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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Www.taxact.com

Turbotax 2011 SignIrs Forms 1040 EzHttps Efile State Tax FreeHow To Do State Taxes For FreeIrs Forms For 2012Free Electronic State Tax Filing1040ez TaxFederal Tax AmendmentForm 1040-ez 2013Get Pin Number 2011 TaxesPrint Free 1040ez Tax Form1040ez On LineFree File Taxes 2011Irs Form 1040ez FillableFile 2011 Taxes In 2013 FreeFiling Amended ReturnState Taxes Online For FreeAmend 2011 Tax Return FormFree State Income Tax Preparation2012 Income Tax FormsWhere To Mail State TaxesFree TaxactFree Tax ServiceIrs Gov Freefile State TaxesFree Tax Act 20122012 Online Tax ReturnAmendmentWhere Can I File My State Taxes For Free1040ez InstructionsVita Tax LocationsH&r Free FederalFree E File 20102012 State Tax FormsIrs Forms 1040ez 20111040vIrs Gov FreefileFree Tax FormIncome State Tax FormsIrs Amendment Form1040 Ez Online Filing

Www.taxact.com

Www. Www.taxact.com taxact. Www.taxact.com com Publication 929 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics This image is too large to be displayed in the current screen. Www.taxact.com Please click the link to view the image. Www.taxact.com Form 1040A, page 1, for Joshua A. Www.taxact.com Blake This image is too large to be displayed in the current screen. Www.taxact.com Please click the link to view the image. Www.taxact.com Form 1040A, page 2, for Joshua A. Www.taxact.com Blake This image is too large to be displayed in the current screen. Www.taxact.com Please click the link to view the image. Www.taxact.com Form 8615 for Joshua A. Www.taxact.com Blake Filled-in Qualified Dividends and Capital Gain Tax Worksheet #1 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. Www.taxact.com Enter the amount from Form 1040A, line 27 1. Www.taxact.com 48,800*       2. Www.taxact.com Enter the amount from Form 1040A, line 9b 2. Www.taxact.com 300*           3. Www.taxact.com Enter the amount from Form 1040A, line 10 3. Www.taxact.com 200*           4. Www.taxact.com Add lines 2 and 3 4. Www.taxact.com 500       5. Www.taxact.com Subtract line 4 from line 1. Www.taxact.com If zero or less, enter -0- 5. Www.taxact.com 48,300       6. Www.taxact.com Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying widow(er),   or 6. Www.taxact.com 48,800*         $48,600 if head of household. Www.taxact.com                   7. Www.taxact.com Enter the smaller of line 5 or line 6 7. Www.taxact.com 48,300       8. Www.taxact.com Subtract line 7 from line 6. Www.taxact.com This amount is taxed at 0% 8. Www.taxact.com   500       9. Www.taxact.com Enter the smaller of line 1 or line 4 9. Www.taxact.com 500       10. Www.taxact.com Enter the amount from line 8 10. Www.taxact.com   500       11. Www.taxact.com Subtract line 10 from line 9 11. Www.taxact.com  -0-       12. Www.taxact.com Multiply line 11 by 15% (. Www.taxact.com 15) 12. Www.taxact.com -0-   13. Www.taxact.com Use the Tax Table to figure the tax on the amount on line 5. Www.taxact.com Enter the tax here 13. Www.taxact.com 6,356   14. Www.taxact.com Add lines 12 and 13 14. Www.taxact.com 6,356   15. Www.taxact.com Use the Tax Table to figure the tax on the amount on line 1. Www.taxact.com Enter the tax here 15. Www.taxact.com 6,431   16. Www.taxact.com Tax on all taxable income. Www.taxact.com Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. Www.taxact.com 6,356       *See the instructions under Using the Qualified Dividends and Capital Gain Tax Worksheet for line 9 tax in the Form 8615 instructions. Www.taxact.com Filled-in Qualified Dividends and Capital Gain Tax Worksheet #2 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. Www.taxact.com Enter the amount from Form 1040A, line 27 1. Www.taxact.com 1,650*       2. Www.taxact.com Enter the amount from Form 1040A, line 9b 2. Www.taxact.com 750*           3. Www.taxact.com Enter the amount from Form 1040A, line 10 3. Www.taxact.com 500*           4. Www.taxact.com Add lines 2 and 3 4. Www.taxact.com 1,250       5. Www.taxact.com Subtract line 4 from line 1. Www.taxact.com If zero or less, enter -0- 5. Www.taxact.com  400       6. Www.taxact.com Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying   widow(er), or 6. Www.taxact.com 1,650*         $48,600 if head of household. Www.taxact.com                   7. Www.taxact.com Enter the smaller of line 5 or line 6 7. Www.taxact.com   400       8. Www.taxact.com Subtract line 7 from line 6. Www.taxact.com This amount is taxed at 0% 8. Www.taxact.com 1,250       9. Www.taxact.com Enter the smaller of line 1 or line 4 9. Www.taxact.com 1,250       10. Www.taxact.com Enter the amount from line 8 10. Www.taxact.com 1,250       11. Www.taxact.com Subtract line 10 from line 9 11. Www.taxact.com -0-       12. Www.taxact.com Multiply line 11 by 15% (. Www.taxact.com 15) 12. Www.taxact.com -0-   13. Www.taxact.com Use the Tax Table to figure the tax on the amount on line 5. Www.taxact.com Enter the tax here 13. Www.taxact.com 41*   14. Www.taxact.com Add lines 12 and 13 14. Www.taxact.com 41   15. Www.taxact.com Use the Tax Table to figure the tax on the amount on line 1. Www.taxact.com Enter the tax here 15. Www.taxact.com 166*   16. Www.taxact.com Tax on all taxable income. Www.taxact.com Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. Www.taxact.com 41       *See the instructions under Using the Qualified Dividends and Capital Gain Tax Worksheet for line 15 tax in the Form 8615 instructions. Www.taxact.com Filled-in Qualified Dividends and Capital Gain Tax Worksheet #3 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. Www.taxact.com Enter the amount from Form 1040A, line 27 1. Www.taxact.com 2,450       2. Www.taxact.com Enter the amount from Form 1040A, line 9b 2. Www.taxact.com 1,050           3. Www.taxact.com Enter the amount from Form 1040A, line 10 3. Www.taxact.com 700           4. Www.taxact.com Add lines 2 and 3 4. Www.taxact.com 1,750       5. Www.taxact.com Subtract line 4 from line 1. Www.taxact.com If zero or less, enter -0- 5. Www.taxact.com    700       6. Www.taxact.com Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying   widow(er), or 6. Www.taxact.com 2,450         $48,600 if head of household. Www.taxact.com                   7. Www.taxact.com Enter the smaller of line 5 or line 6 7. Www.taxact.com  700       8. Www.taxact.com Subtract line 7 from line 6. Www.taxact.com This amount is taxed at 0% 8. Www.taxact.com 1,750       9. Www.taxact.com Enter the smaller of line 1 or line 4 9. Www.taxact.com 1,750       10. Www.taxact.com Enter the amount from line 8 10. Www.taxact.com 1,750       11. Www.taxact.com Subtract line 10 from line 9 11. Www.taxact.com -0-       12. Www.taxact.com Multiply line 11 by 15% (. Www.taxact.com 15) 12. Www.taxact.com -0-   13. Www.taxact.com Use the Tax Table to figure the tax on the amount on line 5. Www.taxact.com Enter the tax here 13. Www.taxact.com  71   14. Www.taxact.com Add lines 12 and 13 14. Www.taxact.com  71   15. Www.taxact.com Use the Tax Table to figure the tax on the amount on line 1. Www.taxact.com Enter the tax here 15. Www.taxact.com 246   16. Www.taxact.com Tax on all taxable income. Www.taxact.com Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. Www.taxact.com  71         How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Www.taxact.com Free help with your tax return. Www.taxact.com   You can get free help preparing your return nationwide from IRS-certified volunteers. Www.taxact.com The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Www.taxact.com The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Www.taxact.com Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Www.taxact.com In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Www.taxact.com To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Www.taxact.com gov, download the IRS2Go app, or call 1-800-906-9887. Www.taxact.com   As part of the TCE program, AARP offers the Tax-Aide counseling program. Www.taxact.com To find the nearest AARP Tax-Aide site, visit AARP's website at www. Www.taxact.com aarp. Www.taxact.com org/money/taxaide or call 1-888-227-7669. Www.taxact.com For more information on these programs, go to IRS. Www.taxact.com gov and enter “VITA” in the search box. Www.taxact.com Internet. Www.taxact.com    IRS. Www.taxact.com gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Www.taxact.com Download the free IRS2Go app from the iTunes app store or from Google Play. Www.taxact.com Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Www.taxact.com Check the status of your 2013 refund with the Where's My Refund? application on IRS. Www.taxact.com gov or download the IRS2Go app and select the Refund Status option. Www.taxact.com The IRS issues more than 9 out of 10 refunds in less than 21 days. Www.taxact.com Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Www.taxact.com You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Www.taxact.com The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Www.taxact.com Use the Interactive Tax Assistant (ITA) to research your tax questions. Www.taxact.com No need to wait on the phone or stand in line. Www.taxact.com The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Www.taxact.com When you reach the response screen, you can print the entire interview and the final response for your records. Www.taxact.com New subject areas are added on a regular basis. Www.taxact.com  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Www.taxact.com gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Www.taxact.com You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Www.taxact.com The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Www.taxact.com When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Www.taxact.com Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Www.taxact.com You can also ask the IRS to mail a return or an account transcript to you. Www.taxact.com Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Www.taxact.com gov or by calling 1-800-908-9946. Www.taxact.com Tax return and tax account transcripts are generally available for the current year and the past three years. Www.taxact.com Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Www.taxact.com Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Www.taxact.com If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Www.taxact.com Check the status of your amended return using Where's My Amended Return? Go to IRS. Www.taxact.com gov and enter Where's My Amended Return? in the search box. Www.taxact.com You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Www.taxact.com It can take up to 3 weeks from the date you mailed it to show up in our system. Www.taxact.com Make a payment using one of several safe and convenient electronic payment options available on IRS. Www.taxact.com gov. Www.taxact.com Select the Payment tab on the front page of IRS. Www.taxact.com gov for more information. Www.taxact.com Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Www.taxact.com Figure your income tax withholding with the IRS Withholding Calculator on IRS. Www.taxact.com gov. Www.taxact.com Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Www.taxact.com Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Www.taxact.com gov. Www.taxact.com Request an Electronic Filing PIN by going to IRS. Www.taxact.com gov and entering Electronic Filing PIN in the search box. Www.taxact.com Download forms, instructions and publications, including accessible versions for people with disabilities. Www.taxact.com Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Www.taxact.com gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Www.taxact.com An employee can answer questions about your tax account or help you set up a payment plan. Www.taxact.com Before you visit, check the Office Locator on IRS. Www.taxact.com gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Www.taxact.com If you have a special need, such as a disability, you can request an appointment. Www.taxact.com Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Www.taxact.com Apply for an Employer Identification Number (EIN). Www.taxact.com Go to IRS. Www.taxact.com gov and enter Apply for an EIN in the search box. Www.taxact.com Read the Internal Revenue Code, regulations, or other official guidance. Www.taxact.com Read Internal Revenue Bulletins. Www.taxact.com Sign up to receive local and national tax news and more by email. Www.taxact.com Just click on “subscriptions” above the search box on IRS. Www.taxact.com gov and choose from a variety of options. Www.taxact.com    Phone. Www.taxact.com You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Www.taxact.com Download the free IRS2Go app from the iTunes app store or from Google Play. Www.taxact.com Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Www.taxact.com gov, or download the IRS2Go app. Www.taxact.com Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Www.taxact.com The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Www.taxact.com Most VITA and TCE sites offer free electronic filing. Www.taxact.com Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Www.taxact.com Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Www.taxact.com Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Www.taxact.com If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Www.taxact.com The IRS issues more than 9 out of 10 refunds in less than 21 days. Www.taxact.com Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Www.taxact.com Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Www.taxact.com The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Www.taxact.com Note, the above information is for our automated hotline. Www.taxact.com Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Www.taxact.com Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Www.taxact.com You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Www.taxact.com It can take up to 3 weeks from the date you mailed it to show up in our system. Www.taxact.com Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Www.taxact.com You should receive your order within 10 business days. Www.taxact.com Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Www.taxact.com If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Www.taxact.com Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Www.taxact.com The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Www.taxact.com These individuals can also contact the IRS through relay services such as the Federal Relay Service. Www.taxact.com    Walk-in. Www.taxact.com You can find a selection of forms, publications and services — in-person. Www.taxact.com Products. Www.taxact.com You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Www.taxact.com Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Www.taxact.com Services. Www.taxact.com You can walk in to your local TAC for face-to-face tax help. Www.taxact.com An employee can answer questions about your tax account or help you set up a payment plan. Www.taxact.com Before visiting, use the Office Locator tool on IRS. Www.taxact.com gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Www.taxact.com    Mail. Www.taxact.com You can send your order for forms, instructions, and publications to the address below. Www.taxact.com You should receive a response within 10 business days after your request is received. Www.taxact.com Internal Revenue Service 1201 N. Www.taxact.com Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Www.taxact.com The Taxpayer Advocate Service (TAS) is your voice at the IRS. Www.taxact.com Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Www.taxact.com   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Www.taxact.com We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Www.taxact.com You face (or your business is facing) an immediate threat of adverse action. Www.taxact.com You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Www.taxact.com   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Www.taxact.com Here's why we can help: TAS is an independent organization within the IRS. Www.taxact.com Our advocates know how to work with the IRS. Www.taxact.com Our services are free and tailored to meet your needs. Www.taxact.com We have offices in every state, the District of Columbia, and Puerto Rico. Www.taxact.com   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Www.taxact.com   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Www.taxact.com If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Www.taxact.com Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Www.taxact.com Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Www.taxact.com Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Www.taxact.com Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

TEB Newsletters

The freely available Adobe Acrobat Reader software is required to view, print, and search the items below.


TEB State Newsletter - January 2012
This is the inaugural edition of a newsletter specifically designed to meet the needs of state officials responsible for overseeing the issuance of tax-advantaged bonds and ongoing compliance with applicable federal tax rules. This newsletter is a direct result of the State Government Communication land Outreach project of the IRS office of Tax Exempt Bonds.

TEB State Newsletter - April 2013
Semi-annual newsletter to assist in meeting the needs of state officials responsible for overseeing the issuance of tax-advantaged bonds and ongoing compliance with applicable federal tax rules. This newsletter also draws attention to key program developments and new educational resources released since the last issue.

TEB State Newsletter - January 2014
Our January newsletter starts with a message from our new Director of Tax Exempt Bonds, Rebecca Harrigal. This newsletter also provides overviews of our recent phone forums and previews of upcoming phone forums; highlights our new Publication 5091, Voluntary Compliance for Tax-Exempt and Tax-Credit Bonds and the Advisory Committee on Tax Exempt and Government Entities' Annual Report; and an update on the effects of sequestration on tax-advantaged bonds.


 

Page Last Reviewed or Updated: 09-Jan-2014

The Www.taxact.com

Www. Www.taxact.com taxact. Www.taxact.com com 4. Www.taxact.com   Filing U. Www.taxact.com S. Www.taxact.com Tax Returns Table of Contents Who Must FileFiling Requirement if Possession Income Is Excluded When To FileExtension of Time To File Where To File Special Rules for Completing Your U. Www.taxact.com S. Www.taxact.com Tax ReturnU. Www.taxact.com S. Www.taxact.com Armed Forces. Www.taxact.com Deductions if Possession Income Is Excluded Foreign Tax Credit if Possession Income Is Excluded Self-Employment Tax Additional Medicare Tax Net Investment Income Tax Paying Your TaxesEstimated Tax Double TaxationCompetent Authority Assistance The information in chapter 3 will tell you if a U. Www.taxact.com S. Www.taxact.com income tax return is required for your situation. Www.taxact.com If a U. Www.taxact.com S. Www.taxact.com return is required, your next step is to see if you meet the filing requirements. Www.taxact.com If you do meet the filing requirements, the information presented in this chapter will help you understand the special procedures involved. Www.taxact.com This chapter discusses: Filing requirements, When to file your return, Where to send your return, How to adjust your deductions and credits if you are excluding income from American Samoa or Puerto Rico, How to make estimated tax payments and pay self-employment tax, and How to request assistance in resolving instances of double taxation. Www.taxact.com Who Must File If you are not required to file a possession tax return that includes your worldwide income, you must generally file a U. Www.taxact.com S. Www.taxact.com income tax return if your gross income is at least the amount shown in Table 4-1, later, for your filing status and age. Www.taxact.com If you were a bona fide resident of American Samoa or Puerto Rico and are able to exclude your possession income from your U. Www.taxact.com S. Www.taxact.com tax return, your filing requirement may be less than the amount in Table 4-1. Www.taxact.com For details, see the information under Filing Requirement if Possession Income Is Excluded , later. Www.taxact.com Some individuals (such as those who can be claimed as a dependent on another person's return or who owe certain taxes, such as self-employment tax) must file a tax return even though the gross income is less than the amount shown in Table 4-1 for their filing status and age. Www.taxact.com For more information, see the Form 1040 instructions. Www.taxact.com Filing Requirement if Possession Income Is Excluded If you were a bona fide resident of American Samoa or Puerto Rico and qualify to exclude possession income on your U. Www.taxact.com S. Www.taxact.com tax return, you must determine your adjusted filing requirement. Www.taxact.com Generally, your filing requirement is based on the total of your (and your spouse's if filing a joint return) personal exemption(s) plus your standard deduction. Www.taxact.com Personal exemption. Www.taxact.com   When figuring your filing requirement, your personal exemption is allowed in full. Www.taxact.com Do not reduce it for this purpose. Www.taxact.com Do not include exemptions for your dependents. Www.taxact.com Allowable standard deduction. Www.taxact.com   Unless your filing status is married filing separately, the minimum income level at which you must file a return is based, in part, on the standard deduction for your filing status and age. Www.taxact.com Because the standard deduction applies to all types of income, it must be divided between your excluded income and income from other sources. Www.taxact.com Multiply the regular standard deduction for your filing status and age (this is zero if you are married filing a separate return; all others, see Form 1040 instructions) by the following fraction:      Gross income subject to U. Www.taxact.com S. Www.taxact.com income tax     Gross income from all sources (including excluded possession income)   Example. Www.taxact.com Barbara Spruce, a U. Www.taxact.com S. Www.taxact.com citizen, is single, under 65, and a bona fide resident of American Samoa. Www.taxact.com During 2013, she received $20,000 of income from American Samoa sources (qualifies for exclusion) and $8,000 of income from sources outside the possession (subject to U. Www.taxact.com S. Www.taxact.com income tax). Www.taxact.com Her allowable standard deduction for 2013 is figured as follows:   $8,000 $28,000 × $6,100 (regular standard deduction) = $1,743   Adjusted filing requirement. Www.taxact.com   Figure your adjusted filing requirement by adding the amount of your allowable standard deduction to the amount of your personal exemption. Www.taxact.com You must file a U. Www.taxact.com S. Www.taxact.com income tax return if your gross income is at least the amount shown on line 3 of the following worksheet. Www.taxact.com    1. Www.taxact.com Enter the allowable standard deduction you figured earlier under Allowable standard deduction . Www.taxact.com If your filing status is married filing separately, enter -0-   2. Www.taxact.com Personal exemption. Www.taxact.com If your filing status is married filing jointly, enter $7,800; if someone can claim you as a dependent, enter -0-; otherwise, enter $3,900   3. Www.taxact.com Add lines 1 and 2. Www.taxact.com You must file a U. Www.taxact.com S. Www.taxact.com income tax return if your gross income from sources outside the relevant possession is at least this amount   Table 4-1. Www.taxact.com 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Www.taxact.com . Www.taxact.com . Www.taxact.com AND at the end of 2013 you were*. Www.taxact.com . Www.taxact.com . Www.taxact.com THEN file a return if your gross income** was at least. Www.taxact.com . Www.taxact.com . Www.taxact.com single under 65 $10,000 65 or older $11,500 married filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married filing separately any age $3,900 head of household under 65 $12,850 65 or older $14,350 qualifying widow(er)  with dependent child under 65 $16,100 65 or older $17,300 * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Www.taxact.com ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). Www.taxact.com Do not include social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013, or (b) one-half of your social security benefits plus your other gross income is more than $25,000 ($32,000 if married filing jointly). Www.taxact.com If (a) or (b) applies, see the instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income. Www.taxact.com *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900 you must file a return regardless of your age. Www.taxact.com Example 1. Www.taxact.com James and Joan Thompson, one over 65, are U. Www.taxact.com S. Www.taxact.com citizens and bona fide residents of Puerto Rico during the entire tax year. Www.taxact.com They file a joint income tax return. Www.taxact.com During 2013, they received $35,000 of income from Puerto Rico sources (qualifies for exclusion) and $6,000 of income from sources outside Puerto Rico (subject to U. Www.taxact.com S. Www.taxact.com income tax). Www.taxact.com Their allowable standard deduction for 2013 is figured as follows:   $6,000 $41,000 × $13,400 ( standard deduction for 65 or older (one spouse) ) = $1,961   The Thompsons do not have to file a U. Www.taxact.com S. Www.taxact.com income tax return because their gross income subject to U. Www.taxact.com S. Www.taxact.com tax ($6,000) is less than their allowable standard deduction plus their personal exemptions ($1,961+ $7,800= $9,761). Www.taxact.com Example 2. Www.taxact.com Barbara Spruce (see Example under Allowable standard deduction, earlier), however, must file a U. Www.taxact.com S. Www.taxact.com income tax return because her gross income subject to U. Www.taxact.com S. Www.taxact.com tax ($8,000) is more than her allowable standard deduction plus her personal exemption ($1,743 + $3,900 = $5,643). Www.taxact.com If you must file a U. Www.taxact.com S. Www.taxact.com income tax return, you may be able to file a paperless return using IRS e-file. Www.taxact.com See your form instructions or visit our website at IRS. Www.taxact.com gov. Www.taxact.com When To File If you file on a calendar year basis, the due date for filing your U. Www.taxact.com S. Www.taxact.com income tax return is April 15 following the end of your tax year. Www.taxact.com If you use a fiscal year (a year ending on the last day of a month other than December), the due date is the 15th day of the 4th month after the end of your fiscal year. Www.taxact.com If any due date falls on a Saturday, Sunday, or legal holiday, your tax return is due on the next business day. Www.taxact.com For your 2013 tax return, the due date is April 15, 2014. Www.taxact.com If you mail your federal tax return, it is considered timely if it bears an official postmark dated on or before the due date, including any extensions. Www.taxact.com If you use a private delivery service designated by the IRS, generally the postmark date is the date the private delivery service records in its database or marks on the mailing label. Www.taxact.com See your form instructions for a list of designated private delivery services. Www.taxact.com Extension of Time To File You can get an extension of time to file your U. Www.taxact.com S. Www.taxact.com income tax return. Www.taxact.com Special rules apply for those living outside the United States. Www.taxact.com Automatic 6-Month Extension If you cannot file your 2013 return by the due date, you can get an automatic 6-month extension of time to file. Www.taxact.com Example. Www.taxact.com If your return must be filed by April 15, 2014, you will have until October 15, 2014, to file. Www.taxact.com Although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. Www.taxact.com If you do not pay the amount due by the regular due date (generally April 15), you will owe interest on any unpaid tax from the original due date to the date you pay the tax. Www.taxact.com You may also be charged penalties (see the Instructions for Form 4868). Www.taxact.com How to get the automatic extension. Www.taxact.com   You can get the automatic 6-month extension if you do one of the following by the due date for filing your return. Www.taxact.com E-file Form 4868 using your personal computer or a tax professional. Www.taxact.com E-file and pay by credit or debit card. Www.taxact.com Your payment must be at least $1. Www.taxact.com You may pay by phone or over the Internet. Www.taxact.com Do not file Form 4868. Www.taxact.com File a paper Form 4868. Www.taxact.com If you are a fiscal year taxpayer, you must file a paper Form 4868. Www.taxact.com See Form 4868 for information on getting an extension using these options. Www.taxact.com When to file. Www.taxact.com   You must request the automatic extension by the due date for your return. Www.taxact.com You can file your return any time before the 6-month extension period ends. Www.taxact.com When you file your return. Www.taxact.com   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Www.taxact.com If you file Form 1040A, U. Www.taxact.com S. Www.taxact.com Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, include that payment in your total payments on Form 1040A, line 41, or Form 1040EZ, line 9. Www.taxact.com Also enter “Form 4868” and the amount paid in the space to the left of the entry space for line 41 or line 9. Www.taxact.com You cannot ask the Internal Revenue Service to figure your tax if you use the extension of time to file. Www.taxact.com Individuals Outside the United States and Puerto Rico You are allowed an automatic 2-month extension (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Www.taxact.com S. Www.taxact.com citizen or resident, and On the due date of your return: You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Www.taxact.com However, if you pay the tax due after the regular due date (generally April 15), interest will be charged from April 15 until the date the tax is paid. Www.taxact.com If you serve in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Www.taxact.com For more information, see Publication 3, Armed Forces' Tax Guide. Www.taxact.com Married taxpayers. Www.taxact.com   If you file a joint return, only one spouse has to qualify for this automatic extension. Www.taxact.com However, if you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Www.taxact.com How to get the extension. Www.taxact.com   To use this special automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Www.taxact.com (See the situations listed under (2), earlier. Www.taxact.com ) Extension beyond 2 months. Www.taxact.com   If you cannot file your 2013 return within the automatic 2-month extension period, you can get an additional 4-month extension, for a total of 6 months. Www.taxact.com File Form 4868 by the end of the automatic extension period (June 16, 2014 for calendar year taxpayers). Www.taxact.com Be sure to check the box on Form 4868, line 8, if appropriate. Www.taxact.com   In addition to this 6-month extension, taxpayers who are out of the country (as defined under (2) earlier) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Www.taxact.com   To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Www.taxact.com Send the letter by the extended due date (October 15 for calendar year taxpayers) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   You will not receive any notification from the IRS unless your request is denied for being untimely. Www.taxact.com Where To File Use the addresses listed below if you have to file Form 1040 with the United States and you are excluding possession income from American Samoa or Puerto Rico. Www.taxact.com If you are not including a check or a money order, send your U. Www.taxact.com S. Www.taxact.com tax return and all attachments to:   Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Www.taxact.com S. Www.taxact.com tax return and all attachments to:  Internal Revenue Service P. Www.taxact.com O. Www.taxact.com Box 1303 Charlotte, NC 28201-1303 USA Also send your U. Www.taxact.com S. Www.taxact.com return to these addresses if you are attaching Form 5074 or Form 8689. Www.taxact.com If you are not in either of the above categories, send your return to the address shown in the Form 1040 instructions for the possession or state in which you reside. Www.taxact.com Special Rules for Completing Your U. Www.taxact.com S. Www.taxact.com Tax Return If you are not excluding possession income from your U. Www.taxact.com S. Www.taxact.com tax return, follow the instructions for the specific forms you file. Www.taxact.com However, you may not qualify to claim the earned income credit (EIC). Www.taxact.com Earned income credit. Www.taxact.com   Even if you maintain a household in one of the possessions discussed in this publication that is your main home and the home of your qualifying child, you cannot claim the earned income credit on your U. Www.taxact.com S. Www.taxact.com tax return. Www.taxact.com This credit is available only if you maintain the household in the United States or you are serving on extended active duty in the U. Www.taxact.com S. Www.taxact.com Armed Forces. Www.taxact.com U. Www.taxact.com S. Www.taxact.com Armed Forces. Www.taxact.com   U. Www.taxact.com S. Www.taxact.com military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Www.taxact.com Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Www.taxact.com Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. Www.taxact.com Income from American Samoa or Puerto Rico excluded. Www.taxact.com   You will not be allowed to take deductions and credits that apply to the excluded income. Www.taxact.com The additional information you need follows. Www.taxact.com Deductions if Possession Income Is Excluded Deductions that specifically apply to your excluded possession income, such as employee business expenses, are not allowable on your U. Www.taxact.com S. Www.taxact.com income tax return. Www.taxact.com Deductions that do not specifically apply to any particular type of income must be divided between your excluded income from sources in the relevant possession and income from all other sources to find the part that you can deduct on your U. Www.taxact.com S. Www.taxact.com tax return. Www.taxact.com Examples of such deductions are alimony payments, the standard deduction, and certain itemized deductions (such as medical expenses, charitable contributions, real estate taxes, and mortgage interest on your home). Www.taxact.com Figuring the deduction. Www.taxact.com   To find the part of a deduction that is allowable, multiply the deduction by the following fraction. Www.taxact.com   Gross income subject to U. Www.taxact.com S. Www.taxact.com income tax     Gross income from all sources (including excluded possession income)   Adjustments to Income Your adjusted gross income equals your gross income minus certain deductions (adjustments). Www.taxact.com Moving expense deduction. Www.taxact.com   Generally, expenses of a move to a possession are directly attributable to wages, salaries, and other earned income from that possession. Www.taxact.com Likewise, the expenses of a move back to the United States are generally attributable to U. Www.taxact.com S. Www.taxact.com earned income. Www.taxact.com   If you are claiming expenses for a move to a relevant possession, how and where you will deduct the expenses depends on your status as a bona fide resident and if any of your possession income is excluded on your U. Www.taxact.com S. Www.taxact.com tax return. Www.taxact.com For more information, see Moving expense deduction in chapter 3 under the name of the relevant possession. Www.taxact.com   If you are claiming expenses for a move from a U. Www.taxact.com S. Www.taxact.com possession to the United States, use Form 3903 to figure your deductible expenses and enter the amount on Form 1040, line 26. Www.taxact.com For purposes of deducting moving expenses, the possessions are considered part of the United States. Www.taxact.com See Publication 521, Moving Expenses, for information about what expenses are deductible. Www.taxact.com Self-employment tax deduction. Www.taxact.com   Generally, if you are reporting self-employment income on your U. Www.taxact.com S. Www.taxact.com return, you can include the deductible part of your self-employment tax on Form 1040, line 27. Www.taxact.com This is an income tax deduction only; it is not a deduction in figuring net earnings from self-employment (for self-employment tax). Www.taxact.com   However, if you are a bona fide resident of American Samoa or Puerto Rico and you exclude all of your self-employment income from gross income, you cannot take the deduction on Form 1040, line 27, because the deduction is related to excluded income. Www.taxact.com   If only part of your self-employment income is excluded, the part of the deduction that is based on the nonexcluded income is allowed. Www.taxact.com This would happen if, for instance, you have two businesses and only the income from one of them is excludable. Www.taxact.com   For purposes of the deduction only, figure the self-employment tax on the nonexcluded income by multiplying your total self-employment tax (from Schedule SE (Form 1040)), Self-Employment Tax) by the following fraction. Www.taxact.com   Self-employment income subject to U. Www.taxact.com S. Www.taxact.com income tax     Total self-employment income (including excluded possession income)   The result is your self-employment tax on nonexcluded income. Www.taxact.com Include the deductible part of this amount on Form 1040, line 27. Www.taxact.com Individual retirement arrangement (IRA) deduction. Www.taxact.com   Do not take excluded income into account when figuring your deductible IRA contribution. Www.taxact.com Standard Deduction The standard deduction is composed of the regular standard deduction amount and the additional standard deduction for taxpayers who are blind or age 65 or over. Www.taxact.com To find the amount you can claim on Form 1040, line 40, first figure your full standard deduction according to the Instructions for Form 1040. Www.taxact.com Then multiply your full standard deduction by the following fraction. Www.taxact.com   Gross income subject to U. Www.taxact.com S. Www.taxact.com income tax     Gross income from all sources (including excluded possession income)   In the space above line 40, enter “Standard deduction modified due to income excluded under section 931 (if American Samoa) or section 933 (if Puerto Rico). Www.taxact.com ” This calculation may not be the same as the one you used to determine if you need to file a U. Www.taxact.com S. Www.taxact.com tax return. Www.taxact.com Itemized Deductions Most itemized deductions do not apply to a particular type of income. Www.taxact.com However, itemized deductions can be divided into three categories. Www.taxact.com Those that apply specifically to excluded income, such as employee business expenses, are not deductible. Www.taxact.com Those that apply specifically to income subject to U. Www.taxact.com S. Www.taxact.com income tax, which might also be employee business expenses, are fully allowable under the Instructions for Schedule A (Form 1040), Itemized Deductions. Www.taxact.com Those that do not apply to specific income must be allocated between your gross income subject to U. Www.taxact.com S. Www.taxact.com income tax and your total gross income from all sources. Www.taxact.com The example given later shows how to figure the deductible part of each type of expense that is not related to specific income. Www.taxact.com Example. Www.taxact.com In 2013, you and your spouse are both under 65 and U. Www.taxact.com S. Www.taxact.com citizens who are bona fide residents of Puerto Rico during the entire tax year. Www.taxact.com You file a joint income tax return. Www.taxact.com During 2013, you earned $20,000 from Puerto Rican sources (excluded from U. Www.taxact.com S. Www.taxact.com gross income) and your spouse earned $60,000 from the U. Www.taxact.com S. Www.taxact.com Government. Www.taxact.com You have $16,000 of itemized deductions that do not apply to any specific type of income. Www.taxact.com These are medical expenses of $4,000, real estate taxes of $5,000, home mortgage interest of $6,000, and charitable contributions of $1,000 (cash contributions). Www.taxact.com You determine the amount of each deduction that you can claim on your Schedule A (Form 1040), Itemized Deductions, by multiplying the deduction by the fraction shown under Figuring the deduction , earlier under Deductions if Possession Income is Excluded. Www.taxact.com   Medical Expenses   $60,000$80,000 × $4,000 = $3,000  (enter on line 1  of Schedule A)     Real Estate Taxes   $60,000$80,000 × $5,000 = $3,750  (enter on line 6  of Schedule A)     Home Mortgage Interest   $60,000$80,000 × $6,000 = $4,500  (enter on line 10 or 11 of  Schedule A)     Charitable Contributions (cash contributions)   $60,000$80,000 × $1,000 = $750  (enter on line 16 of Schedule A)   Enter on Schedule A (Form 1040) only the allowable portion of each deduction. Www.taxact.com Overall limitation on itemized deductions. Www.taxact.com   If your adjusted gross income (discussed earlier) is over $300,000 if married filing jointly or qualifying widow(er); $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately; see the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040), to figure your itemized deductions. Www.taxact.com Personal Exemptions Personal exemptions are allowed in full even if excluding possession income. Www.taxact.com However, depending upon your adjusted gross income and filing status, the amount you can deduct may be reduced. Www.taxact.com See the Deduction for Exemptions Worksheet—Line 42 in the instructions for Form 1040. Www.taxact.com Foreign Tax Credit if Possession Income Is Excluded If you must report American Samoa or Puerto Rico source income on your U. Www.taxact.com S. Www.taxact.com tax return, you can claim a foreign tax credit for income taxes paid to the possession on that income. Www.taxact.com However, you cannot claim a foreign tax credit for taxes paid on possession income that is excluded on your U. Www.taxact.com S. Www.taxact.com tax return. Www.taxact.com The foreign tax credit is generally figured on Form 1116. Www.taxact.com If you have income, such as U. Www.taxact.com S. Www.taxact.com Government wages, that is not excludable, and you also have possession source income that is excludable, you must figure the credit by reducing your foreign taxes paid or accrued by the taxes based on the excluded income. Www.taxact.com You make this reduction for each separate income category. Www.taxact.com To find the amount of this reduction, use the following formula for each income category. Www.taxact.com Excluded income from possession sources less deductible expenses based on that income x Tax paid or accrued to the possession = Reduction in foreign taxes Total income subject to possession tax less deductible expenses based on that income Enter the amount of the reduction on Form 1116, line 12. Www.taxact.com For more information on the foreign tax credit, see Publication 514. Www.taxact.com Example. Www.taxact.com Jason and Lynn Reddy are U. Www.taxact.com S. Www.taxact.com citizens who were bona fide residents of Puerto Rico during all of 2013. Www.taxact.com They file a joint tax return. Www.taxact.com The following table shows their excludable and taxable income for U. Www.taxact.com S. Www.taxact.com federal income tax purposes. Www.taxact.com   Taxable   Excludable Jason's wages from  U. Www.taxact.com S. Www.taxact.com Government $25,000     Lynn's wages from Puerto Rico  corp. Www.taxact.com     $15,000 Dividend from Puerto Rico corp. Www.taxact.com doing business in Puerto Rico     200 Dividend from U. Www.taxact.com S. Www.taxact.com  corp. Www.taxact.com doing business  in U. Www.taxact.com S. Www.taxact.com * 1,000     Totals $26,000   $15,200 * Income from sources outside Puerto Rico is taxable. Www.taxact.com   Jason and Lynn must file 2013 income tax returns with both Puerto Rico and the United States. Www.taxact.com They have gross income of $26,000 for U. Www.taxact.com S. Www.taxact.com tax purposes. Www.taxact.com They paid taxes to Puerto Rico of $4,000 ($3,980 on their wages and $20 on the dividend from the Puerto Rico corporation). Www.taxact.com They figure their foreign tax credit on two Forms 1116, which they must attach to their U. Www.taxact.com S. Www.taxact.com return. Www.taxact.com They fill out one Form 1116 for wages and one Form 1116 for the dividend. Www.taxact.com Jason and Lynn figure the Puerto Rico taxes on excluded income as follows. Www.taxact.com   Wages: ($15,000 ÷ $40,000) × $3,980 = $1,493   Dividend: ($200 ÷ $200) × $20 = $20 They enter $1,493 on Form 1116, line 12, for wages and $20 on the second Form 1116, line 12, for the dividend. Www.taxact.com Self-Employment Tax Self-employment tax includes both social security and Medicare taxes for individuals who are self-employed. Www.taxact.com A U. Www.taxact.com S. Www.taxact.com citizen or resident alien who is self-employed must pay self-employment tax on net self-employment earnings of $400 or more. Www.taxact.com This rule applies whether or not the earnings are excludable from gross income (or whether or not a U. Www.taxact.com S. Www.taxact.com income tax return must otherwise be filed). Www.taxact.com Bona fide residents of the possessions discussed in this publication are considered U. Www.taxact.com S. Www.taxact.com residents for this purpose and are subject to the self-employment tax. Www.taxact.com Forms to file. Www.taxact.com   If you have net self-employment income and are subject to self-employment tax, file one of the following with the United States. Www.taxact.com If you are required to file Form 1040 with the United States, complete Schedule SE (Form 1040) and attach it to your Form 1040. Www.taxact.com If you are not required to file Form 1040 with the United States and you are a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, file Form 1040-SS. Www.taxact.com If you are a resident of Puerto Rico, you can file the Spanish-language Form 1040-PR instead. Www.taxact.com Do not file forms 1040-SS or 1040-PR with Form 1040. Www.taxact.com If you are required to pay Additional Medicare Tax (discussed later) on your self-employment income, attach Form 8959, Additional Medicare Tax to Form 1040, Form 1040-SS, or Form 1040-PR, as applicable. Www.taxact.com Chapter 11 Bankruptcy cases. Www.taxact.com   While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041, U. Www.taxact.com S. Www.taxact.com Income Tax Return for Estates and Trusts) of the bankruptcy estate. Www.taxact.com However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment. Www.taxact.com   Use Schedule SE (Form 1040), Form 1040-SS, or Form 1040-PR, as determined above, to figure your correct amount of self-employment tax. Www.taxact.com   For other reporting requirements, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040. Www.taxact.com Additional Medicare Tax Beginning in 2013, a 0. Www.taxact.com 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er). Www.taxact.com Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Www.taxact.com A self-employment loss should not be considered for purposes of this tax. Www.taxact.com RRTA compensation should be separately compared to the threshold. Www.taxact.com Your employer is responsible for withholding the 0. Www.taxact.com 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. Www.taxact.com You should consider this withholding, if applicable, in determining whether you need to make estimated tax payments. Www.taxact.com There are no special rules for U. Www.taxact.com S. Www.taxact.com citizens and nonresident aliens living abroad for purposes of this provision. Www.taxact.com Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Www.taxact.com For more information, see Form 8959, Additional Medicare Tax, and its instructions or visit www. Www.taxact.com irs. Www.taxact.com gov and enter the following words in the search box: Additional Medicare Tax. Www.taxact.com You cannot include the Additional Medicare Tax as a deductible part of your self-employment tax. Www.taxact.com Net Investment Income Tax Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3. Www.taxact.com 8% tax on the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Www.taxact.com Bona fide residents of Puerto Rico and American Samoa who may have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer’s modified adjusted gross income from non-territory sources exceeds a specified threshold amount. Www.taxact.com The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Www.taxact.com Bona fide residents must take into account any additional tax liability associated with the NIIT when calculating your estimated tax payments. Www.taxact.com Forms to file. Www.taxact.com   If you are a bona fide resident of American Samoa and Puerto Rico and you are required to pay the NIIT, you must file Form 1040 with the United States and attach Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts. Www.taxact.com For more information, see Form 8960 and its instructions. Www.taxact.com Paying Your Taxes You may find that not all of your income tax has been paid through withholding by either the United States or the possession. Www.taxact.com This is often true if you have income that is not subject to withholding, such as self-employment, interest, or rental income. Www.taxact.com In this situation, you may need to make estimated tax payments. Www.taxact.com Estimated Tax If your estimated income tax obligation is to the United States, use the worksheet in the Form 1040-ES package to figure your estimated tax, including self-employment tax. Www.taxact.com Include the Additional Medicare Tax and Net Investment Income Tax if applicable. Www.taxact.com If you are paying by check or money order, use the payment vouchers in the Form 1040-ES package. Www.taxact.com Or, you can make your payments electronically and not have to file any paper forms. Www.taxact.com See the Form 1040-ES instructions for information on making payments. Www.taxact.com Double Taxation Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of the following possessions. Www.taxact.com American Samoa. Www.taxact.com The Commonwealth of Puerto Rico. Www.taxact.com The Commonwealth of the Northern Mariana Islands. Www.taxact.com Guam. Www.taxact.com The U. Www.taxact.com S. Www.taxact.com Virgin Islands. Www.taxact.com These issues usually involve allocations of income, deductions, credits, or allowances between related persons; determinations of residency; and determinations of the source of income and related expenses. Www.taxact.com Competent Authority Assistance The tax coordination agreements between the United States and the possession tax departments contain provisions allowing the competent authorities of the United States and the relevant possession to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions. Www.taxact.com How to make your request. Www.taxact.com   Your request for competent authority assistance must include all the information listed in Revenue Procedure 2006-23, 2006-20 I. Www.taxact.com R. Www.taxact.com B. Www.taxact.com 900 available at www. Www.taxact.com irs. Www.taxact.com gov/pub/irs-irbs/irb06-49. Www.taxact.com pdf. Www.taxact.com    Also, see Notice 2013-78, which provides proposed updates to the procedures for requesting U. Www.taxact.com S. Www.taxact.com competent authority assistance under tax treaties. Www.taxact.com As noted, an update to Revenue Procedure 2006-23 will be published in the future. Www.taxact.com   Your request must be in the form of a letter addressed to the Deputy Commissioner (International) LB&I. Www.taxact.com It must contain a statement that competent authority assistance is requested under the mutual agreement procedure with the possession. Www.taxact.com You (or a person having authority to sign your federal return) must sign and date the request. Www.taxact.com    Send your written request for U. Www.taxact.com S. Www.taxact.com assistance under this procedure to:   Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N. Www.taxact.com W. Www.taxact.com  Routing: M4-365 Washington, DC 20224 (Attention: TAIT) Nonresident aliens generally must present their initial request for assistance to the relevant possession tax agency. Www.taxact.com Credit or Refund In addition to the tax assistance request, if you seek a credit or refund of any overpayment of U. Www.taxact.com S. Www.taxact.com tax paid on the income in question, you should file a claim on Form 1040X, Amended U. Www.taxact.com S. Www.taxact.com Individual Income Tax Return. Www.taxact.com Indicate on the form that a request for assistance under the mutual agreement procedure with the possession has been filed. Www.taxact.com Attach a copy of the request to the form. Www.taxact.com Also, you should take whatever steps must be taken under the possession tax code to prevent the expiration of the statutory period for filing a claim for credit or refund of a possession tax. Www.taxact.com See Revenue Procedure 2006-54 (or its successor), section 9, for complete information. Www.taxact.com Prev  Up  Next   Home   More Online Publications