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Www h&rblock com 19. Www h&rblock com   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. Www h&rblock com This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. Www h&rblock com Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Www h&rblock com However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Www h&rblock com For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Www h&rblock com This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Www h&rblock com Table 19-1 summarizes the features of the student loan interest deduction. Www h&rblock com Table 19-1. Www h&rblock com Student Loan Interest Deduction at a Glance Do not rely on this table alone. Www h&rblock com Refer to the text for more details. Www h&rblock com Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. Www h&rblock com Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. Www h&rblock com Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Www h&rblock com Time limit on deduction You can deduct interest paid during the remaining period of your student loan. Www h&rblock com Phaseout The amount of your deduction depends on your income level. Www h&rblock com Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Www h&rblock com It includes both required and voluntary interest payments. Www h&rblock com Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. Www h&rblock com Loans from the following sources are not qualified student loans. Www h&rblock com A related person. Www h&rblock com A qualified employer plan. Www h&rblock com Exceptions. Www h&rblock com   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. Www h&rblock com An individual can be your dependent even if you are the dependent of another taxpayer. Www h&rblock com An individual can be your dependent even if the individual files a joint return with a spouse. Www h&rblock com An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Www h&rblock com    Reasonable period of time. Www h&rblock com   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Www h&rblock com   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Www h&rblock com The expenses relate to a specific academic period. Www h&rblock com The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Www h&rblock com   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. Www h&rblock com Academic period. Www h&rblock com   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. Www h&rblock com 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. Www h&rblock com Eligible student. Www h&rblock com   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Www h&rblock com Enrolled at least half-time. Www h&rblock com   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. Www h&rblock com   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Www h&rblock com However, the standard may not be lower than any of those established by the U. Www h&rblock com S. Www h&rblock com Department of Education under the Higher Education Act of 1965. Www h&rblock com Related person. Www h&rblock com   You cannot deduct interest on a loan you get from a related person. Www h&rblock com Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Www h&rblock com ), Your lineal descendants (children, grandchildren, etc. Www h&rblock com ), and Certain corporations, partnerships, trusts, and exempt organizations. Www h&rblock com Qualified employer plan. Www h&rblock com   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Www h&rblock com Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Www h&rblock com They include amounts paid for the following items. Www h&rblock com Tuition and fees. Www h&rblock com Room and board. Www h&rblock com Books, supplies, and equipment. Www h&rblock com Other necessary expenses (such as transportation). Www h&rblock com The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Www h&rblock com Eligible educational institution. Www h&rblock com   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. Www h&rblock com S. Www h&rblock com Department of Education. Www h&rblock com It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Www h&rblock com   Certain educational institutions located outside the United States also participate in the U. Www h&rblock com S. Www h&rblock com Department of Education's Federal Student Aid (FSA) programs. Www h&rblock com   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Www h&rblock com   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Www h&rblock com The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Www h&rblock com    The educational institution should be able to tell you if it is an eligible educational institution. Www h&rblock com Adjustments to qualified education expenses. Www h&rblock com   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). Www h&rblock com See chapter 4 of Publication 970 for details. Www h&rblock com Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. Www h&rblock com Loan origination fee. Www h&rblock com   In general, this is a one-time fee charged by the lender when a loan is made. Www h&rblock com To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Www h&rblock com A loan origination fee treated as interest accrues over the life of the loan. Www h&rblock com Capitalized interest. Www h&rblock com    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Www h&rblock com Interest on revolving lines of credit. Www h&rblock com   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Www h&rblock com See Qualified Education Expenses , earlier. Www h&rblock com Interest on refinanced student loans. Www h&rblock com   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Www h&rblock com If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Www h&rblock com Voluntary interest payments. Www h&rblock com   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Www h&rblock com Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. Www h&rblock com Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Www h&rblock com Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Www h&rblock com Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Www h&rblock com For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. Www h&rblock com Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Www h&rblock com Your filing status is any filing status except married filing separately. Www h&rblock com No one else is claiming an exemption for you on his or her tax return. Www h&rblock com You are legally obligated to pay interest on a qualified student loan. Www h&rblock com You paid interest on a qualified student loan. Www h&rblock com Interest paid by others. Www h&rblock com   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Www h&rblock com See chapter 4 of Publication 970 for more information. Www h&rblock com No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). Www h&rblock com How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Www h&rblock com However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Www h&rblock com You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Www h&rblock com For details on figuring your MAGI, see chapter 4 of Publication 970. Www h&rblock com How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. Www h&rblock com However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. Www h&rblock com To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. Www h&rblock com Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Www h&rblock com For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Www h&rblock com Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Www h&rblock com However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Www h&rblock com For information on allocating payments between interest and principal, see chapter 4 of Publication 970. Www h&rblock com To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. Www h&rblock com Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Www h&rblock com You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Www h&rblock com The qualified expenses must be for higher education, as explained later under What Expenses Qualify . Www h&rblock com The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Www h&rblock com Table 19-2 summarizes the features of the tuition and fees deduction. Www h&rblock com You may be able to take a credit for your education expenses instead of a deduction. Www h&rblock com You can choose the one that will give you the lower tax. Www h&rblock com See chapter 35, Education Credits, for details about the credits. Www h&rblock com Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Www h&rblock com Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Www h&rblock com You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. Www h&rblock com You paid the education expenses for an eligible student. Www h&rblock com The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. Www h&rblock com Qualified education expenses are defined under What Expenses Qualify . Www h&rblock com Eligible students are defined later under Who Is an Eligible Student . Www h&rblock com Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Www h&rblock com Your filing status is married filing separately. Www h&rblock com Another person can claim an exemption for you as a dependent on his or her tax return. Www h&rblock com You cannot take the deduction even if the other person does not actually claim that exemption. Www h&rblock com Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Www h&rblock com 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. Www h&rblock com More information on nonresident aliens can be found in Publication 519, U. Www h&rblock com S. Www h&rblock com Tax Guide for Aliens. Www h&rblock com You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. Www h&rblock com However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. Www h&rblock com Table 19-2. Www h&rblock com Tuition and Fees Deduction at a Glance Do not rely on this table alone. Www h&rblock com Refer to the text for more details. Www h&rblock com Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. Www h&rblock com Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. Www h&rblock com For whom must the expenses be paid?   A student enrolled in an eligible educational institution who is either: you, your spouse, or your dependent for whom you claim an exemption. Www h&rblock com What tuition and fees are deductible?   Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Www h&rblock com What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Www h&rblock com Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. Www h&rblock com Payments with borrowed funds. Www h&rblock com   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Www h&rblock com Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Www h&rblock com Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Www h&rblock com Student withdraws from class(es). Www h&rblock com   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Www h&rblock com Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Www h&rblock com Eligible educational institution. Www h&rblock com   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. Www h&rblock com S. Www h&rblock com Department of Education. Www h&rblock com It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Www h&rblock com The educational institution should be able to tell you if it is an eligible educational institution. Www h&rblock com   Certain educational institutions located outside the United States also participate in the U. Www h&rblock com S. Www h&rblock com Department of Education's Federal Student Aid (FSA) programs. Www h&rblock com Academic period. Www h&rblock com    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. Www h&rblock com If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. Www h&rblock com Related expenses. Www h&rblock com   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Www h&rblock com Prepaid expenses. Www h&rblock com   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. Www h&rblock com See Academic period, earlier. Www h&rblock com 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 the tuition and fees deduction for 2013 only if you meet all the other requirements. Www h&rblock com    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. Www h&rblock com No Double Benefit Allowed You cannot do any of the following. Www h&rblock com Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Www h&rblock com Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Www h&rblock com Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Www h&rblock com For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Www h&rblock com See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. Www h&rblock com Deduct qualified education expenses that have been paid with tax-free interest on U. Www h&rblock com S. Www h&rblock com savings bonds (Form 8815). Www h&rblock com See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Www h&rblock com Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. Www h&rblock com See Adjustments to qualified education expenses, later. Www h&rblock com Adjustments to qualified education expenses. Www h&rblock com   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Www h&rblock com The result is the amount of adjusted qualified education expenses for each student. Www h&rblock com Tax-free educational assistance. Www h&rblock com   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. Www h&rblock com See Academic period, earlier. Www h&rblock com   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Www h&rblock com Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. Www h&rblock com However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: 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 Pub. Www h&rblock com 970, chapter 1. Www h&rblock com 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 Pub. Www h&rblock com 970, chapter 1. Www h&rblock com You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. Www h&rblock com For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. Www h&rblock com 970. Www h&rblock com Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. Www h&rblock com 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). Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com Refunds. Www h&rblock com   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. Www h&rblock com See chapter 6 of Pub. Www h&rblock com 970 for more information. Www h&rblock com Some tax-free educational assistance received after 2013 may be treated as a refund. Www h&rblock com See Tax-free educational assistance, earlier. Www h&rblock com Refunds received in 2013. Www h&rblock com    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Www h&rblock com Refunds received after 2013 but before your income tax return is filed. Www h&rblock com   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. Www h&rblock com Refunds received after 2013 and after your income tax return is filed. Www h&rblock com   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. Www h&rblock com See chapter 6 of Pub. Www h&rblock com 970 for more information. Www h&rblock com Coordination with Coverdell education savings accounts and qualified tuition programs. Www h&rblock com    Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Www h&rblock com For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Www h&rblock com Amounts that do not reduce qualified education expenses. Www h&rblock com   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. Www h&rblock com   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. Www h&rblock com 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. Www h&rblock com The use of the money is not restricted. Www h&rblock com 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. Www h&rblock com This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Www h&rblock com Sports, games, hobbies, and noncredit courses. Www h&rblock com   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. Www h&rblock com However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Www h&rblock com Comprehensive or bundled fees. Www h&rblock com   Some eligible educational institutions combine all of their fees for an academic period into one amount. Www h&rblock com 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 above, contact the institution. Www h&rblock com 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. Www h&rblock com See How Do You Figure the Deduction , later, for more information about Form 1098-T. Www h&rblock com Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (defined earlier). Www h&rblock com Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Www h&rblock com Table 19-3 summarizes who can claim the deduction. Www h&rblock com How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Www h&rblock com For details on figuring your MAGI, see chapter 6 of Publication 970. Www h&rblock com How Do You Figure the Deduction Figure the deduction using Form 8917. Www h&rblock com To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. Www h&rblock com 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. Www h&rblock com To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. Www h&rblock com Table 19-3. Www h&rblock com Who Can Claim a Dependent's Expenses Do not rely on this table alone. Www h&rblock com See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. Www h&rblock com IF your dependent is an eligible student and you. Www h&rblock com . Www h&rblock com . Www h&rblock com AND. Www h&rblock com . Www h&rblock com . Www h&rblock com THEN. Www h&rblock com . Www h&rblock com . Www h&rblock com claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Www h&rblock com Your dependent cannot take a deduction. Www h&rblock com claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Www h&rblock com do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Www h&rblock com do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Www h&rblock com Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. Www h&rblock com If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Www h&rblock com However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. Www h&rblock com You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. Www h&rblock com Eligible educator. Www h&rblock com   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. Www h&rblock com Qualified expenses. Www h&rblock com   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Www h&rblock com An ordinary expense is one that is common and accepted in your educational field. Www h&rblock com A necessary expense is one that is helpful and appropriate for your profession as an educator. Www h&rblock com An expense does not have to be required to be considered necessary. Www h&rblock com   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Www h&rblock com   You must reduce your qualified expenses by the following amounts. Www h&rblock com Excludable U. Www h&rblock com S. Www h&rblock com series EE and I savings bond interest from Form 8815. Www h&rblock com See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Www h&rblock com Nontaxable qualified tuition program earnings or distributions. Www h&rblock com See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. Www h&rblock com Nontaxable distribution of earnings from a Coverdell education savings account. Www h&rblock com See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. Www h&rblock com Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. 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Www h&rblock com 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. Www h&rblock com Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U. Www h&rblock com S. Www h&rblock com income taxes on certain items of income they receive from sources within the United States. Www h&rblock com These reduced rates and exemptions vary among countries and specific items of income. Www h&rblock com 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. Www h&rblock com Also see Publication 519. Www h&rblock com Many of the individual states of the United States tax the income of their residents. Www h&rblock com 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. Www h&rblock com Tax treaties reduce the U. Www h&rblock com S. Www h&rblock com taxes of residents of foreign countries. Www h&rblock com With certain exceptions, they do not reduce the U. Www h&rblock com S. Www h&rblock com taxes of U. Www h&rblock com S. Www h&rblock com citizens or residents. Www h&rblock com U. Www h&rblock com S. Www h&rblock com citizens and residents are subject to U. Www h&rblock com S. Www h&rblock com income tax on their worldwide income. Www h&rblock com Treaty provisions generally are reciprocal (apply to both treaty countries); therefore, a U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com Foreign taxing authorities sometimes require certification from the U. Www h&rblock com S. Www h&rblock com Government that an applicant filed an income tax return as a U. Www h&rblock com S. Www h&rblock com citizen or resident, as part of the proof of entitlement to the treaty benefits. Www h&rblock com See Form 8802, Application for United States Residency Certification, to request a certification. Www h&rblock com Disclosure of a treaty-based position that reduces your tax. Www h&rblock com   If you take the position that any U. Www h&rblock com S. Www h&rblock com tax is overruled or otherwise reduced by a U. Www h&rblock com S. Www h&rblock com treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com For more information, see Publication 519 and the Form 8833 instructions. Www h&rblock com   If you fail to file Form 8833, you may have to pay a $1,000 penalty. Www h&rblock com Corporations are subject to a $10,000 penalty for each failure. Www h&rblock com 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. Www h&rblock com Pay for certain personal services performed in the United States. Www h&rblock com Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time. Www h&rblock com Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience. Www h&rblock com Wages, salaries, and pensions paid by a foreign government. Www h&rblock com Personal Services Income Pay for certain personal services performed in the United States is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com For this purpose, the word “day” means a day during any part of which you are physically present in the United States. Www h&rblock com Terms defined. Www h&rblock com   Several terms appear in many of the discussions that follow. Www h&rblock com The exact meanings of the terms are determined by the particular tax treaty under discussion; thus, the meanings vary among treaties. Www h&rblock com The definitions that follow are, therefore, general definitions that may not give the exact meaning intended by a particular treaty. Www h&rblock com   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. Www h&rblock com   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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com Income that residents of Austria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com Income that residents of Bangladesh receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of Bangladesh entertainers is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com If the ship or aircraft is operated by a U. Www h&rblock com S. Www h&rblock com enterprise, the income is subject to U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com If the resident of Bangladesh is a shareholder in a U. Www h&rblock com S. Www h&rblock com corporation, these exemptions do not apply to directors' fees received as a member of the board of directors of the U. Www h&rblock com S. Www h&rblock com corporation. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax at the rate of 15%. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com residents that is not more than $5,000 (there is no dollar limit if the contractors are not U. Www h&rblock com S. Www h&rblock com residents), and Do not have a regular base available in the United States for performing the services. Www h&rblock com 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. Www h&rblock com Income that residents of Barbados receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com tax if the residents meet four requirements. Www h&rblock com They are in the United States for no more than 183 days during the calendar year. Www h&rblock com The income earned in the calendar year in the United States is not more than $5,000. Www h&rblock com Their income is paid by or for an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com The income is not borne by a permanent establishment or regular base of the employer in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Www h&rblock com Income that residents of Belgium receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Www h&rblock com 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. Www h&rblock com Income that residents of Bulgaria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com company. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Www h&rblock com 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. Www h&rblock com Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U. Www h&rblock com S. Www h&rblock com tax if it is not more than $10,000 for the year. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident, and is not borne by a permanent establishment in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident, and The pay is not borne by a permanent establishment or fixed base that the employer has in the United States. Www h&rblock com These exemptions do not apply to directors' fees for service on the board of directors of a U. Www h&rblock com S. Www h&rblock com corporation. Www h&rblock com 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). Www h&rblock com However, income of athletes or public entertainers from China participating in a cultural exchange program agreed upon by the U. Www h&rblock com S. Www h&rblock com and Chinese governments is exempt from U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com Commonwealth of Independent States Income that residents of a C. Www h&rblock com I. Www h&rblock com S. Www h&rblock com member receive for performing personal services in the United States is exempt from U. Www h&rblock com S. Www h&rblock com income tax if those residents are in the United States for no more than 183 days during the tax year. Www h&rblock com 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. Www h&rblock com I. Www h&rblock com S. Www h&rblock com member or a resident of a C. Www h&rblock com I. Www h&rblock com S. Www h&rblock com member is exempt from U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com Directors' fees received by residents of Cyprus for service on the board of directors of a U. Www h&rblock com S. Www h&rblock com corporation are exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed only on income attributable to the fixed base. Www h&rblock com Income that residents of the Czech Republic receive for employment in the United States (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the following three requirements are met. Www h&rblock com The resident is present in the United States for no more than 183 days in any 12-month period. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of Czech entertainers and sportsmen is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com If the ship or aircraft is operated by a U. Www h&rblock com S. Www h&rblock com enterprise, the income is subject to U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com Income that residents of Denmark receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they are in the United States for no more than 89 days during the tax year. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the residents meet four requirements. Www h&rblock com They are in the United States for no more than 89 days during the tax year. Www h&rblock com They are employees of a resident of, or a permanent establishment in, Egypt. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com Their income is subject to Egyptian tax. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed on the income attributable to the fixed base. Www h&rblock com Income that residents of Estonia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the following requirements are met. Www h&rblock com 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. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of Estonian entertainers or athletes is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the residents meet three requirements. Www h&rblock com They are in the United States for no more than 183 days during any 12-month period. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com Their income is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the residents meet three requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of French entertainers or sportsmen is exempt from U. Www h&rblock com S. Www h&rblock com tax if their visit is principally supported by public funds of France. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax if the residents meet three requirements. Www h&rblock com They are in the United States for no more than 183 days during the calendar year. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com The income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com Income of German entertainers or athletes is exempt from U. Www h&rblock com S. Www h&rblock com tax if their visit to the United States is substantially supported by public funds of Germany, its political subdivisions, or local authorities. Www h&rblock com Greece Income that residents of Greece receive for labor or personal services (including practicing liberal and artistic professions) is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com The pay, regardless of amount, is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the residents meet three requirements. Www h&rblock com They are in the United States for no more than 183 days during the tax year. Www h&rblock com Their income is paid by or on behalf of an employer who is not a resident of the United States. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com If the ship or aircraft is operated by a U. Www h&rblock com S. Www h&rblock com enterprise, the pay is subject to U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Www h&rblock com Income that residents of Iceland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com company. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed only on income attributable to the fixed base. Www h&rblock com Income that residents of India receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet three requirements. Www h&rblock com They are present in the United States for no more than 183 days during the tax year. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com enterprise. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com Regardless of this limit, the income of Indian entertainers and athletes is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Www h&rblock com Income that residents of Indonesia receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet three requirements. Www h&rblock com They are present in the United States no more than 119 days during any consecutive 12-month period. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com The income is not borne or reimbursed by a permanent establishment the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax if the individual is a member of the regular complement of the ship or aircraft. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of Indonesian entertainers and athletes is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com Income that residents of Ireland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com However, amounts received for attending meetings in Ireland are not subject to U. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they are in the United States for no more than 182 days during the tax year. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the residents meet four requirements. Www h&rblock com They are in the United States for no more than 182 days during the tax year. Www h&rblock com They are employees of a resident of, or a permanent establishment in, Israel. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com Their income is subject to Israeli tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the following requirements are met. Www h&rblock com The residents are in the United States for no more than 183 days during the tax year. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Pay received for employment regularly exercised aboard a ship or aircraft operated by a U. Www h&rblock com S. Www h&rblock com enterprise is subject to U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com contractor. Www h&rblock com 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. Www h&rblock com There is no dollar limit for condition (3) if the contractor is from a country other than the United States. Www h&rblock com Income that residents of Jamaica receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet four requirements. Www h&rblock com They are in the United States for no more than 183 days during the tax year. Www h&rblock com Their income is paid by or for an employer who is not a resident of the United States. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com Their net income received for the services is not more than $5,000 during the tax year. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com If the ship or aircraft is operated by a U. Www h&rblock com S. Www h&rblock com enterprise, the pay is subject to U. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com Directors' fees received by residents of Jamaica for services performed in the United States as members of boards of directors of U. Www h&rblock com S. Www h&rblock com corporations are exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Www h&rblock com Income that residents of Japan receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If the residents have a fixed base available, they are taxed only on the income attributable to the fixed base. Www h&rblock com Income that residents of Kazakhstan receive for employment in the United States (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the following three requirements are met. Www h&rblock com The resident is in the United States for no more than 183 days in any 12-month period. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax if the residents meet four requirements. Www h&rblock com They are in the United States for no more than 182 days during the tax year. Www h&rblock com They are employees of a resident of Korea or of a permanent establishment maintained in Korea. Www h&rblock com Their compensation is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com Their income for those services is not more than $3,000. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Www h&rblock com Income that residents of Latvia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the following requirements are met. Www h&rblock com 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. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com enterprise. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of Latvian entertainers or athletes is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Www h&rblock com Income that residents of Lithuania receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the following requirements are met. Www h&rblock com 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. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com enterprise. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com Regardless of these limits, income of Lithuanian entertainers or athletes is exempt from U. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Www h&rblock com If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Www h&rblock com Income that residents of Luxembourg receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com enterprise. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com Under that provision, business profits are exempt from U. Www h&rblock com S. Www h&rblock com income tax unless the individual has a permanent establishment in the United States. Www h&rblock com If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Www h&rblock com Income that residents of Malta receive for services performed in the United States as employees (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the residents meet the following requirements. Www h&rblock com They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Www h&rblock com Their income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com tax. Www h&rblock com Income received by a resident of Malta for employment aboard a ship or an aircraft operated in international traffic is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the individual is a member of the regular complement of the ship or aircraft. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com If they have a fixed base available, they are taxed only on income attributable to the fixed base. Www h&rblock com Income that residents of Mexico receive for employment in the United States (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com tax if the following three requirements are met. Www h&rblock com The resident is present in the United States for no more than 183 days in a 12-month period. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a resident of the United States. Www h&rblock com The income is not borne by a permanent establishment or fixed base that the employer has in the United States. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com 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. Www h&rblock com This includes income from activities performed in the United States relating to the entertainer or athlete's reputation, such as endorsements of commercial products. Www h&rblock com Regardless of this limit, the income of Mexican entertainers and athletes is exempt from U. Www h&rblock com S. Www h&rblock com tax if their visit to the United States is substantially supported by public funds of Mexico, its political subdivisions, or local authorities. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the residents meet three requirements. Www h&rblock com They are in the United States for less than 183 days during the tax year. Www h&rblock com 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. Www h&rblock com Their income is not borne by a permanent establishment that the employer has in the United States. Www h&rblock com Compensation received for services performed by a member of the board of directors of a corporation does not qualify for this exemption. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the individual is a member of the regular complement of the ship or aircraft. Www h&rblock com 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. Www h&rblock com 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. Www h&rblock com S. Www h&rblock com income tax if the income is not attributable to a fixed base in the United States that is regularly available for performing the services. Www h&rblock com Income that residents of the Netherlands receive for employment in the United States (dependent personal services) is exempt from U. Www h&rblock com S. Www h&rblock com income tax if the following three requirements are met. Www h&rblock com The resident is in the United States for no more than 183 days during the tax year. Www h&rblock com The income is paid by, or on behalf of, an employer who is not a U. Www h&rblock com S. Www h&rblock com resident. Www h&rblock com The income is not borne by a permanent establishment or fixed base the employer has in the United States. Www h&rblock com Income received by a Netherlands resident for employment as a member of the regular complement of a ship or