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1040 online 5. 1040 online   Figuring Your Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Identification NumberF-1 and M-1 visa holders. 1040 online J-1 visa holders. 1040 online Filing StatusResident Aliens Nonresident Aliens Reporting Your Income DeductionsResident Aliens Nonresident Aliens ExemptionsResident Aliens Nonresident Aliens Itemized DeductionsResident Aliens Nonresident Aliens Tax Credits and PaymentsResident Aliens Nonresident Aliens Bona Fide Residents of American Samoa or Puerto Rico Introduction After you have determined your alien status, the source of your income, and if and how that income is taxed in the United States, your next step is to figure your tax. 1040 online The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. 1040 online Resident aliens should get publications, forms, and instructions for U. 1040 online S. 1040 online citizens, because the information for filing returns for resident aliens is generally the same as for U. 1040 online S. 1040 online citizens. 1040 online If you are both a nonresident alien and a resident alien in the same tax year, see chapter 6 for a discussion of dual-status aliens. 1040 online Topics - This chapter discusses: Identification numbers, Filing status, Deductions, Exemptions, Tax credits and payments, and Special rules for bona fide residents of American Samoa and Puerto Rico. 1040 online Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 521 Moving Expenses 526 Charitable Contributions 535 Business Expenses 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) W-7 Application for IRS Individual Taxpayer Identification Number 1040 U. 1040 online S. 1040 online Individual Income Tax Return 1040NR U. 1040 online S. 1040 online Nonresident Alien Income Tax Return 1040NR-EZ U. 1040 online S. 1040 online Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4563 Exclusion of Income for Bona Fide Residents of American Samoa 8959 Additional Medicare Tax See chapter 12 for information about getting these publications and forms. 1040 online Tax Year You must figure your income and file a tax return on the basis of an annual accounting period called a tax year. 1040 online If you have not previously established a fiscal tax year, your tax year is the calendar year. 1040 online A calendar year is 12 consecutive months ending on December 31. 1040 online If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December or a 52–53 week year) and are considered to be a U. 1040 online S. 1040 online resident for any calendar year, you will be treated as a U. 1040 online S. 1040 online resident for any part of your fiscal year that falls within that calendar year. 1040 online Identification Number A taxpayer identification number must be furnished on returns, statements, and other tax-related documents. 1040 online For an individual, this is a social security number (SSN). 1040 online If you do not have and are not eligible to get an SSN, you must apply for an individual taxpayer identification number (ITIN). 1040 online An employer identification number (EIN) is required if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan. 1040 online You must furnish a taxpayer identification number if you are: An alien who has income effectively connected with the conduct of a U. 1040 online S. 1040 online trade or business at any time during the year, An alien who has a U. 1040 online S. 1040 online office or place of business at any time during the year, A nonresident alien spouse treated as a resident, as discussed in chapter 1, or Any other alien who files a tax return, an amended return, or a refund claim (but not information returns). 1040 online Social security number (SSN). 1040 online   Generally, you can get an SSN if you have been lawfully admitted to the United States for permanent residence or under other immigration categories that authorize U. 1040 online S. 1040 online employment. 1040 online   To apply for this number, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration (SSA) office or call the SSA at 1-800-772-1213. 1040 online You can also download Form SS-5 from the SSA's website at www. 1040 online socialsecurity. 1040 online gov/ssnumber/ss5. 1040 online htm. 1040 online You must visit an SSA office in person and submit your Form SS-5 along with original documentation showing your age, identity, immigration status, and authority to work in the United States. 1040 online Generally, you will receive your card about 2 weeks after the SSA has all of the necessary information. 1040 online F-1 and M-1 visa holders. 1040 online    If you are an F-1 or M-1 student, you must also show your Form I-20. 1040 online For more information, see SSA Publication 05-10181, International Students and Social Security Numbers, available online at www. 1040 online socialsecurity. 1040 online gov/pubs/10181. 1040 online html. 1040 online J-1 visa holders. 1040 online   If you are a J-1 exchange visitor, you will also need to show your Form DS-2019. 1040 online For more information, see SSA Publication 05-10107, Foreign Workers and Social Security Numbers, available online at www. 1040 online socialsecurity. 1040 online gov/pubs/10107. 1040 online html. 1040 online Individual taxpayer identification number (ITIN). 1040 online   If you do not have and are not eligible to get an SSN, you must apply for an ITIN. 1040 online For details on how to do so, see Form W-7 and its instructions. 1040 online Allow 6 to 10 weeks for the IRS to notify you of your ITIN. 1040 online If you already have an ITIN, enter it wherever an SSN is required on your tax return. 1040 online   An ITIN is for tax use only. 1040 online It does not entitle you to social security benefits or change your employment or immigration status under U. 1040 online S. 1040 online law. 1040 online   In addition to those aliens who are required to furnish a taxpayer identification number and are not eligible for an SSN, a Form W-7 must be filed for: Alien individuals who are claimed as dependents and are not eligible for an SSN, and Alien spouses who are claimed as exemptions and are not eligible for an SSN. 1040 online Employer identification number (EIN). 1040 online   An individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes. 1040 online To apply for an EIN, file Form SS-4, Application for Employer Identification Number, with the IRS. 1040 online Filing Status The amount of your tax depends on your filing status. 1040 online Your filing status is important in determining whether you can take certain deductions and credits. 1040 online The rules for determining your filing status are different for resident aliens and nonresident aliens. 1040 online Resident Aliens Resident aliens can use the same filing statuses available to U. 1040 online S. 1040 online citizens. 1040 online See your form instructions or Publication 501 for more information on filing status. 1040 online Married filing jointly. 1040 online   Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. 1040 online Qualifying widow(er). 1040 online   If your spouse died in 2011 or 2012, you did not remarry before the end of 2013, and you have a dependent child living with you, you may qualify to file as a qualifying widow(er) and use the joint return tax rates. 1040 online This applies only if you could have filed a joint return with your spouse for the year your spouse died. 1040 online Head of household. 1040 online   You can qualify as head of household if you are unmarried or considered unmarried on the last day of the year and you pay more than half the cost of keeping up a home for you and a qualifying person. 1040 online You must be a resident alien for the entire tax year. 1040 online   You are considered unmarried for this purpose if your spouse was a nonresident alien at any time during the year and you do not make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. 1040 online Note. 1040 online   Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit. 1040 online In that case, you will not be entitled to the credit. 1040 online See Publication 596 for more information. 1040 online Nonresident Aliens If you are a nonresident alien filing Form 1040NR, you may be able to use one of the filing statuses discussed later. 1040 online If you are filing Form 1040NR-EZ, you can only claim “Single nonresident alien” or “Married nonresident alien” as your filing status. 1040 online Married nonresident alien. 1040 online   Married nonresident aliens who are not married to U. 1040 online S. 1040 online citizens or residents generally must use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when determining the tax on income effectively connected with a U. 1040 online S. 1040 online trade or business. 1040 online Exceptions. 1040 online   Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation Worksheet for single individuals. 1040 online However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a married resident of Canada, Mexico, South Korea, or are a married U. 1040 online S. 1040 online national. 1040 online See the instructions for Form 1040NR or Form 1040NR-EZ to see if you qualify. 1040 online U. 1040 online S. 1040 online national is defined later in this section under Qualifying widow(er) . 1040 online   A nonresident alien generally cannot file as married filing jointly. 1040 online However, a nonresident alien who is married to a U. 1040 online S. 1040 online citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. 1040 online For information on these choices, see chapter 1. 1040 online If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately. 1040 online Qualifying widow(er). 1040 online   You may be eligible to file as a qualifying widow(er) and use the joint return tax rates if all of the following conditions apply. 1040 online You were a resident of Canada, Mexico, or South Korea, or a U. 1040 online S. 1040 online national (defined later). 1040 online Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. 1040 online You have a dependent child living with you. 1040 online See the instructions for Form 1040NR for the rules for filing as a qualifying widow(er) with a dependent child. 1040 online   A U. 1040 online S. 1040 online national is an individual who, although not a U. 1040 online S. 1040 online citizen, owes his or her allegiance to the United States. 1040 online U. 1040 online S. 1040 online nationals include American Samoans and Northern Mariana Islanders who chose to become U. 1040 online S. 1040 online nationals instead of U. 1040 online S. 1040 online citizens. 1040 online Head of household. 1040 online   You cannot file as head of household if you are a nonresident alien at any time during the tax year. 1040 online However, if you are married, your spouse can qualify as a head of household if: Your spouse is a resident alien or U. 1040 online S. 1040 online citizen for the entire tax year, You do not choose to be treated as a resident alien, and Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens . 1040 online Note. 1040 online   Even if your spouse is considered unmarried for head of household purposes because you are a nonresident alien, your spouse may still be considered married for purposes of the earned income credit. 1040 online In that case, your spouse will not be entitled to the credit. 1040 online See Publication 596 for more information. 1040 online Estates and trusts. 1040 online   A nonresident alien estate or trust using Form 1040NR must use Tax Rate Schedule W in the Form 1040NR instructions when determining the tax on income effectively connected with a U. 1040 online S. 1040 online trade or business. 1040 online Special rules for aliens from certain U. 1040 online S. 1040 online possessions. 1040 online   A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who is temporarily working in the United States should read Bona Fide Residents of American Samoa or Puerto Rico, at the end of this chapter, for information about special rules. 1040 online Reporting Your Income You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. 1040 online For resident aliens, this includes income from sources both within and outside the United States. 1040 online For nonresident aliens, this includes both income that is effectively connected with a trade or business in the United States (subject to graduated tax rates) and income from U. 1040 online S. 1040 online sources that is not effectively connected (subject to a flat 30% tax rate or lower tax treaty rate). 1040 online Deductions Resident and nonresident aliens can claim similar deductions on their U. 1040 online S. 1040 online tax returns. 1040 online However, nonresident aliens generally can claim only deductions related to income that is effectively connected with their U. 1040 online S. 1040 online trade or business. 1040 online Resident Aliens You can claim the same deductions allowed to U. 1040 online S. 1040 online citizens if you are a resident alien for the entire tax year. 1040 online While the discussion that follows contains some of the same general rules and guidelines that apply to you, it is specifically directed toward nonresident aliens. 1040 online You should get Form 1040 and instructions for more information on how to claim your allowable deductions. 1040 online Nonresident Aliens You can claim deductions to figure your effectively connected taxable income. 1040 online You generally cannot claim deductions related to income that is not connected with your U. 1040 online S. 1040 online business activities. 1040 online Except for personal exemptions, and certain itemized deductions, discussed later, you can claim deductions only to the extent they are connected with your effectively connected income. 1040 online Ordinary and necessary business expenses. 1040 online   You can deduct all ordinary and necessary expenses in the operation of your U. 1040 online S. 1040 online trade or business to the extent they relate to income effectively connected with that trade or business. 1040 online The deduction for travel expenses while in the United States is discussed under Itemized Deductions, later. 1040 online For information about other business expenses, see Publication 535. 1040 online Losses. 1040 online   You can deduct losses resulting from transactions that you entered into for profit and that you were not reimbursed for by insurance, etc. 1040 online to the extent that they relate to income that is effectively connected with a trade or business in the United States. 1040 online Educator expenses. 1040 online   If you were an eligible educator in 2013, you can deduct as an adjustment to income up to $250 in unreimbursed qualified expenses you paid or incurred during 2013 for books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment, and other equipment and materials used in the classroom. 1040 online For more information, see your tax form instructions. 1040 online Individual retirement arrangement (IRA). 1040 online   If you made contributions to a traditional IRA for 2013, you may be able to take an IRA deduction. 1040 online But you must have taxable compensation effectively connected with a U. 1040 online S. 1040 online trade or business to do so. 1040 online A Form 5498 should be sent to you by May 31, 2014, that shows all contributions to your traditional IRA for 2013. 1040 online If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc. 1040 online ) at work or through self-employment, your IRA deduction may be reduced or eliminated. 1040 online But you can still make contributions to a traditional IRA even if you cannot deduct them. 1040 online If you made nondeductible contributions to a traditional IRA for 2013, you must report them on Form 8606, Nondeductible IRAs. 1040 online   For more information, see Publication 590, Individual Retirement Arrangements (IRAs). 1040 online Moving expenses. 1040 online   If you are a nonresident alien temporarily in the United States earning taxable income for performing personal services, you can deduct moving expenses to the United States if you meet both of the following tests. 1040 online You are a full-time employee for at least 39 weeks during the 12 months right after you move, or if you are self-employed, you work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months right after you move. 1040 online Your new job location is at least 50 miles farther (by the shortest commonly traveled route) from your former home than your former job location was. 1040 online If you had no former job location, the new job location must be at least 50 miles from your former home. 1040 online   You cannot deduct the moving expense you have when returning to your home abroad or moving to a foreign job site. 1040 online   Figure your deductible moving expenses to the United States on Form 3903, and deduct them on line 26 of Form 1040NR. 1040 online   For more information on the moving expense deduction, see Publication 521. 1040 online Reimbursements. 1040 online   If your employer reimbursed you for allowable moving expenses under an accountable plan, your employer should have excluded these reimbursements from your income. 1040 online You can only deduct allowable moving expenses that were not reimbursed by your employer or that were reimbursed but the reimbursement was included in your income. 1040 online For more information, see Publication 521. 1040 online Moving expense or travel expense. 1040 online   If you deduct moving expenses to the United States, you cannot also deduct travel expenses (discussed later under Itemized Deductions) while temporarily away from your tax home in a foreign country. 1040 online Moving expenses are based on a change in your principal place of business while travel expenses are based on your temporary absence from your principal place of business. 1040 online Self-employed SEP, SIMPLE, and qualified retirement plans. 1040 online   If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. 1040 online To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U. 1040 online S. 1040 online trade or business. 1040 online   Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. 1040 online Penalty on early withdrawal of savings. 1040 online   You must include in income all effectively connected interest income you receive or that is credited to your account during the year. 1040 online Do not reduce it by any penalty you must pay on an early withdrawal from a time savings account. 1040 online However, if the interest income is effectively connected with your U. 1040 online S. 1040 online trade or business during the year, you can deduct on line 30 of Form 1040NR the amount of the early withdrawal penalty that the banking institution charged. 1040 online Student loan interest expense. 1040 online   If you paid interest on a student loan in 2013, you may be able to deduct up to $2,500 of the interest you paid. 1040 online Generally, you can claim the deduction if all the following requirements are met. 1040 online Your filing status is any filing status except married filing separately. 1040 online Your modified adjusted gross income is less than $75,000. 1040 online No one else is claiming an exemption for you on his or her 2013 tax return. 1040 online You paid interest on a loan taken out only to pay tuition and other qualified higher education expenses for yourself, your spouse, someone who was your dependent when the loan was taken out, or someone you could have claimed as a dependent for the year the loan was taken out except that: The person filed a joint return, The person had gross income that was equal to or more than the exemption amount for that year ($3,900 for 2013), or You could be claimed as a dependent on someone else's return. 1040 online The loan is not from a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. 1040 online The education expenses were paid or incurred within a reasonable period of time before or after the loan was taken out. 1040 online The person for whom the expenses were paid or incurred was an eligible student. 1040 online Use the worksheet in the Form 1040NR or Form 1040NR-EZ instructions to figure the deduction. 1040 online For more information, see Publication 970, Tax Benefits for Education. 1040 online Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040 online S. 1040 online citizens. 1040 online However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040 online S. 1040 online tax return. 1040 online Resident Aliens You can claim personal exemptions and exemptions for dependents according to the dependency rules for U. 1040 online S. 1040 online citizens. 1040 online You can claim an exemption for your spouse on a separate return if your spouse had no gross income for U. 1040 online S. 1040 online tax purposes and was not the dependent of another taxpayer. 1040 online You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States. 1040 online You can claim an exemption for each person who qualifies as a dependent according to the rules for U. 1040 online S. 1040 online citizens. 1040 online The dependent must be a citizen or national (defined earlier) of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begins. 1040 online Get Publication 501 for more information. 1040 online Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. 1040 online See Identification Number, earlier. 1040 online Nonresident Aliens Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption ($3,900 for 2013). 1040 online You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following discussions. 1040 online Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. 1040 online See Identification Number, earlier. 1040 online Residents of Mexico or Canada or U. 1040 online S. 1040 online nationals. 1040 online   If you are a resident of Mexico or Canada or a national of the United States (defined earlier), you can also claim a personal exemption for your spouse if your spouse had no gross income for U. 1040 online S. 1040 online tax purposes and cannot be claimed as the dependent on another U. 1040 online S. 1040 online taxpayer's return. 1040 online In addition, you can claim exemptions for your dependents who meet certain tests. 1040 online Residents of Mexico, Canada, or nationals of the United States must use the same rules as U. 1040 online S. 1040 online citizens to determine who is a dependent and for which dependents exemptions can be claimed. 1040 online See Publication 501 for these rules. 1040 online For purposes of these rules, dependents who are U. 1040 online S. 1040 online nationals meet the citizenship test discussed in Publication 501. 1040 online Residents of South Korea. 1040 online   Nonresident aliens who are residents of South Korea may be able to claim exemptions for a spouse and children. 1040 online The income tax treaty with South Korea imposes two additional requirements on South Korean residents: The spouse and all children claimed must live with the alien in the United States at some time during the tax year, and The additional deduction for the exemptions must be prorated based on the ratio of the alien's U. 1040 online S. 1040 online source gross income effectively connected with a U. 1040 online S. 1040 online trade or business for the tax year to the alien's entire income from all sources during the tax year. 1040 online Example. 1040 online Mr. 1040 online Park, a nonresident alien who is a resident of South Korea, lives temporarily in the United States with his wife and two children. 1040 online During the tax year he receives U. 1040 online S. 1040 online compensation of $18,000. 1040 online He also receives $6,000 of income from sources outside the United States that is not effectively connected with his U. 1040 online S. 1040 online trade or business. 1040 online Thus, his total income for the year is $24,000. 1040 online Mr. 1040 online Park meets all requirements for claiming exemptions for his spouse and two children. 1040 online The additional deduction for 2013 is $8,775 figured as follows: $18,000 $24,000 × $11,700* = $8,775               *3 × $3,900 = $11,700   Students and business apprentices from India. 1040 online   Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty may be able to claim exemptions for their spouse and dependents. 1040 online   You can claim an exemption for your spouse if he or she had no gross income during the year and cannot be claimed as a dependent on another U. 1040 online S. 1040 online taxpayer's return. 1040 online   You can claim exemptions for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 1040 online S. 1040 online citizens. 1040 online See Publication 501 for these rules. 1040 online   List your spouse and dependents on line 7c of Form 1040NR. 1040 online Enter the total on the appropriate line to the right of line 7c. 1040 online Itemized Deductions Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040 online However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040 online S. 1040 online trade or business. 1040 online Resident Aliens You can claim the same itemized deductions as U. 1040 online S. 1040 online citizens, using Schedule A of Form 1040. 1040 online These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. 1040 online If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. 1040 online For further information, see Form 1040 and instructions. 1040 online Nonresident Aliens You can deduct certain itemized deductions if you receive income effectively connected with your U. 1040 online S. 1040 online trade or business. 1040 online These deductions include state and local income taxes, charitable contributions to U. 1040 online S. 1040 online organizations, casualty and theft losses, and miscellaneous deductions. 1040 online Use Schedule A of Form 1040NR to claim itemized deductions. 1040 online If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. 1040 online If you are claiming any other itemized deduction, you must file Form 1040NR. 1040 online Standard deduction. 1040 online   Nonresident aliens cannot claim the standard deduction. 1040 online However, see Students and business apprentices from India , next. 1040 online Students and business apprentices from India. 1040 online   A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. 1040 online You can claim the standard deduction provided you do not claim itemized deductions. 1040 online   Use Worksheet 5-1 to figure your standard deduction. 1040 online If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. 1040 online State and local income taxes. 1040 online   You can deduct state and local income taxes you paid on income that is effectively connected with a trade or business in the United States. 1040 online If you received a refund or rebate in 2013 of taxes you paid in an earlier year, do not reduce your deduction by that amount. 1040 online Instead, you must include the refund or rebate in income if you deducted the taxes in the earlier year and the deduction reduced your tax. 1040 online See Recoveries in Publication 525 for details on how to figure the amount to include in income. 1040 online Charitable contributions. 1040 online   You can deduct your charitable contributions or gifts to qualified organizations subject to certain limits. 1040 online Qualified organizations include organizations that are religious, charitable, educational, scientific, or literary in nature, or that work to prevent cruelty to children or animals. 1040 online Certain organizations that promote national or international amateur sports competition are also qualified organizations. 1040 online Foreign organizations. 1040 online   Contributions made directly to a foreign organization are not deductible. 1040 online However, you can deduct contributions to a U. 1040 online S. 1040 online organization that transfers funds to a charitable foreign organization if the U. 1040 online S. 1040 online organization controls the use of the funds or if the foreign organization is only an administrative arm of the U. 1040 online S. 1040 online organization. 1040 online   For more information about organizations that qualify to receive charitable contributions, see Publication 526, Charitable Contributions. 1040 online Worksheet 5-1. 1040 online 2013 Standard Deduction Worksheet for Students and Business Apprentices From India Caution. 1040 online If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. 1040 online You cannot take the standard deduction even if you were born before January 2, 1949, or are blind. 1040 online 1 Enter the amount shown below for your filing status. 1040 online           Single or married filing separately—$6,100 Qualifying widow(er)—$12,200 1. 1040 online           2 Can you be claimed as a dependent on someone else's U. 1040 online S. 1040 online income tax return?  No. 1040 online Enter the amount from line 1 on line 4. 1040 online Skip line 3 and go to line 5. 1040 online   Yes. 1040 online Go to line 3. 1040 online         3 Is your earned income* more than $650?           Yes. 1040 online Add $350 to your earned income. 1040 online Enter the total. 1040 online           No. 1040 online Enter $1,000 3. 1040 online       4 Enter the smaller of line 1 or line 3 4. 1040 online   5 If born before January 2, 1949, OR blind, enter $1,200 ($1,500 if single). 1040 online If born before January 2, 1949, AND blind, enter $2,400 ($3,000 if single). 1040 online Otherwise, enter -0- 5. 1040 online   6 Add lines 4 and 5. 1040 online Enter the total here and on Form 1040NR, line 38 (or Form 1040NR-EZ, line 11). 1040 online Print “Standard Deduction Allowed Under U. 1040 online S. 1040 online –India Income Tax Treaty” in the space to the left of these lines. 1040 online This is your standard deduction for 2013. 1040 online 6. 1040 online   *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. 1040 online It also includes any amount received as a scholarship that you must include in your income. 1040 online Generally, your earned income is the total of the amount(s) you reported on Form 1040NR, lines 8,12,13, and 19, minus amounts on lines 27 and 31 (or Form 1040NR-EZ, lines 3 and 5, minus any amount on line 8). 1040 online Contributions from which you benefit. 1040 online   If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. 1040 online   If you pay more than the fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. 1040 online For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. 1040 online Cash contributions. 1040 online   You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written record from the charity. 1040 online The written record must include the name of the charity, date of the contribution, and the amount of the contribution. 1040 online   You may deduct a cash contribution of $250 or more only if you have a written statement from the charitable organization showing: The amount of any money contributed, Whether the organization gave you any goods or services in return for your contribution, and A description and estimate of the value of any goods or services described in (2). 1040 online If you received only intangible religious benefits, the organization must state this, but it does not have to describe or value the benefit. 1040 online Noncash contributions. 1040 online   For contributions not made in cash, the records you must keep depend on the amount of your deduction. 1040 online See Publication 526 for details. 1040 online For example, if you make a noncash contribution and the amount of your deduction is more than $500, you must complete and attach to your tax return Form 8283, Noncash Charitable Contributions. 1040 online If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. 1040 online If your total deduction is over $5,000, you also may have to get appraisals of the values of the property. 1040 online If the donated property is valued at more than $5,000, you must obtain a qualified appraisal. 1040 online You generally must attach to your tax return an appraisal of any property if your deduction for the property is more than $500,000. 1040 online See Form 8283 and its instructions for details. 1040 online Contributions of appreciated property. 1040 online   If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. 1040 online However, if you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. 1040 online Your basis in the property is generally what you paid for it. 1040 online If you need more information about basis, get Publication 551, Basis of Assets. 1040 online   Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. 1040 online For information about these rules, see Publication 526. 1040 online Limit. 1040 online   The amount you can deduct in a tax year is limited in the same way it is for a citizen or resident of the United States. 1040 online For a discussion of limits on charitable contributions and other information, get Publication 526. 1040 online Casualty and theft losses. 1040 online   You can deduct your loss from fire, storm, shipwreck, or other casualty, or theft of property even though your property is not connected with a U. 1040 online S. 1040 online trade or business. 1040 online The property can be personal use property or income-producing property not connected with a U. 1040 online S. 1040 online trade or business. 1040 online The property must be located in the United States at the time of the casualty or theft. 1040 online You can deduct theft losses only in the year in which you discover the loss. 1040 online   The amount of the loss is the fair market value of the property immediately before the casualty or theft less its fair market value immediately after the casualty or theft (but not more than its cost or adjusted basis) less any insurance or other reimbursement. 1040 online The fair market value of property immediately after a theft is considered zero, because you no longer have the property. 1040 online   If your property is covered by insurance, you should file a timely insurance claim for reimbursement. 1040 online If you do not, you cannot deduct this loss as a casualty or theft loss. 1040 online   Figure your deductible casualty and theft losses on Form 4684, Casualties and Thefts. 1040 online Losses from personal use property. 1040 online    You cannot deduct the first $100 of each casualty or theft loss to property held for personal use. 1040 online You can deduct only the total of these losses for the year (reduced by the $100 limit) that is more than 10% of your adjusted gross income (line 37, Form 1040NR) for the year. 1040 online Losses from income-producing property. 1040 online   These losses are not subject to the limitations that apply to personal use property. 1040 online Use Section B of Form 4684 to figure your deduction for these losses. 1040 online Job expenses and other miscellaneous deductions. 1040 online   You can deduct job expenses, such as allowable unreimbursed travel expenses (discussed next), and other miscellaneous deductions. 1040 online Generally, the allowable deductions must be related to effectively connected income. 1040 online Deductible expenses include: Union dues, Safety equipment and small tools needed for your job, Dues to professional organizations, Subscriptions to professional journals, Tax return preparation fees, and Casualty and theft losses of property used in performing services as an employee (employee property). 1040 online   Most miscellaneous itemized deductions are deductible only if they are more than 2% of your adjusted gross income (line 37, Form 1040NR). 1040 online For more information on miscellaneous deductions, see the instructions for Form 1040NR. 1040 online Travel expenses. 1040 online   You may be able to deduct your ordinary and necessary travel expenses while you are temporarily performing personal services in the United States. 1040 online Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. 1040 online You must be able to show you were present in the United States on an activity that required your temporary absence from your regular place of work. 1040 online   For example, if you have established a “tax home” through regular employment in a foreign country, and intend to return to similar employment in the same country at the end of your temporary stay in the United States, you can deduct reasonable travel expenses you paid. 1040 online You cannot deduct travel expenses for other members of your family or party. 1040 online Deductible travel expenses. 1040 online   If you qualify, you can deduct your expenses for: Transportation—airfare, local transportation, including train, bus, etc. 1040 online , Lodging—rent paid, utilities (do not include telephone), hotel or motel room expenses, and Meal expenses—actual expenses allowed if you keep records of the amounts, or, if you do not wish to keep detailed records, you are generally allowed a standard meal allowance amount depending on the date and area of your travel. 1040 online You generally can deduct only 50% of unreimbursed meal expenses. 1040 online The standard meal allowance rates for high-cost areas are available at www. 1040 online gsa. 1040 online gov/perdiem. 1040 online The rates for other areas are in Publication 463. 1040 online   Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 7 of Schedule A (Form 1040NR). 1040 online Expenses allocable to U. 1040 online S. 1040 online tax-exempt income. 1040 online   You cannot deduct an expense, or part of an expense, that is allocable to U. 1040 online S. 1040 online tax-exempt income, including income exempt by tax treaty. 1040 online Example. 1040 online Irina Oak, a citizen of Poland, resided in the United States for part of the year to acquire business experience from a U. 1040 online S. 1040 online company. 1040 online During her stay in the United States, she received a salary of $8,000 from her Polish employer. 1040 online She received no other U. 1040 online S. 1040 online source income. 1040 online She spent $3,000 on travel expenses, of which $1,000 were for meals. 1040 online None of these expenses were reimbursed. 1040 online Under the tax treaty with Poland, $5,000 of her salary is exempt from U. 1040 online S. 1040 online income tax. 1040 online In filling out Form 2106-EZ, she must reduce her deductible meal expenses by half ($500). 1040 online She must reduce the remaining $2,500 of travel expenses by 62. 1040 online 5% ($1,563) because 62. 1040 online 5% ($5,000 ÷ $8,000) of her salary is exempt from tax. 1040 online She enters the remaining total of $937 on line 7 of Schedule A (Form 1040NR). 1040 online She completes the remaining lines according to the instructions for Schedule A. 1040 online More information. 1040 online   For more information about deductible expenses, reimbursements, and recordkeeping, get Publication 463. 1040 online Tax Credits and Payments This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and payments for nonresident aliens. 1040 online Resident Aliens Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U. 1040 online S. 1040 online citizens. 1040 online The following items are some of the credits you may be able to claim. 1040 online Foreign tax credit. 1040 online   You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign country on foreign source income. 1040 online You cannot claim a credit for taxes paid or accrued on excluded foreign earned income. 1040 online To claim a credit for income taxes paid or accrued to a foreign country, you generally will file Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), with your Form 1040. 1040 online   For more information, get Publication 514, Foreign Tax Credit for Individuals. 1040 online Child and dependent care credit. 1040 online   You may be able to take this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. 1040 online Generally, you must be able to claim an exemption for your dependent. 1040 online   For more information, get Publication 503, Child and Dependent Care Expenses, and Form 2441, Child and Dependent Care Expenses. 1040 online Credit for the elderly or the disabled. 1040 online   You may qualify for this credit if you are 65 or older or if you retired on permanent and total disability. 1040 online For more information on this credit, get Publication 524, Credit for the Elderly or the Disabled, and Schedule R (Form 1040A or 1040). 1040 online Education credits. 1040 online   You may qualify for these credits if you paid qualified education expenses for yourself, your spouse, or your dependent. 1040 online There are two education credits: the American Opportunity Credit and the lifetime learning credit. 1040 online You cannot claim these credits if you are married filing separately. 1040 online Use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to figure the credit. 1040 online For more information, see Publication 970. 1040 online Retirement savings contributions credit. 1040 online   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. 1040 online You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than: $59,000, if your filing status is married filing jointly, $44,250, if your filing status is head of household, or $29,500, if your filing status is single, married filing separately, or qualifying widow(er). 1040 online Use Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the credit. 1040 online For more information, see Publication 590. 1040 online Child tax credit. 1040 online   You may be able to take this credit if you have a qualifying child. 1040 online   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. 1040 online Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). 1040 online Is a U. 1040 online S. 1040 online citizen, a U. 1040 online S. 1040 online national, or a resident alien. 1040 online Did not provide over half of his or her own support for 2013. 1040 online Lived with you more than half of 2013. 1040 online Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. 1040 online Is claimed as a dependent on your return. 1040 online An adopted child is always treated as your own child. 1040 online An adopted child includes a child lawfully placed with you for legal adoption. 1040 online   See your form instructions for additional details. 1040 online Adoption credit. 1040 online   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. 1040 online This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. 1040 online To claim the adoption credit, file Form 8839, Qualified Adoption Expenses, with your Form 1040. 1040 online Earned income credit. 1040 online   You may qualify for an earned income credit of up to $3,250 if a child lived with you in the United States and your earned income and adjusted gross income were each less than $37,870 ($43,210 if married filing jointly). 1040 online If two children lived with you in the United States and your earned income and adjusted gross income were each less than $43,038 ($48,378 if married filing jointly), your credit could be as much as $5,372. 1040 online If three or more children lived with you in the United States and your earned income and adjusted gross income were each less than $46,227 ($51,567 if married filing jointly), your credit could be as much as $6,044. 1040 online If you do not have a qualifying child and your earned income and adjusted gross income were each less than $14,340 ($19,680 if married filing jointly), your credit could be as much as $487. 1040 online You cannot claim the earned income credit if your filing status is married filing separately. 1040 online    You and your spouse (if filing a joint return) and any qualifying child must have valid SSNs to claim this credit. 1040 online You cannot claim the credit using an ITIN. 1040 online If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. 1040 online An example of a federally funded benefit is Medicaid. 1040 online If a card has this legend and the individual's immigration status has changed so that the individual is now a U. 1040 online S. 1040 online citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. 1040 online Other information. 1040 online   There are other eligibility rules that are not discussed here. 1040 online For more information, get Publication 596, Earned Income Credit. 1040 online Nonresident Aliens You can claim some of the same credits that resident aliens can claim. 1040 online You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income. 1040 online Credits Credits are allowed only if you receive effectively connected income. 1040 online You may be able to claim some of the following credits. 1040 online Foreign tax credit. 1040 online   If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U. 1040 online S. 1040 online possession on that income. 1040 online   If you do not have foreign source income effectively connected with a U. 1040 online S. 1040 online trade or business, you cannot claim credits against your U. 1040 online S. 1040 online tax for taxes paid or accrued to a foreign country or U. 1040 online S. 1040 online possession. 1040 online   You cannot take any credit for taxes imposed by a foreign country or U. 1040 online S. 1040 online possession on your U. 1040 online S. 1040 online source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. 1040 online   If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. 1040 online See Publication 514 for more information. 1040 online Child and dependent care credit. 1040 online   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. 1040 online Generally, you must be able to claim an exemption for your dependent. 1040 online   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. 1040 online S. 1040 online citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). 1040 online   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. 1040 online Earned income generally means wages, salaries, and professional fees for personal services performed. 1040 online   For more information, get Publication 503. 1040 online Education credits. 1040 online   If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040 online However, if you are married and choose to file a joint return with a U. 1040 online S. 1040 online citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. 1040 online Retirement savings contributions credit. 1040 online   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. 1040 online You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. 1040 online Use Form 8880 to figure the credit. 1040 online For more information, see Publication 590. 1040 online Child tax credit. 1040 online   You may be able to take this credit if you have a qualifying child. 1040 online   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. 1040 online Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). 1040 online Is a U. 1040 online S. 1040 online citizen, a U. 1040 online S. 1040 online national, or a resident alien. 1040 online Did not provide over half of his or her own support for 2013. 1040 online Lived with you more than half of 2013. 1040 online Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. 1040 online Is claimed as a dependent on your return. 1040 online An adopted child is always treated as your own child. 1040 online An adopted child includes a child lawfully placed with you for legal adoption. 1040 online   See your form instructions for additional details. 1040 online Adoption credit. 1040 online   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. 1040 online This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. 1040 online To claim the adoption credit, file Form 8839 with your Form 1040NR. 1040 online   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. 1040 online S. 1040 online citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). 1040 online Credit for prior year minimum tax. 1040 online   If you paid alternative minimum tax in a prior year, get Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, to see if you qualify for this credit. 1040 online Earned income credit. 1040 online   If you are a nonresident alien for any part of the tax year, you generally cannot get the earned income credit. 1040 online However, if you are married and choose to file a joint return with a U. 1040 online S. 1040 online citizen or resident spouse as discussed in chapter 1, you may be eligible for the credit. 1040 online    You, your spouse, and any qualifying child must have valid SSNs to claim this credit. 1040 online You cannot claim the credit using an ITIN. 1040 online If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. 1040 online An example of a federally funded benefit is Medicaid. 1040 online If a card has this legend and the individual's immigration status has changed so that the individual is now a U. 1040 online S. 1040 online citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. 1040 online   See Publication 596 for more information on the credit. 1040 online Tax Withheld You can claim the tax withheld during the year as a payment against your U. 1040 online S. 1040 online tax. 1040 online You claim it on line 61 of Form 1040NR or on line 18 of Form 1040NR-EZ. 1040 online The tax withheld reduces any tax you owe with Form 1040NR or Form 1040NR-EZ. 1040 online Withholding from wages. 1040 online   Any federal income tax withheld from your wages during the tax year while you were a nonresident alien is allowed as a payment against your U. 1040 online S. 1040 online income tax liability for the same year. 1040 online You can claim the income tax withheld whether or not you were engaged in a trade or business in the United States during the year, and whether or not the wages (or any other income) were connected with a trade or business in the United States. 1040 online Excess social security tax withheld. 1040 online   If you have two or more employers, you may be able to claim a credit against your U. 1040 online S. 1040 online income tax liability for social security tax withheld in excess of the maximum required. 1040 online See Social Security and Medicare Taxes in chapter 8 for more information. 1040 online Additional Medicare Tax. 1040 online   Your employer is responsible for withholding the 0. 1040 online 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. 1040 online If you do not owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959. 1040 online Tax paid on undistributed long-term capital gains. 1040 online   If you are a shareholder in a mutual fund (or other regulated investment company) or real estate investment trust, you can claim a credit for your share of any taxes paid by the company on its undistributed long-term capital gains. 1040 online You will receive information on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which you must attach to your return. 1040 online Tax withheld at the source. 1040 online   You can claim as a payment any tax withheld at the source on investment and other fixed or determinable annual or periodic income paid to you. 1040 online Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income. 1040 online Wage or salary payments can be fixed or determinable income to you, but usually are subject to withholding as discussed above. 1040 online Taxes on fixed or determinable income are withheld at a 30% rate or at a lower treaty rate. 1040 online Tax withheld on partnership income. 1040 online   If you are a foreign partner in a partnership, the partnership will withhold tax on your share of effectively connected taxable income from the partnership. 1040 online The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. 1040 online A partnership that is publicly traded may withhold on your actual distributions of effectively connected income. 1040 online In this case, the partnership will give you a statement on Form 1042-S. 1040 online Claim the tax withheld as a payment on line 61b or 61d of Form 1040NR, as appropriate. 1040 online Claiming tax withheld on your return. 1040 online   When you fill out your tax return, take extra care to enter the correct amount of any tax withheld shown on your information documents. 1040 online The following table lists some of the more common information documents and shows where to find the amount of tax withheld. 1040 online Form number Location  of tax  withheld RRB-1042S Box 12 SSA-1042S Box 9 W-2 Box 2 W-2c Box 2 1042-S Box 9 8805 Line 10 8288-A Box 2 Bona Fide Residents of American Samoa or Puerto Rico If you are a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you generally are taxed the same as resident aliens. 1040 online You should file Form 1040 and report all income from sources both in and outside the United States. 1040 online However, you can exclude the income discussed in the following paragraphs. 1040 online For tax purposes other than reporting income, however, you will be treated as a nonresident alien. 1040 online For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. 1040 online There are also limits on what deductions and credits are allowed. 1040 online See Nonresident Aliens under Deductions , Itemized Deductions , and Tax Credits and Payments in this chapter. 1040 online Residents of Puerto Rico. 1040 online   If you are a bona fide resident of Puerto Rico for the entire year, you can exclude from gross income all income from sources in Puerto Rico (other than amounts for services performed as an employee of the United States or any of its agencies). 1040 online   If you report income on a calendar year basis and you do not have wages subject to withholding, file your return and pay your tax by June 15. 1040 online You must also make your first payment of estimated tax by June 15. 1040 online You cannot file a joint income tax return or make joint payments of estimated tax. 1040 online However, if you are married to a U. 1040 online S. 1040 online citizen or resident, see Nonresident Spouse Treated as a Resident in chapter 1. 1040 online   If you earn wages subject to withholding, your U. 1040 online S. 1040 online income tax return is due by April 15. 1040 online Your first payment of estimated tax is also due by April 15. 1040 online For information on withholding and estimated tax, see chapter 8 . 1040 online Residents of American Samoa. 1040 online   If you are a bona fide resident of American Samoa for the entire year, you can exclude from gross income all income from sources in American Samoa (other than amounts for services performed as an employee of the U. 1040 online S. 1040 online government or any of its agencies). 1040 online An employee of the American Samoan government is not considered an employee of the U. 1040 online S. 1040 online government or any of its agencies for purposes of the exclusion. 1040 online For more information about this exclusion, get Form 4563 and Publication 570, Tax Guide for Individuals With Income From U. 1040 online S. 1040 online Possessions. 1040 online Prev  Up  Next   Home   More Online Publications
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1040 online 7. 1040 online   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. 1040 online Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. 1040 online Useful Items - You may want to see: Forms (and Instructions) 1040 U. 1040 online S. 1040 online Individual Income Tax Return 1040A U. 1040 online S. 1040 online Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. 1040 online S. 1040 online Nonresident Alien Income Tax Return 1040NR-EZ U. 1040 online S. 1040 online Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. 1040 online What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. 1040 online Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. 1040 online The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). 1040 online Under U. 1040 online S. 1040 online immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. 1040 online Extensions of time to file. 1040 online   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. 1040 online You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). 1040 online Use Form 4868 to get the extension to October 15. 1040 online In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). 1040 online To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. 1040 online Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. 1040 online   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. 1040 online S. 1040 online citizens and resident aliens abroad who expect to qualify for special tax treatment). 1040 online    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. 1040 online You may be able to file your return electronically. 1040 online See IRS e-file in your form instructions. 1040 online Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. 1040 online If you are any of the following, you must file a return. 1040 online A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. 1040 online (But see Exceptions , later. 1040 online ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. 1040 online S. 1040 online sources, or Your income is exempt from income tax. 1040 online A nonresident alien individual not engaged in a trade or business in the United States with U. 1040 online S. 1040 online income on which the tax liability was not satisfied by the withholding of tax at the source. 1040 online A representative or agent responsible for filing the return of an individual described in (1) or (2). 1040 online A fiduciary for a nonresident alien estate or trust. 1040 online You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. 1040 online For example, if you have no U. 1040 online S. 1040 online business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. 1040 online For information on what is timely, see When to file for deductions and credits under When To File, later. 1040 online Exceptions. 1040 online   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. 1040 online Your only U. 1040 online S. 1040 online trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. 1040 online You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. 1040 online Even if you have left the United States and filed a Form 1040-C, U. 1040 online S. 1040 online Departing Alien Income Tax Return, on departure, you still must file an annual U. 1040 online S. 1040 online income tax return. 1040 online If you are married and both you and your spouse are required to file, you must each file a separate return. 1040 online Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. 1040 online You do not claim any dependents. 1040 online You cannot be claimed as a dependent on someone else's U. 1040 online S. 1040 online tax return. 1040 online If you were married, you do not claim an exemption for your spouse. 1040 online Your taxable income is less than $100,000. 1040 online The only itemized deduction you can claim is for state and local income taxes. 1040 online Note. 1040 online Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. 1040 online See chapter 5. 1040 online Your only U. 1040 online S. 1040 online source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. 1040 online (If you had taxable interest or dividend income, you cannot use this form. 1040 online ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. 1040 online You are not claiming any tax credits. 1040 online This is not an “expatriation return. 1040 online ” See Expatriation Tax in chapter 4. 1040 online The only taxes you owe are: The income tax from the Tax Table. 1040 online The social security and Medicare tax from Form 4137 or Form 8919. 1040 online You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. 1040 online You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. 1040 online If you do not meet all of the above conditions, you must file Form 1040NR. 1040 online When To File If you are an employee and you receive wages subject to U. 1040 online S. 1040 online income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. 1040 online For the 2013 calendar year, file your return by April 15, 2014. 1040 online If you are not an employee who receives wages subject to U. 1040 online S. 1040 online income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040 online For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. 1040 online ) Extensions of time to file. 1040 online   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. 1040 online For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). 1040 online You must file the extension by the regular due date of your return. 1040 online   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). 1040 online To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. 1040 online Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. 1040 online When to file for deductions and credits. 1040 online   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. 1040 online For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. 1040 online However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. 1040 online The allowance of the following credits is not affected by this time requirement. 1040 online Credit for withheld taxes. 1040 online Credit for excise tax on certain uses of gasoline and special fuels. 1040 online Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. 1040 online Protective return. 1040 online   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. 1040 online S. 1040 online trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. 1040 online By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. 1040 online You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. 1040 online   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. 1040 online To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. 1040 online   You can follow the same procedure if you believe you have no U. 1040 online S. 1040 online tax liability because of a U. 1040 online S. 1040 online tax treaty. 1040 online Be sure to also complete item L on page 5 of Form 1040NR. 1040 online Waiver of filing deadline. 1040 online   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. 1040 online S. 1040 online income tax return (including a protective return) and you cooperate with the IRS in determining your U. 1040 online S. 1040 online income tax liability for the tax year for which you did not file a return. 1040 online Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. 1040 online  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. 1040 online O. 1040 online Box 1303 Charlotte, NC 28201-1303 Aliens from the U. 1040 online S. 1040 online Virgin Islands. 1040 online    If you are a bona fide resident of the U. 1040 online S. 1040 online Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. 1040 online S. 1040 online Virgin Islands and file your income tax returns at the following address. 1040 online Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. 1040 online Thomas, VI 00802   Report all income from U. 1040 online S. 1040 online sources, as well as income from other sources, on your return. 1040 online For information on filing U. 1040 online S. 1040 online Virgin Islands returns, contact the U. 1040 online S. 1040 online Virgin Islands Bureau of Internal Revenue. 1040 online   Chapter 8 discusses withholding from U. 1040 online S. 1040 online wages of U. 1040 online S. 1040 online Virgin Islanders. 1040 online Aliens from Guam or the Commonwealth of the Northern Mariana Islands. 1040 online   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. 1040 online Report all income, including income from U. 1040 online S. 1040 online sources, on your return. 1040 online It is not necessary to file a separate U. 1040 online S. 1040 online income tax return. 1040 online    Bona fide residents of Guam should file their Guam returns at the following address. 1040 online   Department of Revenue and Taxation Government of Guam P. 1040 online O. 1040 online Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. 1040 online   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040 online O. 1040 online Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. 1040 online 570, Tax Guide for Individuals With Income From U. 1040 online S. 1040 online Possessions, for information on where to file your return. 1040 online Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. 1040 online S. 1040 online Individual Income Tax Return. 1040 online Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. 1040 online If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. 1040 online ) to Form 1040X. 1040 online Print “Amended” across the top. 1040 online Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. 1040 online A return filed before the final due date is considered to have been filed on the due date. 1040 online Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. 1040 online FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. 1040 online The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. 1040 online The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. 1040 online However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. 1040 online A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. 1040 online Filing requirements. 1040 online   FinCEN Form 105 filing requirements follow. 1040 online Recipients. 1040 online   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. 1040 online Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. 1040 online   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. 1040 online Travelers. 1040 online   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. 1040 online Penalties. 1040 online   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. 1040 online Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. 1040 online More information. 1040 online   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. 1040 online Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. 1040 online A resident alien of the United States for any part of the tax year. 1040 online A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. 1040 online S. 1040 online income tax treaty. 1040 online See Effect of Tax Treaties in chapter 1. 1040 online A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. 1040 online See chapter 1 for information about this election. 1040 online A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. 1040 online See Publication 570, Tax Guide for Individuals With Income From U. 1040 online S. 1040 online Possessions, for a definition of bona fide resident. 1040 online You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). 1040 online The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. 1040 online Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. 1040 online S. 1040 online person. 1040 online You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. 1040 online More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. 1040 online Penalties The law provides penalties for failure to file returns or pay taxes as required. 1040 online Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. 1040 online You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. 1040 online If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. 1040 online Filing late. 1040 online   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. 1040 online The penalty is based on the tax not paid by the due date (without regard to extensions). 1040 online The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. 1040 online Fraud. 1040 online   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. 1040 online Return over 60 days late. 1040 online   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. 1040 online Exception. 1040 online   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. 1040 online Paying tax late. 1040 online   You will have to pay a failure-to-pay penalty of ½ of 1% (. 1040 online 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. 1040 online This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. 1040 online   The monthly rate of the failure-to-pay penalty is half the usual rate (. 1040 online 25% instead of . 1040 online 50%) if an installment agreement is in effect for that month. 1040 online You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. 1040 online   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. 1040 online If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. 1040 online   This penalty cannot be more than 25% of your unpaid tax. 1040 online You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. 1040 online Combined penalties. 1040 online   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. 1040 online However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. 1040 online Accuracy-related penalty. 1040 online   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. 1040 online The penalty is equal to 20% of the underpayment. 1040 online The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. 1040 online The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. 1040 online Negligence or disregard. 1040 online   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. 1040 online Negligence also includes failure to keep adequate books and records. 1040 online You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. 1040 online   The term “disregard” includes any careless, reckless, or intentional disregard. 1040 online Adequate disclosure. 1040 online   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. 1040 online See Disclosure statement , later. 1040 online   This exception will not apply to an item that is attributable to a tax shelter. 1040 online In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. 1040 online Substantial understatement of income tax. 1040 online   You understate your tax if the tax shown on your return is less than the correct tax. 1040 online The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. 1040 online However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. 1040 online   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. 1040 online However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. 1040 online Substantial authority. 1040 online   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. 1040 online Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. 1040 online Disclosure statement. 1040 online   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. 1040 online You must also have a reasonable basis for treating the item the way you did. 1040 online   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. 1040 online   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. 1040 online Transaction lacking economic substance. 1040 online   For more information on economic substance, see section 7701(o). 1040 online Foreign financial asset. 1040 online   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. 1040 online Reasonable cause. 1040 online   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. 1040 online You must also show that you acted in good faith. 1040 online This does not apply to a transaction that lacks economic substance. 1040 online Filing erroneous claim for refund or credit. 1040 online   You may have to pay a penalty if you file an erroneous claim for refund or credit. 1040 online The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. 1040 online However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. 1040 online The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. 1040 online Frivolous tax submission. 1040 online   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. 1040 online A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. 1040 online For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. 1040 online irs. 1040 online gov/irb/2010-17_irb/ar13. 1040 online html. 1040 online   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. 1040 online This includes altering or striking out the preprinted language above the space provided for your signature. 1040 online   This penalty is added to any other penalty provided by law. 1040 online Fraud. 1040 online   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. 1040 online Failure to supply taxpayer identification number. 1040 online   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. 1040 online You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. 1040 online   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. 1040 online The number must be shown on the Form 1099-INT or other statement the bank sends you. 1040 online If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. 1040 online (You also may be subject to “backup” withholding of income tax. 1040 online )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. 1040 online Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. 1040 online Prev  Up  Next   Home   More Online Publications