solely on the basis of the student's performance on proficiency examinations is disregarded in determining whether the student has completed 4 years of postsecondary education. Vita tax 2014 Enrolled at least half-time. Vita tax 2014   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Vita tax 2014   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Vita tax 2014 However, the standard may not be lower than any of those established by the U. Vita tax 2014 S. Vita tax 2014 Department of Education under the Higher Education Act of 1965. Vita tax 2014 Please click here for the text description of the image. Vita tax 2014 Figure 2-2 Example 1. Vita tax 2014 Mack graduated from high school in June 2012. Vita tax 2014 In September, he enrolled in an undergraduate degree program at College U, and attended full-time for both the 2012 fall and 2013 spring semesters. Vita tax 2014 For the 2013 fall semester, Mack was enrolled less than half-time. Vita tax 2014 Because Mack was enrolled in an undergraduate degree program on at least a half-time basis for at least one academic period that began during 2012 and at least one academic period that began during 2013, he is an eligible student for tax years 2012 and 2013 (including the 2013 fall semester when he enrolled at College U on less than a half-time basis). Vita tax 2014 Example 2. Vita tax 2014 After taking classes at College V on a part-time basis for a few years, Shelly became a full-time student for the 2013 spring semester. Vita tax 2014 College V classified Shelly as a second-semester senior (fourth year) for the 2013 spring semester and as a first-semester graduate student (fifth year) for the 2013 fall semester. Vita tax 2014 Because College V did not classify Shelly as having completed the first 4 years of postsecondary education as of the beginning of 2013, Shelly is an eligible student for tax year 2013. Vita tax 2014 Therefore, the qualified education expenses paid for the 2013 spring semester and the 2013 fall semester are taken into account in calculating the American opportunity credit for 2013. Vita tax 2014 Example 3. Vita tax 2014 During the 2012 fall semester, Larry was a high school student who took classes on a half-time basis at College X. Vita tax 2014 Larry was not enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Vita tax 2014 Because Larry was not enrolled in a degree program at College X during 2012, Larry was not an eligible student for tax year 2012. Vita tax 2014 Example 4. Vita tax 2014 The facts are the same as in Example 3. Vita tax 2014 During the 2013 spring semester, Larry again attended College X but not as part of a degree program. Vita tax 2014 Larry graduated from high school in June 2013. Vita tax 2014 For the 2013 fall semester, Larry enrolled as a full-time student in College X as part of a degree program, and College X awarded Larry credit for his prior coursework at College X. Vita tax 2014 Because Larry was enrolled in a degree program at College X for the 2013 fall term on at least a half-time basis, Larry is an eligible student for all of tax year 2013. Vita tax 2014 Therefore, the qualified education expenses paid for classes taken at College X during both the 2013 spring semester (during which Larry was not enrolled in a degree program) and the 2013 fall semester are taken into account in computing any American opportunity credit. Vita tax 2014 Example 5. Vita tax 2014 Dee graduated from high school in June 2012. Vita tax 2014 In January 2013, Dee enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a travel agent. Vita tax 2014 Dee completed the program in December 2013, and was awarded a certificate. Vita tax 2014 In January 2014, she enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a computer programmer. Vita tax 2014 Dee is an eligible student for both tax years 2013 and 2014 because she meets the degree requirement, the work load requirement, and the year of study requirement for those years. Vita tax 2014 Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim an American opportunity credit for your dependent's expenses for that year. Vita tax 2014 For you to claim an American opportunity credit for your dependent's expenses, you must also claim an exemption for your dependent. Vita tax 2014 You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Vita tax 2014 IF you. Vita tax 2014 . Vita tax 2014 . Vita tax 2014 THEN only. Vita tax 2014 . Vita tax 2014 . Vita tax 2014 claim an exemption on  your tax return for a  dependent who is an  eligible student you can claim the American opportunity credit based on that dependent's expenses. Vita tax 2014 The dependent cannot claim the credit. Vita tax 2014 do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the American opportunity credit. Vita tax 2014 You cannot claim the credit based on this dependent's expenses. Vita tax 2014 Expenses paid by dependent. Vita tax 2014   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Vita tax 2014 Include these expenses when figuring the amount of your American opportunity credit. Vita tax 2014    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Vita tax 2014 Expenses paid by you. Vita tax 2014   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the American opportunity credit. Vita tax 2014 If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the American opportunity credit. Vita tax 2014 Expenses paid by others. Vita tax 2014   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Vita tax 2014 In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Vita tax 2014 If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Vita tax 2014 Example. Vita tax 2014 In 2013, Ms. Vita tax 2014 Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Vita tax 2014 For purposes of claiming an American opportunity credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. Vita tax 2014 Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim an American opportunity credit. Vita tax 2014 If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim an American opportunity credit. Vita tax 2014 If anyone else claims an exemption for Todd, Todd cannot claim an American opportunity credit. Vita tax 2014 Tuition reduction. Vita tax 2014    When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Vita tax 2014 If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Vita tax 2014 For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Vita tax 2014 Figuring the Credit The amount of the American opportunity credit (per eligible student) is the sum of: 100% of the first $2,000 of qualified education expenses you paid for the eligible student, and 25% of the next $2,000 of qualified education expenses you paid for that student. Vita tax 2014 The maximum amount of American opportunity credit you can claim in 2013 is $2,500 multiplied by the number of eligible students. Vita tax 2014 You can claim the full $2,500 for each eligible student for whom you paid at least $4,000 of adjusted qualified education expenses. Vita tax 2014 However, the credit may be reduced based on your MAGI. Vita tax 2014 See Effect of the Amount of Your Income on the Amount of Your Credit , later. Vita tax 2014 Example. Vita tax 2014 Jack and Kay Ford are married and file a joint tax return. Vita tax 2014 For 2013, they claim an exemption for their dependent daughter on their tax return. Vita tax 2014 Their MAGI is $70,000. Vita tax 2014 Their daughter is in her junior (third) year of studies at the local university. Vita tax 2014 Jack and Kay paid qualified education expenses of $4,300 in 2013. Vita tax 2014 Jack and Kay, their daughter, and the local university meet all of the requirements for the American opportunity credit. Vita tax 2014 Jack and Kay can claim a $2,500 American opportunity credit in 2013. Vita tax 2014 This is 100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000. Vita tax 2014 Form 1098-T. Vita tax 2014   To help you figure your American opportunity credit, the student should receive Form 1098-T, Tuition Statement. Vita tax 2014 Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Vita tax 2014 An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Vita tax 2014 However, the amounts in boxes 1 and 2 of Form 1098-T might be different than what you paid. Vita tax 2014 When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Vita tax 2014   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Vita tax 2014    The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. Vita tax 2014 Effect of the Amount of Your Income on the Amount of Your Credit The amount of your American opportunity credit is phased out (gradually reduced) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). Vita tax 2014 You cannot claim an American opportunity credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return). Vita tax 2014 Modified adjusted gross income (MAGI). Vita tax 2014   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Vita tax 2014 MAGI when using Form 1040A. Vita tax 2014   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Vita tax 2014 MAGI when using Form 1040. Vita tax 2014   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Vita tax 2014 You can use Worksheet 2-1, next, to figure your MAGI. Vita tax 2014    Worksheet 2-1. Vita tax 2014 MAGI for the American Opportunity Credit 1. Vita tax 2014 Enter your adjusted gross income  (Form 1040, line 38)   1. Vita tax 2014   2. Vita tax 2014 Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Vita tax 2014       3. Vita tax 2014 Enter your foreign housing deduction (Form 2555, line 50)   3. Vita tax 2014       4. Vita tax 2014 Enter the amount of income from Puerto Rico you are excluding   4. Vita tax 2014       5. Vita tax 2014 Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Vita tax 2014       6. Vita tax 2014 Add the amounts on lines 2, 3, 4, and 5   6. Vita tax 2014   7. Vita tax 2014 Add the amounts on lines 1 and 6. Vita tax 2014  This is your modified adjusted  gross income. Vita tax 2014 Enter here and  on Form 8863, line 3   7. Vita tax 2014   Phaseout. Vita tax 2014   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 2-7, of Form 8863, Part I. Vita tax 2014 The same method is shown in the following example. Vita tax 2014 Example. Vita tax 2014 You are filing a joint return and your MAGI is $165,000. Vita tax 2014 In 2013, you paid $5,000 of qualified education expenses. Vita tax 2014 You figure a tentative American opportunity credit of $2,500 (100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000 of qualified education expenses). Vita tax 2014 Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($2,500) by a fraction. Vita tax 2014 The numerator of the fraction is $180,000 (the upper limit for those filing a joint return) minus your MAGI. Vita tax 2014 The denominator is $20,000, the range of incomes for the phaseout ($160,000 to $180,000). Vita tax 2014 The result is the amount of your phased out (reduced) American opportunity credit ($1,875). Vita tax 2014      $2,500 × $180,000 − $165,000  $20,000 = $1,875   Refundable Part of Credit Forty percent of the American opportunity credit is refundable for most taxpayers. Vita tax 2014 However, if you were under age 24 at the end of 2013 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Vita tax 2014 Instead, your allowed credit (figured on Form 8863, Part II) will be used to reduce your tax as a nonrefundable credit only. Vita tax 2014 You do not qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you. Vita tax 2014 You were: Under age 18 at the end of 2013, or Age 18 at the end of 2013 and your earned income (defined below) was less than one-half of your support (defined below), or Over age 18 and under age 24 at the end of 2013 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below). Vita tax 2014 At least one of your parents was alive at the end of 2013. Vita tax 2014 You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2013. Vita tax 2014 Earned income. Vita tax 2014   Earned income includes wages, salaries, professional fees, and other payments received for personal services actually performed. Vita tax 2014 Earned income includes the part of any scholarship or fellowship that represents payment for teaching, research, or other services performed by the student that are required as a condition for receiving the scholarship or fellowship. Vita tax 2014 Earned income does not include that part of the compensation for personal services rendered to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. Vita tax 2014   If you are a sole proprietor or a partner in a trade or business in which both personal services and capital are material income-producing factors, earned income also includes a reasonable allowance for compensation for personal services, but not more than 30% of your share of the net profits from that trade or business (after subtracting the deduction for one-half of self-employment tax). Vita tax 2014 However, if capital is not an income-producing factor and your personal services produced the business income, the 30% limit does not apply. Vita tax 2014 Support. Vita tax 2014   Your support includes food, shelter, clothing, medical and dental care, education, and the like. Vita tax 2014 Generally, the amount of the item of support will be the amount of expenses incurred by the one furnishing such item. Vita tax 2014 If the item of support is in the form of property or lodging, measure the amount of such item of support by its fair market value. Vita tax 2014 However, a scholarship received by you is not considered support if you are a full-time student. Vita tax 2014 See Publication 501 for details. Vita tax 2014 Full-time student. Vita tax 2014   You are a full-time student for 2013 if during any part of any 5 calendar months during the year you were enrolled as a full-time student at an eligible educational institution (defined earlier), or took a full-time, on-farm training course given by such an institution or by a state, county, or local government agency. Vita tax 2014 Claiming the Credit You claim the American opportunity credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Vita tax 2014 Enter the nonrefundable part of the credit on Form 1040, line 49, or on Form 1040A, line 31. Vita tax 2014 Enter the refundable part of the credit on Form 1040, line 66, or on Form 1040A, line 40. Vita tax 2014 A filled-in Form 8863 is shown at the end of this publication. Vita tax 2014 Note. Vita tax 2014 In Appendix A. Vita tax 2014 at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. Vita tax 2014 Prev  Up  Next   Home   More Online Publications
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The mission of the Department of Education is to foster educational excellence and to ensure equal access to educational opportunity for all.

The Vita Tax 2014

Vita tax 2014 Publication 901 - Main Content Table of Contents Application of Treaties Tax Exemptions Provided by TreatiesPersonal Services Income Professors, Teachers, and Researchers Students and Apprentices Wages and Pensions Paid by a Foreign Government Explanation of TablesTable 1 Table 2 Table 3 Application of Treaties The United States has income tax treaties with a number of foreign countries. Vita tax 2014 Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U. Vita tax 2014 S. Vita tax 2014 income taxes on certain items of income they receive from sources within the United States. Vita tax 2014 These reduced rates and exemptions vary among countries and specific items of income. Vita tax 2014 If there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for Form 1040NR. Vita tax 2014 Also see Publication 519. Vita tax 2014 Many of the individual states of the United States tax the income of their residents. Vita tax 2014 Therefore, you should consult the tax authorities of the state in which you live to find out if that state taxes the income of individuals and, if so, whether the tax applies to any of your income. Vita tax 2014 Tax treaties reduce the U. Vita tax 2014 S. Vita tax 2014 taxes of residents of foreign countries. Vita tax 2014 With certain exceptions, they do not reduce the U. Vita tax 2014 S. Vita tax 2014 taxes of U. Vita tax 2014 S. Vita tax 2014 citizens or residents. Vita tax 2014 U. Vita tax 2014 S. Vita tax 2014 citizens and residents are subject to U. Vita tax 2014 S. Vita tax 2014 income tax on their worldwide income. Vita tax 2014 Treaty provisions generally are reciprocal (apply to both treaty countries); therefore, a U. Vita tax 2014 S. Vita tax 2014 citizen or resident who receives income from a treaty country may refer to the tables in this publication to see if a tax treaty might affect the tax to be paid to that foreign country. Vita tax 2014 Foreign taxing authorities sometimes require certification from the U. Vita tax 2014 S. Vita tax 2014 Government that an applicant filed an income tax return as a U. Vita tax 2014 S. Vita tax 2014 citizen or resident, as part of the proof of entitlement to the treaty benefits. Vita tax 2014 See Form 8802, Application for United States Residency Certification, to request a certification. Vita tax 2014 Disclosure of a treaty-based position that reduces your tax. Vita tax 2014   If you take the position that any U. Vita tax 2014 S. Vita tax 2014 tax is overruled or otherwise reduced by a U. Vita tax 2014 S. Vita tax 2014 treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. Vita tax 2014 If you are not required to file a return because of your treaty-based position, you must file a return anyway to report your position. Vita tax 2014 The filing of Form 8833 does not apply to a reduced rate of withholding tax on noneffectively connected income, such as dividends, interest, rents or royalties, or to a reduced rate of tax on pay received for services performed as an employee, including pensions, annuities, and social security. Vita tax 2014 For more information, see Publication 519 and the Form 8833 instructions. Vita tax 2014   If you fail to file Form 8833, you may have to pay a $1,000 penalty. Vita tax 2014 Corporations are subject to a $10,000 penalty for each failure. Vita tax 2014 Tax Exemptions Provided by Treaties In addition to the tables in the back of this publication, this publication contains discussions of the exemptions from tax and certain other effects of the tax treaties on the following types of income. Vita tax 2014 Pay for certain personal services performed in the United States. Vita tax 2014 Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time. Vita tax 2014 Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience. Vita tax 2014 Wages, salaries, and pensions paid by a foreign government. Vita tax 2014 Personal Services Income Pay for certain personal services performed in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if you are a resident of one of the countries discussed below, if you are in the United States for a limited number of days, and if you meet certain other conditions. Vita tax 2014 For this purpose, the word “day” means a day during any part of which you are physically present in the United States. Vita tax 2014 Terms defined. Vita tax 2014   Several terms appear in many of the discussions that follow. Vita tax 2014 The exact meanings of the terms are determined by the particular tax treaty under discussion; thus, the meanings vary among treaties. Vita tax 2014 The definitions that follow are, therefore, general definitions that may not give the exact meaning intended by a particular treaty. Vita tax 2014   The terms fixed base and permanent establishment generally mean a fixed place of business, such as a place of management, a branch, an office, a factory, a warehouse, or a mining site, through which an enterprise carries on its business. Vita tax 2014   The term borne by generally means having ultimate financial accounting responsibility for, or providing the monetary resources for, an expenditure or payment, even if another entity in another location actually made the expenditure or payment. Vita tax 2014 Australia Income that residents of Australia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Pay that residents of Australia receive for labor or personal services performed in the United States as employees (dependent personal services), including services as a director of a company, is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if: The residents are in the United States for no more than 183 days during the tax year, The pay is paid by, or on behalf of, an employer or company that is not a resident of the United States, and The pay is not deductible in determining the taxable income of the trade or business of the employer (or company) in the United States. Vita tax 2014 These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Australia who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Austria Income that residents of Austria receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Austria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Austria who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Income received by a resident of Austria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 Bangladesh Income that residents of Bangladesh receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, or Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Bangladesh receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to pubic entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Bangladesh who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Regardless of these limits, income of Bangladesh entertainers is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if their visit to the United States is wholly or mainly supported by public funds of Bangladesh, its political subdivisions, or local authorities. Vita tax 2014 Income received from employment as a member of the regular complement of a ship or an aircraft operated by a Bangladesh enterprise in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 If the ship or aircraft is operated by a U. Vita tax 2014 S. Vita tax 2014 enterprise, the income is subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 If the resident of Bangladesh is a shareholder in a U. Vita tax 2014 S. Vita tax 2014 corporation, these exemptions do not apply to directors' fees received as a member of the board of directors of the U. Vita tax 2014 S. Vita tax 2014 corporation. Vita tax 2014 The amount received by the shareholder that is more than the amount paid to a director that is not a shareholder is subject to U. Vita tax 2014 S. Vita tax 2014 tax at the rate of 15%. Vita tax 2014 Barbados Income that residents of Barbados receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 89 days during the tax year, Earn net income for independent services provided to U. Vita tax 2014 S. Vita tax 2014 residents that is not more than $5,000 (there is no dollar limit if the contractors are not U. Vita tax 2014 S. Vita tax 2014 residents), and Do not have a regular base available in the United States for performing the services. Vita tax 2014 If they have a regular base available in the United States but otherwise meet the conditions for exemption, they are taxed only on the income attributable to the regular base. Vita tax 2014 Income that residents of Barbados receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the residents meet four requirements. Vita tax 2014 They are in the United States for no more than 183 days during the calendar year. Vita tax 2014 The income earned in the calendar year in the United States is not more than $5,000. Vita tax 2014 Their income is paid by or for an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The income is not borne by a permanent establishment or regular base of the employer in the United States. Vita tax 2014 Income of a Barbadian resident from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 These exemptions do not apply to Barbadian resident public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $250 per day or $4,000 in the tax year, not including reimbursed expenses, from their entertainment activities in the United States. Vita tax 2014 However, the exemptions do apply regardless of these limits on gross receipts if the entertainer's visit to the United States is substantially supported by Barbadian public funds or if the entertainer's services are provided to a nonprofit organization. Vita tax 2014 Belgium Income that residents of Belgium receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Vita tax 2014 Income that residents of Belgium receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 The exemption does not apply to directors' fees and similar payments received by a resident of Belgium for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Belgium who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Income received by a resident of Belgium for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 Bulgaria Income that residents of Bulgaria receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Vita tax 2014 Under Article 5 (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. Vita tax 2014 Income that residents of Bulgaria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 The exemption does not apply to directors' fees and similar payments received by a resident of Bulgaria as a member of the board of directors of a U. Vita tax 2014 S. Vita tax 2014 company. Vita tax 2014 Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Bulgaria who earn more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Income received by a resident of Bulgaria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 Canada Income that residents of Canada receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article VII (Business Profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Vita tax 2014 Under Article V (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. Vita tax 2014 Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if it is not more than $10,000 for the year. Vita tax 2014 If the income is more than $10,000 for the year, it is exempt only if: The residents are present in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and The income is not paid by, or on behalf of, a U. Vita tax 2014 S. Vita tax 2014 resident, and is not borne by a permanent establishment in the United States. Vita tax 2014 Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Canada who derive more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the calendar year are subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 However, this article does not apply to athletes participating in team sports in leagues with regularly scheduled games in both Canada and the United States. Vita tax 2014 Pay received by a resident of Canada for employment regularly done in more than one country on a ship, aircraft, motor vehicle, or train operated by a Canadian resident is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 China, People's Republic of Income that residents of the People's Republic of China receive for personal services as independent contractors or self-employed individuals (independent personal services) that they perform during the tax year in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are present in the United States for no more than 183 days in the calendar year, and Do not have a fixed base regularly available in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Vita tax 2014 Pay received by residents of the People's Republic of China for services performed as employees (dependent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if: The residents are present in the United States for no more than 183 days in the calendar year, The pay is paid by or for an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident, and The pay is not borne by a permanent establishment or fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to directors' fees for service on the board of directors of a U. Vita tax 2014 S. Vita tax 2014 corporation. Vita tax 2014 These exemptions generally do not apply to income received as a public entertainer (such as a theater, motion picture, radio, or television artist, musician, or athlete). Vita tax 2014 However, income of athletes or public entertainers from China participating in a cultural exchange program agreed upon by the U. Vita tax 2014 S. Vita tax 2014 and Chinese governments is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Commonwealth of Independent States Income that residents of a C. Vita tax 2014 I. Vita tax 2014 S. Vita tax 2014 member receive for performing personal services in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if those residents are in the United States for no more than 183 days during the tax year. Vita tax 2014 Pay received by an employee who is a member of the regular complement of a ship or aircraft operated in international traffic by a C. Vita tax 2014 I. Vita tax 2014 S. Vita tax 2014 member or a resident of a C. Vita tax 2014 I. Vita tax 2014 S. Vita tax 2014 member is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Cyprus Income that residents of Cyprus receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are present in the United States for less than 183 days in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Vita tax 2014 Pay received by residents of Cyprus from services performed as employees (dependent personal services), including services as an officer of a corporation, is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if: The residents are in the United States for less than 183 days during the tax year, The pay is paid by or for an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident, and The pay is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. Vita tax 2014 Pay received by a Cyprus resident for performing personal services as an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of Cyprus is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 These exemptions do not apply to Cyprus resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $500 per day or $5,000 for the tax year, not including reimbursed expenses, from their entertainment activities in the United States. Vita tax 2014 Directors' fees received by residents of Cyprus for service on the board of directors of a U. Vita tax 2014 S. Vita tax 2014 corporation are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax to the extent of a reasonable fixed amount payable to all directors for each day of attendance at directors' meetings held in the United States. Vita tax 2014 Czech Republic Income that residents of the Czech Republic receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are present in the United States for no more than 183 days in any 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed only on income attributable to the fixed base. Vita tax 2014 Income that residents of the Czech Republic receive for employment in the United States (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following three requirements are met. Vita tax 2014 The resident is present in the United States for no more than 183 days in any 12-month period. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to income residents of the Czech Republic receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year. Vita tax 2014 Regardless of these limits, income of Czech entertainers and sportsmen is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if their visit to the United States is substantially supported by public funds of the Czech Republic, its political subdivisions, or local authorities, or the visit is made pursuant to a specific arrangement between the United States and the Czech Republic. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of the Czech Republic as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 Income from employment as a member of the regular complement of a ship or aircraft operated by a Czech enterprise in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 If the ship or aircraft is operated by a U. Vita tax 2014 S. Vita tax 2014 enterprise, the income is subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Denmark Income that residents of Denmark receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Denmark receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of Denmark as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, and athletes) from Denmark who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Income received by a resident of Denmark for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 Egypt Income that residents of Egypt receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they are in the United States for no more than 89 days during the tax year. Vita tax 2014 Income that residents of Egypt receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet four requirements. Vita tax 2014 They are in the United States for no more than 89 days during the tax year. Vita tax 2014 They are employees of a resident of, or a permanent establishment in, Egypt. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 Their income is subject to Egyptian tax. Vita tax 2014 This exemption does not apply to pay received by a resident of Egypt who is an employee and member of the regular complement of a ship or an aircraft operated in international traffic by a resident of the United States. Vita tax 2014 These exemptions do not apply to Egyptian resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes), who earn income for services as public entertainers if the gross amount of the income is more than $400 for each day they are in the United States performing the services. Vita tax 2014 Estonia Income that residents of Estonia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Estonia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following requirements are met. Vita tax 2014 The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of Estonia as a member of the board of directors or similar body of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a United States enterprise is subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 These exemptions do not apply to income residents of Estonia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. Vita tax 2014 Regardless of these limits, income of Estonian entertainers or athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if their visit to the United States is wholly or mainly supported by public funds of Estonia, its political subdivisions, or local authorities. Vita tax 2014 Finland Income that residents of Finland receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Finland receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet three requirements. Vita tax 2014 They are in the United States for no more than 183 days during any 12-month period. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 Their income is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. Vita tax 2014 The exemption does not apply to pay received by a resident of Finland who is an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of the United States. Vita tax 2014 These exemptions do not apply to income residents of Finland receive as public entertainers or sportsmen if the gross income, including reimbursed expenses, is more than $20,000 for their personal activities in the United States during the calendar year. Vita tax 2014 France Income that residents of France receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of France receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet three requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 Income for services performed by a resident of France as an employee and member of the regular complement of a ship or an aircraft operated in international traffic is exempt from tax in the United States. Vita tax 2014 These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, or musicians), or sportsmen from France who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Regardless of these limits, income of French entertainers or sportsmen is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if their visit is principally supported by public funds of France. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of France as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 Germany Income that residents of Germany receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Vita tax 2014 Income that residents of Germany receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the residents meet three requirements. Vita tax 2014 They are in the United States for no more than 183 days during the calendar year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 The income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 Pay received by a resident of Germany for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 The exemption does not apply to directors' fees and other similar payments received by a resident of Germany for services performed in the United States as a member of the board of directors of a company resident in the United States. Vita tax 2014 Income residents of Germany receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes is subject to U. Vita tax 2014 S. Vita tax 2014 tax if their gross receipts, including reimbursed expenses, from their entertainment activities in the United States are more than $20,000 during the calendar year. Vita tax 2014 Income of German entertainers or athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if their visit to the United States is substantially supported by public funds of Germany, its political subdivisions, or local authorities. Vita tax 2014 Greece Income that residents of Greece receive for labor or personal services (including practicing liberal and artistic professions) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they are in the United States for no more than 183 days during the tax year and the pay is not more than $10,000. Vita tax 2014 The pay, regardless of amount, is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if it is for labor or personal services performed as employees of, or under contract with, a resident of Greece or a Greek corporation or other entity of Greece, and if the residents are in the United States for no more than 183 days during the tax year. Vita tax 2014 Hungary Income that residents of Hungary receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available in the United States. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Hungary receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet three requirements. Vita tax 2014 They are in the United States for no more than 183 days during the tax year. Vita tax 2014 Their income is paid by or on behalf of an employer who is not a resident of the United States. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 Pay received by an employee who is a member of the regular complement of a ship or aircraft operated by a Hungarian enterprise in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 If the ship or aircraft is operated by a U. Vita tax 2014 S. Vita tax 2014 enterprise, the pay is subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Iceland Income that residents of Iceland receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Vita tax 2014 Income that residents of Iceland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 The exemption does not apply to directors' fees and similar payments received by a resident of Iceland as a member of the board of directors of a U. Vita tax 2014 S. Vita tax 2014 company. Vita tax 2014 Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Iceland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Income received by a resident of Iceland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 India Income that residents of India receive for performing personal services in the United States during the tax year as independent contractors or self-employed individuals (independent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are present in the United States for no more than 89 days during the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed only on income attributable to the fixed base. Vita tax 2014 Income that residents of India receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet three requirements. Vita tax 2014 They are present in the United States for no more than 183 days during the tax year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States. Vita tax 2014 The exemption does not apply to pay received by a resident of India for services performed as an employee aboard a ship or aircraft operated in international traffic by a U. Vita tax 2014 S. Vita tax 2014 enterprise. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by an Indian resident as a member of the board of directors of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 These exemptions do not apply to income residents of India receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their net income is more than $1,500 during the tax year for their entertainment activities in the United States. Vita tax 2014 Regardless of this limit, the income of Indian entertainers and athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if their visit to the United States is wholly or substantially supported from the public funds of the Indian Government, its political subdivisions, or local authorities. Vita tax 2014 Indonesia Income that residents of Indonesia receive for performing personal services as individual contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are present in the United States for no more than 119 days during any consecutive 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Vita tax 2014 Income that residents of Indonesia receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet three requirements. Vita tax 2014 They are present in the United States no more than 119 days during any consecutive 12-month period. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 The income is not borne or reimbursed by a permanent establishment the employer has in the United States. Vita tax 2014 Pay received by an individual for services performed as an employee aboard a ship or aircraft operated by an Indonesian resident in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the individual is a member of the regular complement of the ship or aircraft. Vita tax 2014 These exemptions do not apply to income residents of Indonesia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their gross receipts, including reimbursed expenses, are more than $2,000 during any consecutive 12-month period. Vita tax 2014 Regardless of these limits, income of Indonesian entertainers and athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if their visit to the United States is substantially supported or sponsored by the Indonesian Government and the Indonesian competent authority certifies that the entertainers or athletes qualify for this exemption. Vita tax 2014 Ireland Income that residents of Ireland receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Ireland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of Ireland as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 However, amounts received for attending meetings in Ireland are not subject to U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 Income received by a resident of Ireland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax. Vita tax 2014 These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Ireland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Israel Income that residents of Israel receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they are in the United States for no more than 182 days during the tax year. Vita tax 2014 Income that residents of Israel receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet four requirements. Vita tax 2014 They are in the United States for no more than 182 days during the tax year. Vita tax 2014 They are employees of a resident of, or a permanent establishment in, Israel. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 Their income is subject to Israeli tax. Vita tax 2014 The exemption does not apply to pay received by an employee for labor or personal services performed as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 These exemptions do not apply to income that residents of Israel receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes), if the gross amount of the income is more than $400 for each day they are in the United States performing the services. Vita tax 2014 Italy Income that residents of Italy receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Italy receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following requirements are met. Vita tax 2014 The residents are in the United States for no more than 183 days during the tax year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of Italy for services performed in the United States as a member of the board of directors of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Pay received for employment regularly exercised aboard a ship or aircraft operated by a U. Vita tax 2014 S. Vita tax 2014 enterprise is subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 These exemptions do not apply to income residents of Italy receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) if they are present in the United States for more than 90 days during the tax year or their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year for their entertainment activities in the United States. Vita tax 2014 Jamaica Income that residents of Jamaica receive for the performance of personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 89 days during the tax year, Do not have a fixed base regularly available to them in the United States for performing their services, and Earn net income for those services that is not more than $5,000 during the tax year if the income is from a U. Vita tax 2014 S. Vita tax 2014 contractor. Vita tax 2014 If they have a fixed base available in the United States, they are taxed only on the income that is attributable to the fixed base. Vita tax 2014 There is no dollar limit for condition (3) if the contractor is from a country other than the United States. Vita tax 2014 Income that residents of Jamaica receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet four requirements. Vita tax 2014 They are in the United States for no more than 183 days during the tax year. Vita tax 2014 Their income is paid by or for an employer who is not a resident of the United States. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 Their net income received for the services is not more than $5,000 during the tax year. Vita tax 2014 Pay received from employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a Jamaican enterprise is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 If the ship or aircraft is operated by a U. Vita tax 2014 S. Vita tax 2014 enterprise, the pay is subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 These exemptions do not apply to income that residents of Jamaica receive for performing services in the United States as entertainers, such as theater, motion picture, radio, or television artists, musicians, or athletes, if the gross receipts (excluding reimbursements for expenses) from the services are more than $400 a day or $5,000 for the tax year. Vita tax 2014 Directors' fees received by residents of Jamaica for services performed in the United States as members of boards of directors of U. Vita tax 2014 S. Vita tax 2014 corporations are exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the fees (excluding reimbursed expenses) are not more than $400 per day for each day the directors are present in the United States to perform the services. Vita tax 2014 Japan Income that residents of Japan receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (business profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Vita tax 2014 Income that residents of Japan receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 The exemption does not apply to directors' fees and similar payments received by a resident of Japan for services performed as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 The exemption does not apply to a resident of Japan who performs services as an employee aboard a ship or an aircraft operated in international traffic by a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Japan who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Kazakhstan Income that residents of Kazakhstan receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if: The residents are in the United States for no more than 183 days in any consecutive 12-month period, and The income is not attributable to a fixed base in the United States which is regularly available to the residents. Vita tax 2014 If the residents have a fixed base available, they are taxed only on the income attributable to the fixed base. Vita tax 2014 Income that residents of Kazakhstan receive for employment in the United States (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following three requirements are met. Vita tax 2014 The resident is in the United States for no more than 183 days in any 12-month period. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 Income derived by a resident of Kazakhstan from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of Kazakhstan as a member of the board of directors or similar body of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Korea, South Income that residents of South Korea receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the residents: Are in the United States for no more than 182 days during the tax year, Earn income for those services that is not more than $3,000 during the tax year, and Do not maintain a fixed base in the United States for more than 182 days during the tax year. Vita tax 2014 If they maintain a fixed base in the United States for more than 182 days, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Korea receive for labor or personal services performed in the United States as employees (dependent personal services), including pay for services performed as an officer of a corporation, is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the residents meet four requirements. Vita tax 2014 They are in the United States for no more than 182 days during the tax year. Vita tax 2014 They are employees of a resident of Korea or of a permanent establishment maintained in Korea. Vita tax 2014 Their compensation is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 Their income for those services is not more than $3,000. Vita tax 2014 Pay received by employees who are members of the regular complement of a ship or aircraft operated by a resident of Korea in international traffic is exempt. Vita tax 2014 Latvia Income that residents of Latvia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Vita tax 2014 Income that residents of Latvia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following requirements are met. Vita tax 2014 The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. Vita tax 2014 S. Vita tax 2014 enterprise. Vita tax 2014 The exemptions do not apply to directors' fees and similar payments received by a resident of Latvia as a member of the board of directors or similar body of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The exemptions do not apply to income residents of Latvia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. Vita tax 2014 Regardless of these limits, income of Latvian entertainers or athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if their visit to the United States is wholly or mainly supported by public funds of Latvia, its political subdivisions, or local authorities. Vita tax 2014 Lithuania Income that residents of Lithuania receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Vita tax 2014 Income that residents of Lithuania receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following requirements are met. Vita tax 2014 The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. Vita tax 2014 S. Vita tax 2014 enterprise. Vita tax 2014 The exemptions do not apply to directors' fees and similar payments received by a resident of Lithuania as a member of the board of directors or similar body of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The exemptions do not apply to income residents of Lithuania receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. Vita tax 2014 Regardless of these limits, income of Lithuanian entertainers or athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if their visit to the United States is wholly or mainly supported by public funds of Lithuania, its political subdivisions, or local authorities. Vita tax 2014 Luxembourg Income that residents of Luxembourg receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Vita tax 2014 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Vita tax 2014 Income that residents of Luxembourg receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Vita tax 2014 The exemption does not apply to pay received for employment exercised continuously or predominantly aboard a ship or aircraft operated in international traffic by a U. Vita tax 2014 S. Vita tax 2014 enterprise. Vita tax 2014 The exemptions do not apply to directors' fees and similar payments received by a resident of Luxembourg for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 The exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Luxembourg who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Vita tax 2014 Malta Income that residents of Malta receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. Vita tax 2014 Under that provision, business profits are exempt from U. Vita tax 2014 S. Vita tax 2014 income tax unless the individual has a permanent establishment in the United States. Vita tax 2014 If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Vita tax 2014 Income that residents of Malta receive for services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet the following requirements. Vita tax 2014 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Vita tax 2014 Their income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 The exemption does not apply to directors' fees and similar payments received by a resident of Malta for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. Vita tax 2014 Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Malta who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Vita tax 2014 S. Vita tax 2014 tax. Vita tax 2014 Income received by a resident of Malta for employment aboard a ship or an aircraft operated in international traffic is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the individual is a member of the regular complement of the ship or aircraft. Vita tax 2014 Mexico Income that residents of Mexico receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 182 days in a 12-month period, and Do not have a fixed base that they regularly use for performing the services. Vita tax 2014 If they have a fixed base available, they are taxed only on income attributable to the fixed base. Vita tax 2014 Income that residents of Mexico receive for employment in the United States (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if the following three requirements are met. Vita tax 2014 The resident is present in the United States for no more than 183 days in a 12-month period. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Vita tax 2014 The income is not borne by a permanent establishment or fixed base that the employer has in the United States. Vita tax 2014 These exemptions do not apply to directors' fees and similar payments received by a resident of Mexico for services performed outside Mexico as a director or overseer of a company that is a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 These exemptions do not apply to income residents of Mexico receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if the income, including reimbursed expenses, is more than $3,000 during the tax year for their entertainment activities in the United States. Vita tax 2014 This includes income from activities performed in the United States relating to the entertainer or athlete's reputation, such as endorsements of commercial products. Vita tax 2014 Regardless of this limit, the income of Mexican entertainers and athletes is exempt from U. Vita tax 2014 S. Vita tax 2014 tax if their visit to the United States is substantially supported by public funds of Mexico, its political subdivisions, or local authorities. Vita tax 2014 Morocco Income that residents of Morocco receive for performing personal services as independent contractors or as self-employed persons (independent personal services) in the United States during the tax year is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents: Are in the United States for no more than 182 days during the tax year, Do not maintain a fixed base in the United States for more than 89 days during the tax year, and Earn total income for those services that is not more than $5,000. Vita tax 2014 If they have a fixed base in the United States for more than 89 days, they are taxed only on the income attributable to the fixed base. Vita tax 2014 Income that residents of Morocco receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the residents meet three requirements. Vita tax 2014 They are in the United States for less than 183 days during the tax year. Vita tax 2014 They are employees of a resident of Morocco or of a permanent establishment of a resident of a country other than Morocco if the permanent establishment is located in Morocco. Vita tax 2014 Their income is not borne by a permanent establishment that the employer has in the United States. Vita tax 2014 Compensation received for services performed by a member of the board of directors of a corporation does not qualify for this exemption. Vita tax 2014 Income received by an individual for performing labor or personal services as an employee aboard a ship or an aircraft operated in international traffic by a Moroccan resident is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the individual is a member of the regular complement of the ship or aircraft. Vita tax 2014 These exemptions do not apply to income received for services performed in the United States by professional entertainers, including theater, film, radio, and television performers, musicians, and athletes, unless the services are performed by, or for the account of, a Moroccan nonprofit organization. Vita tax 2014 Netherlands Income that residents of the Netherlands receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the income is not attributable to a fixed base in the United States that is regularly available for performing the services. Vita tax 2014 Income that residents of the Netherlands receive for employment in the United States (dependent personal services) is exempt from U. Vita tax 2014 S. Vita tax 2014 income tax if the following three requirements are met. Vita tax 2014 The resident is in the United States for no more than 183 days during the tax year. Vita tax 2014 The income is paid by, or on behalf of, an employer who is not a U. Vita tax 2014 S. Vita tax 2014 resident. Vita tax 2014 The income is not borne by a permanent establishment or fixed base the employer has in the United States. Vita tax 2014 Income received by a Netherlands resident for employment as a member of the regular complement of a ship or