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1040ez State Tax Form

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1040ez State Tax Form

1040ez state tax form 4. 1040ez state tax form   Qualified Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Kinds of PlansDefined Contribution Plan Defined Benefit Plan Qualification RulesEarly retirement. 1040ez state tax form Loan secured by benefits. 1040ez state tax form Waiver of survivor benefits. 1040ez state tax form Waiver of 30-day waiting period before annuity starting date. 1040ez state tax form Involuntary cash-out of benefits not more than dollar limit. 1040ez state tax form Exception for certain loans. 1040ez state tax form Exception for QDRO. 1040ez state tax form SIMPLE and safe harbor 401(k) plan exception. 1040ez state tax form Setting Up a Qualified PlanAdopting a Written Plan Investing Plan Assets Minimum Funding RequirementDue dates. 1040ez state tax form Installment percentage. 1040ez state tax form Extended period for making contributions. 1040ez state tax form ContributionsEmployer Contributions Employee Contributions When Contributions Are Considered Made Employer DeductionDeduction Limits Deduction Limit for Self-Employed Individuals Where To Deduct Contributions Carryover of Excess Contributions Excise Tax for Nondeductible (Excess) Contributions Elective Deferrals (401(k) Plans)Limit on Elective Deferrals Automatic Enrollment Treatment of Excess Deferrals Qualified Roth Contribution ProgramElective Deferrals Qualified Distributions Reporting Requirements DistributionsRequired Distributions Distributions From 401(k) Plans Tax Treatment of Distributions Tax on Early Distributions Tax on Excess Benefits Excise Tax on Reversion of Plan Assets Notification of Significant Benefit Accrual Reduction Prohibited TransactionsTax on Prohibited Transactions Reporting RequirementsOne-participant plan. 1040ez state tax form Caution: Form 5500-EZ not required. 1040ez state tax form Form 5500. 1040ez state tax form Electronic filing of Forms 5500 and 5500-SF. 1040ez state tax form Topics - This chapter discusses: Kinds of plans Qualification rules Setting up a qualified plan Minimum funding requirement Contributions Employer deduction Elective deferrals (401(k) plans) Qualified Roth contribution program Distributions Prohibited transactions Reporting requirements Useful Items - You may want to see: Publications 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 3066 Have you had your Check-up this year? for Retirement Plans 3998 Choosing A Retirement Solution for Your Small Business 4222 401(k) Plans for Small Businesses 4530 Designated Roth Accounts under a 401(k), 403(b), or governmental 457(b) plans 4531 401(k) Plan Checklist 4674 Automatic Enrollment 401(k) Plans for Small Businesses 4806 Profit Sharing Plans for Small Businesses Forms (and Instructions) www. 1040ez state tax form dol. 1040ez state tax form gov/ebsa/pdf/2013-5500. 1040ez state tax form pdf www. 1040ez state tax form dol. 1040ez state tax form gov/ebsa/pdf/2013-5500-SF. 1040ez state tax form pdf W-2 Wage and Tax Statement Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. 1040ez state tax form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040ez state tax form 1040 U. 1040ez state tax form S. 1040ez state tax form Individual Income Tax Return Schedule C (Form 1040) Profit or Loss From Business Schedule F (Form 1040) Profit or Loss From Farming 5300 Application for Determination for Employee Benefit Plan 5310 Application for Determination for Terminating Plan 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330 Return of Excise Taxes Related to Employee Benefit Plans 5500 Annual Return/Report of Employee Benefit Plan. 1040ez state tax form For copies of this form, go to: 5500-EZ Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan 5500-SF Short Form Annual Return/Report of Small Employee Benefit Plan. 1040ez state tax form For copies of this form, go to: 8717 User Fee for Employee Plan Determination Letter Request 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs 8955-SSA Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits These qualified retirement plans set up by self-employed individuals are sometimes called Keogh or H. 1040ez state tax form R. 1040ez state tax form 10 plans. 1040ez state tax form A sole proprietor or a partnership can set up one of these plans. 1040ez state tax form A common-law employee or a partner cannot set up one of these plans. 1040ez state tax form The plans described here can also be set up and maintained by employers that are corporations. 1040ez state tax form All the rules discussed here apply to corporations except where specifically limited to the self-employed. 1040ez state tax form The plan must be for the exclusive benefit of employees or their beneficiaries. 1040ez state tax form These qualified plans can include coverage for a self-employed individual. 1040ez state tax form As an employer, you can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. 1040ez state tax form The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. 1040ez state tax form Kinds of Plans There are two basic kinds of qualified plans—defined contribution plans and defined benefit plans—and different rules apply to each. 1040ez state tax form You can have more than one qualified plan, but your contributions to all the plans must not total more than the overall limits discussed under Contributions and Employer Deduction, later. 1040ez state tax form Defined Contribution Plan A defined contribution plan provides an individual account for each participant in the plan. 1040ez state tax form It provides benefits to a participant largely based on the amount contributed to that participant's account. 1040ez state tax form Benefits are also affected by any income, expenses, gains, losses, and forfeitures of other accounts that may be allocated to an account. 1040ez state tax form A defined contribution plan can be either a profit-sharing plan or a money purchase pension plan. 1040ez state tax form Profit-sharing plan. 1040ez state tax form   Although it is called a “profit-sharing plan,” you do not actually have to make a business profit for the year in order to make a contribution (except for yourself if you are self-employed as discussed under Self-employed Individual, later). 1040ez state tax form A profit-sharing plan can be set up to allow for discretionary employer contributions, meaning the amount contributed each year to the plan is not fixed. 1040ez state tax form An employer may even make no contribution to the plan for a given year. 1040ez state tax form   The plan must provide a definite formula for allocating the contribution among the participants and for distributing the accumulated funds to the employees after they reach a certain age, after a fixed number of years, or upon certain other occurrences. 1040ez state tax form   In general, you can be more flexible in making contributions to a profit-sharing plan than to a money purchase pension plan (discussed next) or a defined benefit plan (discussed later). 1040ez state tax form Money purchase pension plan. 1040ez state tax form   Contributions to a money purchase pension plan are fixed and are not based on your business profits. 1040ez state tax form For example, if the plan requires that contributions be 10% of the participants' compensation without regard to whether you have profits (or the self-employed person has earned income), the plan is a money purchase pension plan. 1040ez state tax form This applies even though the compensation of a self-employed individual as a participant is based on earned income derived from business profits. 1040ez state tax form Defined Benefit Plan A defined benefit plan is any plan that is not a defined contribution plan. 1040ez state tax form Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. 1040ez state tax form Actuarial assumptions and computations are required to figure these contributions. 1040ez state tax form Generally, you will need continuing professional help to have a defined benefit plan. 1040ez state tax form Qualification Rules To qualify for the tax benefits available to qualified plans, a plan must meet certain requirements (qualification rules) of the tax law. 1040ez state tax form Generally, unless you write your own plan, the financial institution that provided your plan will take the continuing responsibility for meeting qualification rules that are later changed. 1040ez state tax form The following is a brief overview of important qualification rules that generally have not yet been discussed. 1040ez state tax form It is not intended to be all-inclusive. 1040ez state tax form See Setting Up a Qualified Plan , later. 1040ez state tax form Generally, the following qualification rules also apply to a SIMPLE 401(k) retirement plan. 1040ez state tax form A SIMPLE 401(k) plan is, however, not subject to the top-heavy plan rules and nondiscrimination rules if the plan satisfies the provisions discussed in chapter 3 under SIMPLE 401(k) Plan. 1040ez state tax form Plan assets must not be diverted. 1040ez state tax form   Your plan must make it impossible for its assets to be used for, or diverted to, purposes other than the benefit of employees and their beneficiaries. 1040ez state tax form As a general rule, the assets cannot be diverted to the employer. 1040ez state tax form Minimum coverage requirement must be met. 1040ez state tax form   To be a qualified plan, a defined benefit plan must benefit at least the lesser of the following. 1040ez state tax form 50 employees, or The greater of: 40% of all employees, or Two employees. 1040ez state tax form If there is only one employee, the plan must benefit that employee. 1040ez state tax form Contributions or benefits must not discriminate. 1040ez state tax form   Under the plan, contributions or benefits to be provided must not discriminate in favor of highly compensated employees. 1040ez state tax form Contributions and benefits must not be more than certain limits. 1040ez state tax form   Your plan must not provide for contributions or benefits that are more than certain limits. 1040ez state tax form The limits apply to the annual contributions and other additions to the account of a participant in a defined contribution plan and to the annual benefit payable to a participant in a defined benefit plan. 1040ez state tax form These limits are discussed later in this chapter under Contributions. 1040ez state tax form Minimum vesting standard must be met. 1040ez state tax form   Your plan must satisfy certain requirements regarding when benefits vest. 1040ez state tax form A benefit is vested (you have a fixed right to it) when it becomes nonforfeitable. 1040ez state tax form A benefit is nonforfeitable if it cannot be lost upon the happening, or failure to happen, of any event. 1040ez state tax form Special rules apply to forfeited benefit amounts. 1040ez state tax form In defined contribution plans, forfeitures can be allocated to the accounts of remaining participants in a nondiscriminatory way, or they can be used to reduce your contributions. 1040ez state tax form   Forfeitures under a defined benefit plan cannot be used to increase the benefits any employee would otherwise receive under the plan. 1040ez state tax form Forfeitures must be used instead to reduce employer contributions. 1040ez state tax form Participation. 1040ez state tax form   In general, an employee must be allowed to participate in your plan if he or she meets both the following requirements. 1040ez state tax form Has reached age 21. 1040ez state tax form Has at least 1 year of service (2 years if the plan is not a 401(k) plan and provides that after not more than 2 years of service the employee has a nonforfeitable right to all his or her accrued benefit). 1040ez state tax form A plan cannot exclude an employee because he or she has reached a specified age. 1040ez state tax form Leased employee. 1040ez state tax form   A leased employee, defined in chapter 1, who performs services for you (recipient of the services) is treated as your employee for certain plan qualification rules. 1040ez state tax form These rules include those in all the following areas. 1040ez state tax form Nondiscrimination in coverage, contributions, and benefits. 1040ez state tax form Minimum age and service requirements. 1040ez state tax form Vesting. 1040ez state tax form Limits on contributions and benefits. 1040ez state tax form Top-heavy plan requirements. 1040ez state tax form Contributions or benefits provided by the leasing organization for services performed for you are treated as provided by you. 1040ez state tax form Benefit payment must begin when required. 1040ez state tax form   Your plan must provide that, unless the participant chooses otherwise, the payment of benefits to the participant must begin within 60 days after the close of the latest of the following periods. 1040ez state tax form The plan year in which the participant reaches the earlier of age 65 or the normal retirement age specified in the plan. 1040ez state tax form The plan year in which the 10th anniversary of the year in which the participant began participating in the plan occurs. 1040ez state tax form The plan year in which the participant separates from service. 1040ez state tax form Early retirement. 1040ez state tax form   Your plan can provide for payment of retirement benefits before the normal retirement age. 1040ez state tax form If your plan offers an early retirement benefit, a participant who separates from service before satisfying the early retirement age requirement is entitled to that benefit if he or she meets both the following requirements. 1040ez state tax form Satisfies the service requirement for the early retirement benefit. 1040ez state tax form Separates from service with a nonforfeitable right to an accrued benefit. 1040ez state tax form The benefit, which may be actuarially reduced, is payable when the early retirement age requirement is met. 1040ez state tax form Required minimum distributions. 1040ez state tax form   Special rules require minimum annual distributions from qualified plans, generally beginning after age  70½. 1040ez state tax form See Required Distributions , under Distributions, later. 1040ez state tax form Survivor benefits. 1040ez state tax form   Defined benefit and money purchase pension plans must provide automatic survivor benefits in both the following forms. 1040ez state tax form A qualified joint and survivor annuity for a vested participant who does not die before the annuity starting date. 1040ez state tax form A qualified pre-retirement survivor annuity for a vested participant who dies before the annuity starting date and who has a surviving spouse. 1040ez state tax form   The automatic survivor benefit also applies to any participant under a profit-sharing plan unless all the following conditions are met. 1040ez state tax form The participant does not choose benefits in the form of a life annuity. 1040ez state tax form The plan pays the full vested account balance to the participant's surviving spouse (or other beneficiary if the surviving spouse consents or if there is no surviving spouse) if the participant dies. 1040ez state tax form The plan is not a direct or indirect transferee of a plan that must provide automatic survivor benefits. 1040ez state tax form Loan secured by benefits. 1040ez state tax form   If automatic survivor benefits are required for a spouse under a plan, he or she must consent to a loan that uses as security the accrued benefits in the plan. 1040ez state tax form Waiver of survivor benefits. 1040ez state tax form   Each plan participant may be permitted to waive the joint and survivor annuity or the pre-retirement survivor annuity (or both), but only if the participant has the written consent of the spouse. 1040ez state tax form The plan also must allow the participant to withdraw the waiver. 1040ez state tax form The spouse's consent must be witnessed by a plan representative or notary public. 1040ez state tax form Waiver of 30-day waiting period before annuity starting date. 1040ez state tax form    A plan may permit a participant to waive (with spousal consent) the 30-day minimum waiting period after a written explanation of the terms and conditions of a joint and survivor annuity is provided to each participant. 1040ez state tax form   The waiver is allowed only if the distribution begins more than 7 days after the written explanation is provided. 1040ez state tax form Involuntary cash-out of benefits not more than dollar limit. 1040ez state tax form   A plan may provide for the immediate distribution of the participant's benefit under the plan if the present value of the benefit is not greater than $5,000. 1040ez state tax form   However, the distribution cannot be made after the annuity starting date unless the participant and the spouse or surviving spouse of a participant who died (if automatic survivor benefits are required for a spouse under the plan) consents in writing to the distribution. 1040ez state tax form If the present value is greater than $5,000, the plan must have the written consent of the participant and the spouse or surviving spouse (if automatic survivor benefits are required for a spouse under the plan) for any immediate distribution of the benefit. 1040ez state tax form   Benefits attributable to rollover contributions and earnings on them can be ignored in determining the present value of these benefits. 1040ez state tax form   A plan must provide for the automatic rollover of any cash-out distribution of more than $1,000 to an individual retirement account or annuity, unless the participant chooses otherwise. 1040ez state tax form A section 402(f) notice must be sent prior to an involuntary cash-out of an eligible rollover distribution. 1040ez state tax form See Section 402(f) Notice under Distributions, later, for more details. 1040ez state tax form Consolidation, merger, or transfer of assets or liabilities. 1040ez state tax form   Your plan must provide that, in the case of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, each participant would (if the plan then terminated) receive a benefit equal to or more than the benefit he or she would have been entitled to just before the merger, etc. 1040ez state tax form (if the plan had then terminated). 1040ez state tax form Benefits must not be assigned or alienated. 1040ez state tax form   Your plan must provide that a participant's or beneficiary's benefits under the plan cannot be taken away by any legal or equitable proceeding except as provided below or pursuant to certain judgements or settlements against the participant for violations of plan rules. 1040ez state tax form Exception for certain loans. 1040ez state tax form   A loan from the plan (not from a third party) to a participant or beneficiary is not treated as an assignment or alienation if the loan is secured by the participant's accrued nonforfeitable benefit and is exempt from the tax on prohibited transactions under section 4975(d)(1) or would be exempt if the participant were a disqualified person. 1040ez state tax form A disqualified person is defined later in this chapter under Prohibited Transactions. 1040ez state tax form Exception for QDRO. 1040ez state tax form   Compliance with a QDRO (qualified domestic relations order) does not result in a prohibited assignment or alienation of benefits. 1040ez state tax form   Payments to an alternate payee under a QDRO before the participant attains age 59½ are not subject to the 10% additional tax that would otherwise apply under certain circumstances. 1040ez state tax form Benefits distributed to an alternate payee under a QDRO can be rolled over tax free to an individual retirement account or to an individual retirement annuity. 1040ez state tax form No benefit reduction for social security increases. 1040ez state tax form   Your plan must not permit a benefit reduction for a post-separation increase in the social security benefit level or wage base for any participant or beneficiary who is receiving benefits under your plan, or who is separated from service and has nonforfeitable rights to benefits. 1040ez state tax form This rule also applies to plans supplementing the benefits provided by other federal or state laws. 1040ez state tax form Elective deferrals must be limited. 1040ez state tax form   If your plan provides for elective deferrals, it must limit those deferrals to the amount in effect for that particular year. 1040ez state tax form See Limit on Elective Deferrals later in this chapter. 1040ez state tax form Top-heavy plan requirements. 1040ez state tax form   A top-heavy plan is one that mainly favors partners, sole proprietors, and other key employees. 1040ez state tax form   A plan is top-heavy for a plan year if, for the preceding plan year, the total value of accrued benefits or account balances of key employees is more than 60% of the total value of accrued benefits or account balances of all employees. 1040ez state tax form Additional requirements apply to a top-heavy plan primarily to provide minimum benefits or contributions for non-key employees covered by the plan. 1040ez state tax form   Most qualified plans, whether or not top-heavy, must contain provisions that meet the top-heavy requirements and will take effect in plan years in which the plans are top-heavy. 1040ez state tax form These qualification requirements for top-heavy plans are explained in section 416 and its regulations. 1040ez state tax form SIMPLE and safe harbor 401(k) plan exception. 1040ez state tax form   The top-heavy plan requirements do not apply to SIMPLE 401(k) plans, discussed earlier in chapter 3, or to safe harbor 401(k) plans that consist solely of safe harbor contributions, discussed later in this chapter. 1040ez state tax form QACAs (discussed later) also are not subject to top-heavy requirements. 1040ez state tax form Setting Up a Qualified Plan There are two basic steps in setting up a qualified plan. 1040ez state tax form First you adopt a written plan. 1040ez state tax form Then you invest the plan assets. 1040ez state tax form You, the employer, are responsible for setting up and maintaining the plan. 1040ez state tax form If you are self-employed, it is not necessary to have employees besides yourself to sponsor and set up a qualified plan. 1040ez state tax form If you have employees, see Participation, under Qualification Rules, earlier. 1040ez state tax form Set-up deadline. 1040ez state tax form   To take a deduction for contributions for a tax year, your plan must be set up (adopted) by the last day of that year (December 31 for calendar-year employers). 1040ez state tax form Credit for startup costs. 1040ez state tax form   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a qualified plan that first became effective in 2013. 1040ez state tax form For more information, see Credit for startup costs under Reminders, earlier. 1040ez state tax form Adopting a Written Plan You must adopt a written plan. 1040ez state tax form The plan can be an IRS-approved master or prototype plan offered by a sponsoring organization. 1040ez state tax form Or it can be an individually designed plan. 1040ez state tax form Written plan requirement. 1040ez state tax form   To qualify, the plan you set up must be in writing and must be communicated to your employees. 1040ez state tax form The plan's provisions must be stated in the plan. 1040ez state tax form It is not sufficient for the plan to merely refer to a requirement of the Internal Revenue Code. 1040ez state tax form Master or prototype plans. 1040ez state tax form   Most qualified plans follow a standard form of plan (a master or prototype plan) approved by the IRS. 1040ez state tax form Master and prototype plans are plans made available by plan providers for adoption by employers (including self-employed individuals). 1040ez state tax form Under a master plan, a single trust or custodial account is established, as part of the plan, for the joint use of all adopting employers. 1040ez state tax form Under a prototype plan, a separate trust or custodial account is established for each employer. 1040ez state tax form Plan providers. 1040ez state tax form   The following organizations generally can provide IRS-approved master or prototype plans. 1040ez state tax form Banks (including some savings and loan associations and federally insured credit unions). 1040ez state tax form Trade or professional organizations. 1040ez state tax form Insurance companies. 1040ez state tax form Mutual funds. 1040ez state tax form Individually designed plan. 1040ez state tax form   If you prefer, you can set up an individually designed plan to meet specific needs. 1040ez state tax form Although advance IRS approval is not required, you can apply for approval by paying a fee and requesting a determination letter. 1040ez state tax form You may need professional help for this. 1040ez state tax form See Rev. 1040ez state tax form Proc. 1040ez state tax form 2014-6, 2014-1 I. 1040ez state tax form R. 1040ez state tax form B. 1040ez state tax form 198, available at www. 1040ez state tax form irs. 1040ez state tax form gov/irb/2014-1_IRB/ar10. 1040ez state tax form html, as annually updated, that may help you decide whether to apply for approval. 1040ez state tax form Internal Revenue Bulletins are available on the IRS website at IRS. 1040ez state tax form gov They are also available at most IRS offices and at certain libraries. 1040ez state tax form User fee. 1040ez state tax form   The fee mentioned earlier for requesting a determination letter does not apply to employers who have 100 or fewer employees who received at least $5,000 of compensation from the employer for the preceding year. 1040ez state tax form At least one of them must be a non-highly compensated employee participating in the plan. 1040ez state tax form The fee does not apply to requests made by the later of the following dates. 1040ez state tax form The end of the 5th plan year the plan is in effect. 1040ez state tax form The end of any remedial amendment period for the plan that begins within the first 5 plan years. 1040ez state tax form The request cannot be made by the sponsor of a prototype or similar plan the sponsor intends to market to participating employers. 1040ez state tax form   For more information about whether the user fee applies, see Rev. 1040ez state tax form Proc. 1040ez state tax form 2014-8, 2014-1 I. 1040ez state tax form R. 1040ez state tax form B. 1040ez state tax form 242, available at www. 1040ez state tax form irs. 1040ez state tax form gov/irb/2014-1_IRB/ar12. 1040ez state tax form html, as may be annually updated; Notice 2003-49, 2003-32 I. 1040ez state tax form R. 1040ez state tax form B. 1040ez state tax form 294, available at www. 1040ez state tax form irs. 1040ez state tax form gov/irb/2003-32_IRB/ar13. 1040ez state tax form html; and Notice 2011-86, 2011-45 I. 1040ez state tax form R. 1040ez state tax form B. 1040ez state tax form 698, available at www. 1040ez state tax form irs. 1040ez state tax form gov/irb/2011-45_IRB/ar11. 1040ez state tax form html. 1040ez state tax form Investing Plan Assets In setting up a qualified plan, you arrange how the plan's funds will be used to build its assets. 1040ez state tax form You can establish a trust or custodial account to invest the funds. 1040ez state tax form You, the trust, or the custodial account can buy an annuity contract from an insurance company. 1040ez state tax form Life insurance can be included only if it is incidental to the retirement benefits. 1040ez state tax form You set up a trust by a legal instrument (written document). 1040ez state tax form You may need professional help to do this. 1040ez state tax form You can set up a custodial account with a bank, savings and loan association, credit union, or other person who can act as the plan trustee. 1040ez state tax form You do not need a trust or custodial account, although you can have one, to invest the plan's funds in annuity contracts or face-amount certificates. 1040ez state tax form If anyone other than a trustee holds them, however, the contracts or certificates must state they are not transferable. 1040ez state tax form Other plan requirements. 1040ez state tax form   For information on other important plan requirements, see Qualification Rules , earlier in this chapter. 1040ez state tax form Minimum Funding Requirement In general, if your plan is a money purchase pension plan or a defined benefit plan, you must actually pay enough into the plan to satisfy the minimum funding standard for each year. 1040ez state tax form Determining the amount needed to satisfy the minimum funding standard for a defined benefit plan is complicated, and you should seek professional help in order to meet these contribution requirements. 1040ez state tax form For information on this funding requirement, see section 412 and its regulations. 1040ez state tax form Quarterly installments of required contributions. 1040ez state tax form   If your plan is a defined benefit plan subject to the minimum funding requirements, you generally must make quarterly installment payments of the required contributions. 1040ez state tax form If you do not pay the full installments timely, you may have to pay interest on any underpayment for the period of the underpayment. 1040ez state tax form Due dates. 1040ez state tax form   The due dates for the installments are 15 days after the end of each quarter. 1040ez state tax form For a calendar-year plan, the installments are due April 15, July 15, October 15, and January 15 (of the following year). 1040ez state tax form Installment percentage. 1040ez state tax form   Each quarterly installment must be 25% of the required annual payment. 1040ez state tax form Extended period for making contributions. 1040ez state tax form   Additional contributions required to satisfy the minimum funding requirement for a plan year will be considered timely if made by 8½ months after the end of that year. 1040ez state tax form Contributions A qualified plan is generally funded by your contributions. 1040ez state tax form However, employees participating in the plan may be permitted to make contributions, and you may be permitted to make contributions on your own behalf. 1040ez state tax form See Employee Contributions and Elective Deferrals later. 1040ez state tax form Contributions deadline. 1040ez state tax form   You can make deductible contributions for a tax year up to the due date of your return (plus extensions) for that year. 1040ez state tax form Self-employed individual. 1040ez state tax form   You can make contributions on behalf of yourself only if you have net earnings (compensation) from self-employment in the trade or business for which the plan was set up. 1040ez state tax form Your net earnings must be from your personal services, not from your investments. 1040ez state tax form If you have a net loss from self-employment, you cannot make contributions for yourself for the year, even if you can contribute for common-law employees based on their compensation. 1040ez state tax form Employer Contributions There are certain limits on the contributions and other annual additions you can make each year for plan participants. 1040ez state tax form There are also limits on the amount you can deduct. 1040ez state tax form See Deduction Limits , later. 1040ez state tax form Limits on Contributions and Benefits Your plan must provide that contributions or benefits cannot exceed certain limits. 1040ez state tax form The limits differ depending on whether your plan is a defined contribution plan or a defined benefit plan. 1040ez state tax form Defined benefit plan. 1040ez state tax form   For 2013, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of the following amounts. 1040ez state tax form 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. 1040ez state tax form $205,000 ($210,000 for 2014). 1040ez state tax form Defined contribution plan. 1040ez state tax form   For 2013, a defined contribution plan's annual contributions and other additions (excluding earnings) to the account of a participant cannot exceed the lesser of the following amounts. 1040ez state tax form 100% of the participant's compensation. 1040ez state tax form $51,000 ($52,000 for 2014). 1040ez state tax form   Catch-up contributions (discussed later under Limit on Elective Deferrals) are not subject to the above limit. 1040ez state tax form Employee Contributions Participants may be permitted to make nondeductible contributions to a plan in addition to your contributions. 1040ez state tax form Even though these employee contributions are not deductible, the earnings on them are tax free until distributed in later years. 1040ez state tax form Also, these contributions must satisfy the actual contribution percentage (ACP) test of section 401(m)(2), a nondiscrimination test that applies to employee contributions and matching contributions. 1040ez state tax form See Regulations sections 1. 1040ez state tax form 401(k)-2 and 1. 1040ez state tax form 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). 1040ez state tax form When Contributions Are Considered Made You generally apply your plan contributions to the year in which you make them. 1040ez state tax form But you can apply them to the previous year if all the following requirements are met. 1040ez state tax form You make them by the due date of your tax return for the previous year (plus extensions). 1040ez state tax form The plan was established by the end of the previous year. 1040ez state tax form The plan treats the contributions as though it had received them on the last day of the previous year. 1040ez state tax form You do either of the following. 1040ez state tax form You specify in writing to the plan administrator or trustee that the contributions apply to the previous year. 1040ez state tax form You deduct the contributions on your tax return for the previous year. 1040ez state tax form A partnership shows contributions for partners on Form 1065. 1040ez state tax form Employer's promissory note. 1040ez state tax form   Your promissory note made out to the plan is not a payment that qualifies for the deduction. 1040ez state tax form Also, issuing this note is a prohibited transaction subject to tax. 1040ez state tax form See Prohibited Transactions , later. 1040ez state tax form Employer Deduction You can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. 1040ez state tax form The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. 1040ez state tax form Deduction Limits The deduction limit for your contributions to a qualified plan depends on the kind of plan you have. 1040ez state tax form Defined contribution plans. 1040ez state tax form   The deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to your eligible employees participating in the plan. 1040ez state tax form If you are self-employed, you must reduce this limit in figuring the deduction for contributions you make for your own account. 1040ez state tax form See Deduction Limit for Self-Employed Individuals , later. 1040ez state tax form   When figuring the deduction limit, the following rules apply. 1040ez state tax form Elective deferrals (discussed later) are not subject to the limit. 1040ez state tax form Compensation includes elective deferrals. 1040ez state tax form The maximum compensation that can be taken into account for each employee in 2013 is $255,000 ($260,000 for 2014). 1040ez state tax form Defined benefit plans. 1040ez state tax form   The deduction for contributions to a defined benefit plan is based on actuarial assumptions and computations. 1040ez state tax form Consequently, an actuary must figure your deduction limit. 1040ez state tax form    In figuring the deduction for contributions, you cannot take into account any contributions or benefits that are more than the limits discussed earlier under Limits on Contributions and Benefits, earlier. 1040ez state tax form Table 4–1. 1040ez state tax form Carryover of Excess Contributions Illustrated—Profit-Sharing Plan (000's omitted) Year Participants' compensation Participants' share of required contribution (10% of annual profit) Deductible  limit for current year (25% of compensation) Contribution Excess contribution carryover used1 Total  deduction including carryovers Excess contribution carryover available at end of year 2010 $1,000 $100 $250 $100 $ 0 $100 $ 0 2011 400 165 100 165 0 100 65 2012 500 100 125 100 25 125 40 2013 600 100 150 100 40 140 0  1There were no carryovers from years before 2010. 1040ez state tax form Deduction Limit for Self-Employed Individuals If you make contributions for yourself, you need to make a special computation to figure your maximum deduction for these contributions. 1040ez state tax form Compensation is your net earnings from self-employment, defined in chapter 1. 1040ez state tax form This definition takes into account both the following items. 1040ez state tax form The deduction for the deductible part of your self-employment tax. 1040ez state tax form The deduction for contributions on your behalf to the plan. 1040ez state tax form The deduction for your own contributions and your net earnings depend on each other. 1040ez state tax form For this reason, you determine the deduction for your own contributions indirectly by reducing the contribution rate called for in your plan. 1040ez state tax form To do this, use either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed in chapter 5. 1040ez state tax form Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. 1040ez state tax form Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. 1040ez state tax form For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040); partnerships deduct them on Form 1065; and corporations deduct them on Form 1120, or Form 1120S. 1040ez state tax form Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. 1040ez state tax form (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you get from the partnership. 1040ez state tax form ) Carryover of Excess Contributions If you contribute more to the plans than you can deduct for the year, you can carry over and deduct the difference in later years, combined with your contributions for those years. 1040ez state tax form Your combined deduction in a later year is limited to 25% of the participating employees' compensation for that year. 1040ez state tax form For purposes of this limit, a SEP is treated as a profit-sharing (defined contribution) plan. 1040ez state tax form However, this percentage limit must be reduced to figure your maximum deduction for contributions you make for yourself. 1040ez state tax form See Deduction Limit for Self-Employed Individuals, earlier. 1040ez state tax form The amount you carry over and deduct may be subject to the excise tax discussed next. 1040ez state tax form Table 4-1, earlier, illustrates the carryover of excess contributions to a profit-sharing plan. 1040ez state tax form Excise Tax for Nondeductible (Excess) Contributions If you contribute more than your deduction limit to a retirement plan, you have made nondeductible contributions and you may be liable for an excise tax. 1040ez state tax form In general, a 10% excise tax applies to nondeductible contributions made to qualified pension and profit-sharing plans and to SEPs. 1040ez state tax form Special rule for self-employed individuals. 1040ez state tax form   The 10% excise tax does not apply to any contribution made to meet the minimum funding requirements in a money purchase pension plan or a defined benefit plan. 1040ez state tax form Even if that contribution is more than your earned income from the trade or business for which the plan is set up, the difference is not subject to this excise tax. 1040ez state tax form See Minimum Funding Requirement , earlier. 1040ez state tax form Reporting the tax. 1040ez state tax form   You must report the tax on your nondeductible contributions on Form 5330. 1040ez state tax form Form 5330 includes a computation of the tax. 1040ez state tax form See the separate instructions for completing the form. 1040ez state tax form Elective Deferrals (401(k) Plans) Your qualified plan can include a cash or deferred arrangement under which participants can choose to have you contribute part of their before-tax compensation to the plan rather than receive the compensation in cash. 1040ez state tax form A plan with this type of arrangement is popularly known as a “401(k) plan. 1040ez state tax form ” (As a self-employed individual participating in the plan, you can contribute part of your before-tax net earnings from the business. 1040ez state tax form ) This contribution is called an “elective deferral” because participants choose (elect) to defer receipt of the money. 1040ez state tax form In general, a qualified plan can include a cash or deferred arrangement only if the qualified plan is one of the following plans. 1040ez state tax form A profit-sharing plan. 1040ez state tax form A money purchase pension plan in existence on June 27, 1974, that included a salary reduction arrangement on that date. 1040ez state tax form Partnership. 1040ez state tax form   A partnership can have a 401(k) plan. 1040ez state tax form Restriction on conditions of participation. 1040ez state tax form   The plan cannot require, as a condition of participation, that an employee complete more than 1 year of service. 1040ez state tax form Matching contributions. 1040ez state tax form   If your plan permits, you can make matching contributions for an employee who makes an elective deferral to your 401(k) plan. 1040ez state tax form For example, the plan might provide that you will contribute 50 cents for each dollar your participating employees choose to defer under your 401(k) plan. 1040ez state tax form Matching contributions are generally subject to the ACP test discussed earlier under Employee Contributions. 1040ez state tax form Nonelective contributions. 1040ez state tax form   You can also make contributions (other than matching contributions) for your participating employees without giving them the choice to take cash instead. 1040ez state tax form These are called nonelective contributions. 1040ez state tax form Employee compensation limit. 1040ez state tax form   No more than $255,000 of the employee's compensation can be taken into account when figuring contributions other than elective deferrals in 2013. 1040ez state tax form This limit is $260,000 in 2014. 1040ez state tax form SIMPLE 401(k) plan. 1040ez state tax form   If you had 100 or fewer employees who earned $5,000 or more in compensation during the preceding year, you may be able to set up a SIMPLE 401(k) plan. 1040ez state tax form A SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy plan requirements discussed earlier under Qualification Rules. 1040ez state tax form For details about SIMPLE 401(k) plans, see SIMPLE 401(k) Plan in chapter 3. 1040ez state tax form Distributions. 1040ez state tax form   Certain rules apply to distributions from 401(k) plans. 1040ez state tax form See Distributions From 401(k) Plans , later. 1040ez state tax form Limit on Elective Deferrals There is a limit on the amount an employee can defer each year under these plans. 1040ez state tax form This limit applies without regard to community property laws. 1040ez state tax form Your plan must provide that your employees cannot defer more than the limit that applies for a particular year. 1040ez state tax form For 2013 and 2014, the basic limit on elective deferrals is $17,500. 1040ez state tax form This limit applies to all salary reduction contributions and elective deferrals. 1040ez state tax form If, in conjunction with other plans, the deferral limit is exceeded, the difference is included in the employee's gross income. 1040ez state tax form Catch-up contributions. 1040ez state tax form   A 401(k) plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. 1040ez state tax form The catch-up contribution limit for 2013 and 2014 is $5,500. 1040ez state tax form Elective deferrals are not treated as catch-up contributions for 2013 until they exceed the $17,500 limit, the actual deferral percentage (ADP) test limit of section 401(k)(3), or the plan limit (if any). 1040ez state tax form However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. 1040ez state tax form The catch-up contribution limit. 1040ez state tax form The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. 1040ez state tax form Treatment of contributions. 1040ez state tax form   Your contributions to your own 401(k) plan are generally deductible by you for the year they are contributed to the plan. 1040ez state tax form Matching or nonelective contributions made to the plan are also deductible by you in the year of contribution. 1040ez state tax form Your employees' elective deferrals other than designated Roth contributions are tax free until distributed from the plan. 1040ez state tax form Elective deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. 1040ez state tax form Forfeiture. 1040ez state tax form   Employees have a nonforfeitable right at all times to their accrued benefit attributable to elective deferrals. 1040ez state tax form Reporting on Form W-2. 1040ez state tax form   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. 1040ez state tax form You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. 1040ez state tax form You must also include them in box 12. 1040ez state tax form Mark the “Retirement plan” checkbox in box 13. 1040ez state tax form For more information, see the Form W-2 instructions. 1040ez state tax form Automatic Enrollment Your 401(k) plan can have an automatic enrollment feature. 1040ez state tax form Under this feature, you can automatically reduce an employee's pay by a fixed percentage and contribute that amount to the 401(k) plan on his or her behalf unless the employee affirmatively chooses not to have his or her pay reduced or chooses to have it reduced by a different percentage. 1040ez state tax form These contributions are elective deferrals. 1040ez state tax form An automatic enrollment feature will encourage employees' saving for retirement and will help your plan pass nondiscrimination testing (if applicable). 1040ez state tax form For more information, see Publication 4674, Automatic Enrollment 401(k) Plans for Small Businesses. 1040ez state tax form Eligible automatic contribution arrangement. 1040ez state tax form   Under an eligible automatic contribution arrangement (EACA), a participant is treated as having elected to have the employer make contributions in an amount equal to a uniform percentage of compensation. 1040ez state tax form This automatic election will remain in place until the participant specifically elects not to have such deferral percentage made (or elects a different percentage). 1040ez state tax form There is no required deferral percentage. 1040ez state tax form Withdrawals. 1040ez state tax form   Under an EACA, you may allow participants to withdraw their automatic contributions to the plan if certain conditions are met. 1040ez state tax form The participant must elect the withdrawal no later than 90 days after the date of the first elective contributions under the EACA. 1040ez state tax form The participant must withdraw the entire amount of EACA default contributions, including any earnings thereon. 1040ez state tax form   If the plan allows withdrawals under the EACA, the amount of the withdrawal other than the amount of any designated Roth contributions must be included in the employee's gross income for the tax year in which the distribution is made. 1040ez state tax form The additional 10% tax on early distributions will not apply to the distribution. 1040ez state tax form Notice requirement. 1040ez state tax form   Under an EACA, employees must be given written notice of the terms of the EACA within a reasonable period of time before each plan year. 1040ez state tax form The notice must be written in a manner calculated to be understood by the average employee and be sufficiently accurate and comprehensive in order to apprise the employee of his or her rights and obligations under the EACA. 1040ez state tax form The notice must include an explanation of the employee's right to elect not to have elective contributions made on his or her behalf, or to elect a different percentage, and the employee must be given a reasonable period of time after receipt of the notice before the first elective contribution is made. 1040ez state tax form The notice also must explain how contributions will be invested in the absence of an investment election by the employee. 1040ez state tax form Qualified automatic contribution arrangement. 1040ez state tax form    A qualified automatic contribution arrangement (QACA) is a type of safe harbor plan. 1040ez state tax form It contains an automatic enrollment feature, and mandatory employer contributions are required. 1040ez state tax form If your plan includes a QACA, it will not be subject to the ADP test (discussed later) nor the top-heavy requirements (discussed earlier). 1040ez state tax form Additionally, your plan will not be subject to the actual contribution percentage (ACP) test if certain additional requirements are met. 1040ez state tax form Under a QACA, each employee who is eligible to participate in the plan will be treated as having elected to make elective deferral contributions equal to a certain default percentage of compensation. 1040ez state tax form In order to not have default elective deferrals made, an employee must make an affirmative election specifying a deferral percentage (including zero, if desired). 1040ez state tax form If an employee does not make an affirmative election, the default deferral percentage must meet the following conditions. 1040ez state tax form It must be applied uniformly. 1040ez state tax form It must not exceed 10%. 1040ez state tax form It must be at least 3% in the first plan year it applies to an employee and through the end of the following year. 1040ez state tax form It must increase to at least 4% in the following plan year. 1040ez state tax form It must increase to at least 5% in the following plan year. 1040ez state tax form It must increase to at least 6% in subsequent plan years. 1040ez state tax form Matching or nonelective contributions. 1040ez state tax form   Under the terms of the QACA, you must make either matching or nonelective contributions according to the following terms. 1040ez state tax form Matching contributions. 1040ez state tax form You must make matching contributions on behalf of each non-highly compensated employee in the following amounts. 1040ez state tax form An amount equal to 100% of elective deferrals, up to 1% of compensation. 1040ez state tax form An amount equal to 50% of elective deferrals, from 1% up to 6% of compensation. 1040ez state tax form Other formulas may be used as long as they are at least as favorable to non-highly compensated employees. 1040ez state tax form The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. 1040ez state tax form Nonelective contributions. 1040ez state tax form You must make nonelective contributions on behalf of every non-highly compensated employee eligible to participate in the plan, regardless of whether they elected to participate, in an amount equal to at least 3% of their compensation. 1040ez state tax form Vesting requirements. 1040ez state tax form   All accrued benefits attributed to matching or nonelective contributions under the QACA must be 100% vested for all employees who complete 2 years of service. 1040ez state tax form These contributions are subject to special withdrawal restrictions, discussed later. 1040ez state tax form Notice requirements. 1040ez state tax form   Each employee eligible to participate in the QACA must receive written notice of their rights and obligations under the QACA, within a reasonable period before each plan year. 1040ez state tax form The notice must be written in a manner calculated to be understood by the average employee, and it must be accurate and comprehensive. 1040ez state tax form The notice must explain their right to elect not to have elective contributions made on their behalf, or to have contributions made at a different percentage than the default percentage. 1040ez state tax form Additionally, the notice must explain how contributions will be invested in the absence of any investment election by the employee. 1040ez state tax form The employee must have a reasonable period of time after receiving the notice to make such contribution and investment elections prior to the first contributions under the QACA. 1040ez state tax form Treatment of Excess Deferrals If the total of an employee's deferrals is more than the limit for 2013, the employee can have the difference (called an excess deferral) paid out of any of the plans that permit these distributions. 1040ez state tax form He or she must notify the plan by April 15, 2014 (or an earlier date specified in the plan), of the amount to be paid from each plan. 1040ez state tax form The plan must then pay the employee that amount, plus earnings on the amount through the end of 2013, by April 15, 2014. 1040ez state tax form Excess withdrawn by April 15. 1040ez state tax form   If the employee takes out the excess deferral by April 15, 2014, it is not reported again by including it in the employee's gross income for 2014. 1040ez state tax form However, any income earned in 2013 on the excess deferral taken out is taxable in the tax year in which it is taken out. 1040ez state tax form The distribution is not subject to the additional 10% tax on early distributions. 1040ez state tax form   If the employee takes out part of the excess deferral and the income on it, the distribution is treated as made proportionately from the excess deferral and the income. 1040ez state tax form   Even if the employee takes out the excess deferral by April 15, the amount will be considered for purposes of nondiscrimination testing requirements of the plan, unless the distributed amount is for a non-highly compensated employee who participates in only one employer's 401(k) plan or plans. 1040ez state tax form Excess not withdrawn by April 15. 1040ez state tax form   If the employee does not take out the excess deferral by April 15, 2014, the excess, though taxable in 2013, is not included in the employee's cost basis in figuring the taxable amount of any eventual distributions under the plan. 1040ez state tax form In effect, an excess deferral left in the plan is taxed twice, once when contributed and again when distributed. 1040ez state tax form Also, if the employee's excess deferral is allowed to stay in the plan and the employee participates in no other employer's plan, the plan can be disqualified. 1040ez state tax form Reporting corrective distributions on Form 1099-R. 1040ez state tax form   Report corrective distributions of excess deferrals (including any earnings) on Form 1099-R. 1040ez state tax form For specific information about reporting corrective distributions, see the Instructions for Forms 1099-R and 5498. 1040ez state tax form Tax on excess contributions of highly compensated employees. 1040ez state tax form   The law provides tests to detect discrimination in a plan. 1040ez state tax form If tests, such as the actual deferral percentage test (ADP test) (see section 401(k)(3)) and the actual contribution percentage test (ACP test) (see section 401(m)(2)), show that contributions for highly compensated employees are more than the test limits for these contributions, the employer may have to pay a 10% excise tax. 1040ez state tax form Report the tax on Form 5330. 1040ez state tax form The ADP test does not apply to a safe harbor 401(k) plan (discussed next) nor to a QACA. 1040ez state tax form Also, the ACP test does not apply to these plans if certain additional requirements are met. 1040ez state tax form   The tax for the year is 10% of the excess contributions for the plan year ending in your tax year. 1040ez state tax form Excess contributions are elective deferrals, employee contributions, or employer matching or nonelective contributions that are more than the amount permitted under the ADP test or the ACP test. 1040ez state tax form   See Regulations sections 1. 1040ez state tax form 401(k)-2 and 1. 1040ez state tax form 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). 1040ez state tax form    If the plan fails the ADP or ACP testing, and the failure is not corrected by the end of the next plan year, the plan can be disqualified. 1040ez state tax form Safe harbor 401(k) plan. 1040ez state tax form If you meet the requirements for a safe harbor 401(k) plan, you do not have to satisfy the ADP test, nor the ACP test, if certain additional requirements are met. 1040ez state tax form For your plan to be a safe harbor plan, you must meet the following conditions. 1040ez state tax form Matching or nonelective contributions. 1040ez state tax form You must make matching or nonelective contributions according to one of the following formulas. 1040ez state tax form Matching contributions. 1040ez state tax form You must make matching contributions according to the following rules. 1040ez state tax form You must contribute an amount equal to 100% of each non-highly compensated employee's elective deferrals, up to 3% of compensation. 1040ez state tax form You must contribute an amount equal to 50% of each non-highly compensated employee's elective deferrals, from 3% up to 5% of compensation. 1040ez state tax form The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. 1040ez state tax form Nonelective contributions. 1040ez state tax form You must make nonelective contributions, without regard to whether the employee made elective deferrals, on behalf of all non-highly compensated employees eligible to participate in the plan, equal to at least 3% of the employee's compensation. 1040ez state tax form These mandatory matching and nonelective contributions must be immediately 100% vested and are subject to special withdrawal restrictions. 1040ez state tax form Notice requirement. 1040ez state tax form You must give eligible employees written notice of their rights and obligations with regard to contributions under the plan, within a reasonable period before the plan year. 1040ez state tax form The other requirements for a 401(k) plan, including withdrawal and vesting rules, must also be met for your plan to qualify as a safe harbor 401(k) plan. 1040ez state tax form Qualified Roth Contribution Program Under this program an eligible employee can designate all or a portion of his or her elective deferrals as after-tax Roth contributions. 1040ez state tax form Elective deferrals designated as Roth contributions must be maintained in a separate Roth account. 1040ez state tax form However, unlike other elective deferrals, designated Roth contributions are not excluded from employees' gross income, but qualified distributions from a Roth account are excluded from employees' gross income. 1040ez state tax form Elective Deferrals Under a qualified Roth contribution program, the amount of elective deferrals that an employee may designate as a Roth contribution is limited to the maximum amount of elective deferrals excludable from gross income for the year (for 2013 and 2014, $17,500 if under age 50 and $23,000 if age 50 or over) less the total amount of the employee's elective deferrals not designated as Roth contributions. 1040ez state tax form Designated Roth deferrals are treated the same as pre-tax elective deferrals for most purposes, including: The annual individual elective deferral limit (total of all designated Roth contributions and traditional, pre-tax elective deferrals) of $17,500 for 2013 and 2014, with an additional $5,500 if age 50 or over for 2013 and 2014, Determining the maximum employee and employer annual contributions of the lesser of 100% of compensation or $51,000 for 2013 ($52,000 for 2014), Nondiscrimination testing, Required distributions, and Elective deferrals not taken into account for purposes of deduction limits. 1040ez state tax form Qualified Distributions A qualified distribution is a distribution that is made after the employee's nonexclusion period and: On or after the employee attains age   59½, On account of the employee's being disabled, or On or after the employee's death. 1040ez state tax form An employee's nonexclusion period for a plan is the 5-tax-year period beginning with the earlier of the following tax years. 1040ez state tax form The first tax year in which the employee made a contribution to his or her Roth account in the plan, or If a rollover contribution was made to the employee's designated Roth account from a designated Roth account previously established for the employee under another plan, then the first tax year the employee made a designated Roth contribution to the previously established account. 1040ez state tax form Rollover. 1040ez state tax form   Beginning September 28, 2010, a rollover from another account can be made to a designated Roth account in the same plan. 1040ez state tax form For additional information on these in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. 1040ez state tax form R. 1040ez state tax form B. 1040ez state tax form 872, available at www. 1040ez state tax form irs. 1040ez state tax form gov/irb/2010-51_IRB/ar11. 1040ez state tax form html, and Notice 2013-74. 1040ez state tax form A distribution from a designated Roth account can only be rolled over to another designated Roth account or a Roth IRA. 1040ez state tax form Rollover amounts do not apply toward the annual deferral limit. 1040ez state tax form Reporting Requirements You must report a contribution to a Roth account on Form W-2 and a distribution from a Roth account on Form 1099-R. 1040ez state tax form See the Form W-2 and 1099-R instructions for detailed information. 1040ez state tax form Distributions Amounts paid to plan participants from a qualified plan are called distributions. 1040ez state tax form Distributions may be nonperiodic, such as lump-sum distributions, or periodic, such as annuity payments. 1040ez state tax form Also, certain loans may be treated as distributions. 1040ez state tax form See Loans Treated as Distributions in Publication 575. 1040ez state tax form Required Distributions A qualified plan must provide that each participant will either: Receive his or her entire interest (benefits) in the plan by the required beginning date (defined later), or Begin receiving regular periodic distributions by the required beginning date in annual amounts calculated to distribute the participant's entire interest (benefits) over his or her life expectancy or over the joint life expectancy of the participant and the designated beneficiary (or over a shorter period). 1040ez state tax form These distribution rules apply individually to each qualified plan. 1040ez state tax form You cannot satisfy the requirement for one plan by taking a distribution from another. 1040ez state tax form The plan must provide that these rules override any inconsistent distribution options previously offered. 1040ez state tax form Minimum distribution. 1040ez state tax form   If the account balance of a qualified plan participant is to be distributed (other than as an annuity), the plan administrator must figure the minimum amount required to be distributed each distribution calendar year. 1040ez state tax form This minimum is figured by dividing the account balance by the applicable life expectancy. 1040ez state tax form The plan administrator can use the life expectancy tables in Appendix C of Publication 590 for this purpose. 1040ez state tax form For more information on figuring the minimum distribution, see Tax on Excess Accumulation in Publication 575. 1040ez state tax form Required beginning date. 1040ez state tax form   Generally, each participant must receive his or her entire benefits in the plan or begin to receive periodic distributions of benefits from the plan by the required beginning date. 1040ez state tax form   A participant must begin to receive distributions from his or her qualified retirement plan by April 1 of the first year after the later of the following years. 1040ez state tax form Calendar year in which he or she reaches age 70½. 1040ez state tax form Calendar year in which he or she retires from employment with the employer maintaining the plan. 1040ez state tax form However, the plan may require the participant to begin receiving distributions by April 1 of the year after the participant reaches age 70½ even if the participant has not retired. 1040ez state tax form   If the participant is a 5% owner of the employer maintaining the plan, the participant must begin receiving distributions by April 1 of the first year after the calendar year in which the participant reached age 70½. 1040ez state tax form For more information, see Tax on Excess Accumulation in Publication 575. 1040ez state tax form Distributions after the starting year. 1040ez state tax form   The distribution required to be made by April 1 is treated as a distribution for the starting year. 1040ez state tax form (The starting year is the year in which the participant meets (1) or (2) above, whichever applies. 1040ez state tax form ) After the starting year, the participant must receive the required distribution for each year by December 31 of that year. 1040ez state tax form If no distribution is made in the starting year, required distributions for 2 years must be made in the next year (one by April 1 and one by December 31). 1040ez state tax form Distributions after participant's death. 1040ez state tax form   See Publication 575 for the special rules covering distributions made after the death of a participant. 1040ez state tax form Distributions From 401(k) Plans Generally, distributions cannot be made until one of the following occurs. 1040ez state tax form The employee retires, dies, becomes disabled, or otherwise severs employment. 1040ez state tax form The plan ends and no other defined contribution plan is established or continued. 1040ez state tax form In the case of a 401(k) plan that is part of a profit-sharing plan, the employee reaches age 59½ or suffers financial hardship. 1040ez state tax form For the rules on hardship distributions, including the limits on them, see Regulations section 1. 1040ez state tax form 401(k)-1(d). 1040ez state tax form The employee becomes eligible for a qualified reservist distribution (defined next). 1040ez state tax form Certain distributions listed above may be subject to the tax on early distributions discussed later. 1040ez state tax form Qualified reservist distributions. 1040ez state tax form   A qualified reservist distribution is a distribution from an IRA or an elective deferral account made after September 11, 2001, to a military reservist or a member of the National Guard who has been called to active duty for at least 180 days or for an indefinite period. 1040ez state tax form All or part of a qualified reservist distribution can be recontributed to an IRA. 1040ez state tax form The additional 10% tax on early distributions does not apply to a qualified reservist distribution. 1040ez state tax form Tax Treatment of Distributions Distributions from a qualified plan minus a prorated part of any cost basis are subject to income tax in the year they are distributed. 1040ez state tax form Since most recipients have no cost basis, a distribution is generally fully taxable. 1040ez state tax form An exception is a distribution that is properly rolled over as discussed under Rollover, next. 1040ez state tax form The tax treatment of distributions depends on whether they are made periodically over several years or life (periodic distributions) or are nonperiodic distributions. 1040ez state tax form See Taxation of Periodic Payments and Taxation of Nonperiodic Payments in Publication 575 for a detailed description of how distributions are taxed, including the 10-year tax option or capital gain treatment of a lump-sum distribution. 1040ez state tax form Note. 1040ez state tax form A recipient of a distribution from a designated Roth account will have a cost basis since designated Roth contributions are made on an after-tax basis. 1040ez state tax form Also, a distribution from a designated Roth account is entirely tax-free if certain conditions are met. 1040ez state tax form See Qualified distributions under Qualified Roth Contribution Program, earlier. 1040ez state tax form Rollover. 1040ez state tax form   The recipient of an eligible rollover distribution from a qualified plan can defer the tax on it by rolling it over into a traditional IRA or another eligible retirement plan. 1040ez state tax form However, it may be subject to withholding as discussed under Withholding requirement, later. 1040ez state tax form A rollover can also be made to a Roth IRA, in which case, any previously untaxed amounts are includible in gross income unless the rollover is from a designated Roth account. 1040ez state tax form Eligible rollover distribution. 1040ez state tax form   This is a distribution of all or any part of an employee's balance in a qualified retirement plan that is not any of the following. 1040ez state tax form A required minimum distribution. 1040ez state tax form See Required Distributions , earlier. 1040ez state tax form Any of a series of substantially equal payments made at least once a year over any of the following periods. 1040ez state tax form The employee's life or life expectancy. 1040ez state tax form The joint lives or life expectancies of the employee and beneficiary. 1040ez state tax form A period of 10 years or longer. 1040ez state tax form A hardship distribution. 1040ez state tax form The portion of a distribution that represents the return of an employee's nondeductible contributions to the plan. 1040ez state tax form See Employee Contributions , earlier, and Rollover of nontaxable amounts, next. 1040ez state tax form Loans treated as distributions. 1040ez state tax form Dividends on employer securities. 1040ez state tax form The cost of any life insurance coverage provided under a qualified retirement plan. 1040ez state tax form Similar items designated by the IRS in published guidance. 1040ez state tax form See, for example, the Instructions for Forms 1099-R and 5498. 1040ez state tax form Rollover of nontaxable amounts. 1040ez state tax form   You may be able to roll over the nontaxable part of a distribution to another qualified retirement plan or a section 403(b) plan, or to an IRA. 1040ez state tax form If the rollover is to a qualified retirement plan or a section 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover, the transfer must be made through a direct (trustee-to-trustee) rollover. 1040ez state tax form If the rollover is to an IRA, the transfer can be made by any rollover method. 1040ez state tax form Note. 1040ez state tax form A distribution from a designated Roth account can be rolled over to another designated Roth account or to a Roth IRA. 1040ez state tax form If the rollover is to a Roth IRA, it can be rolled over by any rollover method, but if the rollover is to another designated Roth account, it must be rolled over directly (trustee-to-trustee). 1040ez state tax form More information. 1040ez state tax form   For more information about rollovers, see Rollovers in Pubs. 1040ez state tax form 575 and 590. 1040ez state tax form Withholding requirement. 1040ez state tax form   If, during a year, a qualified plan pays to a participant one or more eligible rollover distributions (defined earlier) that are reasonably expected to total $200 or more, the payor must withhold 20% of the taxable portion of each distribution for federal income tax. 1040ez state tax form Exceptions. 1040ez state tax form   If, instead of having the distribution paid to him or her, the participant chooses to have the plan pay it directly to an IRA or another eligible retirement plan (a direct rollover), no withholding is required. 1040ez state tax form   If the distribution is not an eligible rollover distribution, defined earlier, the 20% withholding requirement does not apply. 1040ez state tax form Other withholding rules apply to distributions that are not eligible rollover distributions, such as long-term periodic distributions and required distributions (periodic or nonperiodic). 1040ez state tax form However, the participant can choose not to have tax withheld from these distributions. 1040ez state tax form If the participant does not make this choice, the following withholding rules apply. 1040ez state tax form For periodic distributions, withholding is based on their treatment as wages. 1040ez state tax form For nonperiodic distributions, 10% of the taxable part is withheld. 1040ez state tax form Estimated tax payments. 1040ez state tax form   If no income tax is withheld or not enough tax is withheld, the recipient of a distribution may have to make estimated tax payments. 1040ez state tax form For more information, see Withholding Tax and Estimated Tax in Publication 575. 1040ez state tax form Section 402(f) Notice. 1040ez state tax form   If a distribution is an eligible rollover distribution, as defined earlier, you must provide a written notice to the recipient that explains the following rules regarding such distributions. 1040ez state tax form That the distribution may be directly transferred to an eligible retirement plan and information about which distributions are eligible for this direct transfer. 1040ez state tax form That tax will be withheld from the distribution if it is not directly transferred to an eligible retirement plan. 1040ez state tax form That the distribution will not be subject to tax if transferred to an eligible retirement plan within 60 days after the date the recipient receives the distribution. 1040ez state tax form Certain other rules that may be applicable. 1040ez state tax form   Notice 2009-68, 2009-39 I. 1040ez state tax form R. 1040ez state tax form B. 1040ez state tax form 423, available at www. 1040ez state tax form irs. 1040ez state tax form gov/irb/2009-39_IRB/ar14. 1040ez state tax form html, contains two updated safe harbor section 402(f) notices that plan administrators may provide recipients of eligible rollover distributions. 1040ez state tax form If the plan allows in-plan Roth rollovers, the 402(f) notice must be amended to reflect this. 1040ez state tax form Notice 2010-84 contains guidance on how to modify a 402(f) notice for in-plan Roth rollovers. 1040ez state tax form Timing of notice. 1040ez state tax form   The notice generally must be provided no less than 30 days and no more than 180 days before the date of a distribution. 1040ez state tax form Method of notice. 1040ez state tax form   The written notice must be provided individually to each distributee of an eligible rollover distribution. 1040ez state tax form Posting of the notice is not sufficient. 1040ez state tax form However, the written requirement may be satisfied through the use of electronic media if certain additional conditions are met. 1040ez state tax form See Regulations section 1. 1040ez state tax form 401(a)-21. 1040ez state tax form Tax on failure to give notice. 1040ez state tax form   Failure to give a 402(f) notice will result in a tax of $100 for each failure, with a total not exceeding $50,000 per calendar year. 1040ez state tax form The tax will not be imposed if it is shown that such failure is due to reasonable cause and not to willful neglect. 1040ez state tax form Tax on Early Distributions If a distribution is made to an employee under the plan before he or she reaches age 59½, the employee may have to pay a 10% additional tax on the distribution. 1040ez state tax form This tax applies to the amount received that the employee must include in income. 1040ez state tax form Exceptions. 1040ez state tax form   The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances. 1040ez state tax form Made to a beneficiary (or to the estate of the employee) on or after the death of the employee. 1040ez state tax form Made due to the employee having a qualifying disability. 1040ez state tax form Made as part of a series of substantially equal periodic payments beginning after separation from service and made at least annually for the life or life expectancy of the employee or the joint lives or life expectancies of the employee and his or her designated beneficiary. 1040ez state tax form (The payments under this exception, except in the case of death or disability, must continue for at least 5 years or until the employee reaches age 59½, whichever is the longer period. 1040ez state tax form ) Made to an employee after separation from service if the separation occurred during o
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Eight Tips for Taxpayers Who Receive an IRS Notice

IRS Summertime Tax Tip 2011-22, August 24, 2011

Every year the Internal Revenue Service sends millions of letters and notices to taxpayers, but that doesn’t mean you need to worry. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox.

  1. Don’t panic. Many of these letters can be dealt with simply and painlessly.

  2. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.

  3. Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry.

  4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.

  5. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.

  6. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left part of the notice. Allow at least 30 days for a response.

  7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right corner of the notice. Have a copy of your tax return and the correspondence available when you call.

  8. It’s important that you keep copies of any correspondence with your records.

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. Information about penalties and interest charges is available in Publication 17, Your Federal Income Tax for Individuals. Both publications are available at www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links:

  • Publication 594, The IRS Collection Process (PDF)
  • Publication 17, Your Federal Income Tax for Individuals (PDF)

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Page Last Reviewed or Updated: 22-May-2013

The 1040ez State Tax Form

1040ez state tax form 3. 1040ez state tax form   Filing Information for Individuals in Certain U. 1040ez state tax form S. 1040ez state tax form Possessions Table of Contents American SamoaWhere To Get Forms and Information Which Returns To File Special Rules for American Samoa Double Taxation The Commonwealth of Puerto RicoWhere To Get Forms and Information Which Returns To File Special Rules for Puerto Rico Double Taxation The Commonwealth of the Northern Mariana IslandsWhere To Get Forms and Information Which Return To File Special Rules for the CNMI Double Taxation GuamWhere To Get Forms and Information Which Return To File Special Rules for Guam Double Taxation The U. 1040ez state tax form S. 1040ez state tax form Virgin IslandsWhere To Get Forms and Information Which Return To File Special Rules for the USVI Double Taxation If you have income from American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, you may have to file a tax return with the tax department of that possession. 1040ez state tax form Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. 1040ez state tax form S. 1040ez state tax form Internal Revenue Service. 1040ez state tax form This chapter covers the general rules for filing returns in the five possessions. 1040ez state tax form You must first determine if you are a bona fide resident of the relevant possession. 1040ez state tax form See chapter 1 for a discussion of the requirements you must meet. 1040ez state tax form You should ask for forms and advice about the filing of possession tax returns from that possession's tax department, not the Internal Revenue Service. 1040ez state tax form Contact information is listed in this chapter under the heading for each possession. 1040ez state tax form American Samoa American Samoa has its own separate and independent tax system. 1040ez state tax form Although its tax laws are modeled on the U. 1040ez state tax form S. 1040ez state tax form Internal Revenue Code, there are certain differences. 1040ez state tax form Where To Get Forms and Information Requests for advice about matters connected with Samoan taxation should be sent to: American Samoa Government Tax Office  Executive Office Building First Floor Pago Pago, AS 96799 The phone number is (684) 633-4181. 1040ez state tax form The fax number is (684) 633-1513. 1040ez state tax form You can get forms and publications at www. 1040ez state tax form americansamoa. 1040ez state tax form gov. 1040ez state tax form The addresses and phone numbers listed above are subject to change. 1040ez state tax form Which Returns To File Your residency status and your source of income with regard to American Samoa determine whether you file your return and pay your tax to American Samoa, to the United States, or to both. 1040ez state tax form In addition to the information below that is categorized by residency status, the Special Rules for American Samoa section (later) contains important information for determining the correct forms to file. 1040ez state tax form Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. 1040ez state tax form S. 1040ez state tax form tax on their American Samoa source income. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien. 1040ez state tax form   If you are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. 1040ez state tax form An American Samoa tax return reporting your gross income from worldwide sources. 1040ez state tax form If you report non-American Samoa source income on your American Samoa tax return, you can claim a credit against your American Samoa tax liability for income taxes paid on that income to the United States, a foreign country, or another possession. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. 1040ez state tax form However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. 1040ez state tax form S. 1040ez state tax form Government employees under Special Rules for American Samoa, later). 1040ez state tax form To exclude American Samoa source income, attach a completed Form 4563 to your U. 1040ez state tax form S. 1040ez state tax form tax return (see Form 4563 for more information). 1040ez state tax form If you are excluding American Samoa source income on your U. 1040ez state tax form S. 1040ez state tax form tax return, you will not be allowed any deductions from gross income or credits against tax that are directly or indirectly allocable to the exempt income. 1040ez state tax form For more information, see Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form Nonresident alien. 1040ez state tax form   If you are a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. 1040ez state tax form An American Samoa tax return reporting worldwide income. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040, U. 1040ez state tax form S. 1040ez state tax form Individual Income Tax Return) reporting income from worldwide sources, but excluding American Samoa source income other than amounts for services performed as an employee of the United States or any of its agencies. 1040ez state tax form For more information, see U. 1040ez state tax form S. 1040ez state tax form Government employees under Special Rules for American Samoa, later. 1040ez state tax form To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. 1040ez state tax form S. 1040ez state tax form tax return (see Form 4563 , below, for more information). 1040ez state tax form For all other tax purposes, however, you will be treated as a nonresident alien individual. 1040ez state tax form 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. 1040ez state tax form There are also limitations on what deductions and credits are allowed. 1040ez state tax form See Publication 519 for more information. 1040ez state tax form Form 4563. 1040ez state tax form   If you must file a U. 1040ez state tax form S. 1040ez state tax form income tax return and you qualify to exclude any of your income from American Samoa, claim the exclusion by completing Form 4563 and attaching it to your Form 1040. 1040ez state tax form Form 4563 cannot be filed by itself. 1040ez state tax form There is an example of a filled-in Form 4563 in chapter 5. 1040ez state tax form   If you are a bona fide resident of American Samoa during the entire tax year and you are not including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 4563) to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 4563) to: Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. 1040ez state tax form Self-employment tax. 1040ez state tax form   If you are not required to file a U. 1040ez state tax form S. 1040ez state tax form tax return but have income that is effectively connected with a trade or business in American Samoa, you must file Form 1040-SS with the United States. 1040ez state tax form On this form you will report your self-employment income to the United States and, if necessary, pay self-employment tax on that income. 1040ez state tax form Additional Medicare Tax. 1040ez state tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040ez state tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040ez state tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form Net Investment Income Tax. 1040ez state tax form   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. 1040ez state tax form 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040ez state tax form The NIIT will apply to a bona fide resident of American Samoa if a taxpayer has modified adjusted gross income from sources outside of American Samoa that exceeds a specified threshold amount, e. 1040ez state tax form g. 1040ez state tax form , $200,000 for single filers. 1040ez state tax form The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040ez state tax form See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. 1040ez state tax form Estimated tax payments. 1040ez state tax form   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES, Estimated Tax for Individuals. 1040ez state tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040ez state tax form irs. 1040ez state tax form gov/e-pay. 1040ez state tax form   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. 1040ez state tax form Not a Bona Fide Resident of American Samoa An individual who is not a bona fide resident of American Samoa for the tax year generally files both U. 1040ez state tax form S. 1040ez state tax form and American Samoa tax returns, and claims a foreign tax credit on the U. 1040ez state tax form S. 1040ez state tax form return for taxes paid to American Samoa. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien. 1040ez state tax form   If you are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien but not a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. 1040ez state tax form An American Samoa tax return reporting only your income from sources within American Samoa. 1040ez state tax form Wages for services performed in American Samoa, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from sources within American Samoa. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return reporting your income from worldwide sources. 1040ez state tax form You can take a credit against your U. 1040ez state tax form S. 1040ez state tax form tax liability if you paid income taxes to American Samoa (or other possession or foreign country) and reported income from those sources on your U. 1040ez state tax form S. 1040ez state tax form tax return. 1040ez state tax form De minimis exception to determining source of income. 1040ez state tax form   In certain situations you will not have income from a possession. 1040ez state tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040ez state tax form Nonresident alien. 1040ez state tax form   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of American Samoa for the entire tax year, you generally must file the following returns. 1040ez state tax form An American Samoa tax return reporting only your income from sources within American Samoa. 1040ez state tax form In this situation, wages for services performed in American Samoa, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from sources within American Samoa. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040NR, U. 1040ez state tax form S. 1040ez state tax form Nonresident Alien Income Tax Return) reporting U. 1040ez state tax form S. 1040ez state tax form source income according to the rules for a nonresident alien. 1040ez state tax form See the Instructions for Form 1040NR. 1040ez state tax form   If you are not a bona fide resident of American Samoa during the entire tax year, and you are not including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to: Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. 1040ez state tax form Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. 1040ez state tax form Civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces ), your tax residence is American Samoa, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. 1040ez state tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from American Samoa is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040ez state tax form If you have income from American Samoa other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), contact the local tax administration for guidance. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Government employees. 1040ez state tax form   If you are employed in American Samoa by the U. 1040ez state tax form S. 1040ez state tax form Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. 1040ez state tax form Whether you are subject to tax by American Samoa on your non-American Samoa source income depends on your status in American Samoa as a bona fide resident. 1040ez state tax form   Wages and salaries paid to employees of the U. 1040ez state tax form S. 1040ez state tax form Government and its agencies are also subject to U. 1040ez state tax form S. 1040ez state tax form federal income tax. 1040ez state tax form These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. 1040ez state tax form   For tax years ending after April 9, 2008, wages and salaries paid to bona fide residents by the Government of American Samoa can be excluded on the U. 1040ez state tax form S. 1040ez state tax form tax return. 1040ez state tax form   If you report government wages on both your U. 1040ez state tax form S. 1040ez state tax form and American Samoa tax returns, you can take a credit on your U. 1040ez state tax form S. 1040ez state tax form tax return for income taxes paid or accrued to American Samoa. 1040ez state tax form Figure the credit on Form 1116, and attach that form to your U. 1040ez state tax form S. 1040ez state tax form tax return, Form 1040. 1040ez state tax form Show your wages paid for services performed in American Samoa on Form 1116, line 1a, enter “American Samoa” on line g, and check box b above Part I. 1040ez state tax form Moving expense deduction. 1040ez state tax form   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. 1040ez state tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040ez state tax form S. 1040ez state tax form earned income. 1040ez state tax form   If your move was to American Samoa, report your deduction for moving expenses as follows. 1040ez state tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your American Samoa tax return. 1040ez state tax form If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. 1040ez state tax form S. 1040ez state tax form tax returns. 1040ez state tax form Also, for purposes of a tax credit against your U. 1040ez state tax form S. 1040ez state tax form tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. 1040ez state tax form   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. 1040ez state tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. 1040ez state tax form See Double Taxation in chapter 4. 1040ez state tax form The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. 1040ez state tax form Although it is modeled after the U. 1040ez state tax form S. 1040ez state tax form system, there are differences in law and tax rates. 1040ez state tax form Where To Get Forms and Information Requests for information about the filing of Puerto Rico tax returns should be addressed to: Departamento de Hacienda Negociado de Asistencia Contributiva  P. 1040ez state tax form O. 1040ez state tax form Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. 1040ez state tax form    To obtain Puerto Rico tax forms, contact the Forms and Publications Division Office at the above address or call (787) 722-0216, option #7. 1040ez state tax form You can access the Hacienda website at www. 1040ez state tax form hacienda. 1040ez state tax form gobierno. 1040ez state tax form pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. 1040ez state tax form gobierno. 1040ez state tax form pr. 1040ez state tax form The addresses and phone numbers listed above are subject to change. 1040ez state tax form Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. 1040ez state tax form The income reported on each return depends on your residency status in Puerto Rico. 1040ez state tax form To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. 1040ez state tax form Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien. 1040ez state tax form   If you are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. 1040ez state tax form A Puerto Rico tax return reporting income from worldwide sources. 1040ez state tax form If you report U. 1040ez state tax form S. 1040ez state tax form source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return reporting income from worldwide sources, but excluding Puerto Rico source income. 1040ez state tax form However, see U. 1040ez state tax form S. 1040ez state tax form Government employees under Special Rules for Puerto Rico, later, for an exception. 1040ez state tax form If you are excluding Puerto Rico income on your U. 1040ez state tax form S. 1040ez state tax form tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. 1040ez state tax form For more information, see Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form If all of your income is from Puerto Rico sources, you are not required to file a U. 1040ez state tax form S. 1040ez state tax form tax return. 1040ez state tax form However, if you have self-employment income, see Self-employment tax , later. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form citizen only. 1040ez state tax form   If you are a U. 1040ez state tax form S. 1040ez state tax form citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. 1040ez state tax form In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U. 1040ez state tax form S. 1040ez state tax form Government or its agencies) that you earned before the date you changed your residence. 1040ez state tax form For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. 1040ez state tax form Nonresident alien. 1040ez state tax form   If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. 1040ez state tax form A Puerto Rico tax return reporting income from worldwide sources. 1040ez state tax form If you report U. 1040ez state tax form S. 1040ez state tax form source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rico source income (other than amounts for services performed as an employee of the United States or any of its agencies). 1040ez state tax form For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. 1040ez state tax form 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. 1040ez state tax form There are also limitations on what deductions and credits are allowed. 1040ez state tax form See Publication 519 for more information. 1040ez state tax form Self-employment tax. 1040ez state tax form   If you have no U. 1040ez state tax form S. 1040ez state tax form filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040ez state tax form Additional Medicare Tax. 1040ez state tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040ez state tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040ez state tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form Net Investment Income Tax. 1040ez state tax form   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. 1040ez state tax form 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040ez state tax form The NIIT will apply to a bona fide resident of Puerto Rico if a taxpayer has modified adjusted gross income from sources outside of Puerto Rico that exceeds a specified threshold amount, e. 1040ez state tax form g. 1040ez state tax form , $200,000 for single filers. 1040ez state tax form The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040ez state tax form See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. 1040ez state tax form Estimated tax payments. 1040ez state tax form   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES (or Form 1040-ES(PR)). 1040ez state tax form   To pay by check or money order, send your payment with the Form 1040-ES (or Form 1040-ES(PR)) payment voucher to: Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040ez state tax form irs. 1040ez state tax form gov/e-pay. 1040ez state tax form   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. 1040ez state tax form Not a Bona Fide Resident of Puerto Rico An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien. 1040ez state tax form   If you are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. 1040ez state tax form A Puerto Rico tax return reporting only your income from Puerto Rico sources. 1040ez state tax form Wages for services performed in Puerto Rico, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from Puerto Rico sources. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return reporting income from worldwide sources. 1040ez state tax form Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is not exempt from U. 1040ez state tax form S. 1040ez state tax form taxes (see chapter 4 for more information). 1040ez state tax form Nonresident alien. 1040ez state tax form   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns. 1040ez state tax form A Puerto Rico tax return reporting only your income from Puerto Rico sources. 1040ez state tax form Wages for services performed in Puerto Rico, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from Puerto Rico sources. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040NR) according to the rules for a nonresident alien. 1040ez state tax form See the Instructions for Form 1040NR. 1040ez state tax form De minimis exception to determining source of income. 1040ez state tax form   In certain situations you will not have income from a possession. 1040ez state tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040ez state tax form Use the addresses listed below to file your U. 1040ez state tax form S. 1040ez state tax form and Puerto Rico income tax returns. 1040ez state tax form If you are not including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to: Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA If you request a refund on your Puerto Rico return, send your Puerto Rico tax return and all attachments to: Departamento de Hacienda P. 1040ez state tax form O. 1040ez state tax form Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. 1040ez state tax form O. 1040ez state tax form Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. 1040ez state tax form S. 1040ez state tax form and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Government employees. 1040ez state tax form   Wages and cost-of-living allowances paid by the U. 1040ez state tax form S. 1040ez state tax form Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. 1040ez state tax form However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. 1040ez state tax form S. 1040ez state tax form tax. 1040ez state tax form In order to claim this exclusion, you must: Include with your Puerto Rico tax return evidence to show the amount received during the year, and Be in full compliance with your Puerto Rico tax responsibilities. 1040ez state tax form   These wages are also subject to U. 1040ez state tax form S. 1040ez state tax form tax, but the cost-of-living allowances are excludable. 1040ez state tax form A foreign tax credit is available in order to avoid double taxation. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. 1040ez state tax form Civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces ), your tax residence is Puerto Rico, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. 1040ez state tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Puerto Rico is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040ez state tax form If you have income from Puerto Rico other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1 ), contact the Hacienda for guidance. 1040ez state tax form Income from sources outside Puerto Rico and the United States. 1040ez state tax form   If you are a U. 1040ez state tax form S. 1040ez state tax form citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. 1040ez state tax form In addition to your Puerto Rico and U. 1040ez state tax form S. 1040ez state tax form tax returns, you may also have to file a return with the country or possession from which your outside income was derived. 1040ez state tax form To avoid double taxation, a foreign tax credit is generally available for either the U. 1040ez state tax form S. 1040ez state tax form or Puerto Rico return. 1040ez state tax form Example. 1040ez state tax form Thomas Red is a bona fide resident of Puerto Rico and a U. 1040ez state tax form S. 1040ez state tax form citizen. 1040ez state tax form He traveled to the Dominican Republic and worked in the construction industry for 1 month. 1040ez state tax form His wages were $20,000. 1040ez state tax form Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. 1040ez state tax form He may also have to file a tax return with the Dominican Republic. 1040ez state tax form Moving expense deduction. 1040ez state tax form   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. 1040ez state tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040ez state tax form S. 1040ez state tax form earned income. 1040ez state tax form   If your move was to Puerto Rico, report your deduction for moving expenses as follows. 1040ez state tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rico tax return. 1040ez state tax form If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. 1040ez state tax form S. 1040ez state tax form tax returns. 1040ez state tax form Also, for purposes of a tax credit against your U. 1040ez state tax form S. 1040ez state tax form tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. 1040ez state tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040ez state tax form Additional child tax credit. 1040ez state tax form   If you are not required to file a U. 1040ez state tax form S. 1040ez state tax form income tax return, this credit is available only if you meet all three of the following conditions. 1040ez state tax form You were a bona fide resident of Puerto Rico during the entire tax year. 1040ez state tax form Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. 1040ez state tax form You had three or more qualifying children. 1040ez state tax form (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. 1040ez state tax form ) If your income exceeds certain levels, you may be disqualified from receiving this credit. 1040ez state tax form Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. 1040ez state tax form Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. 1040ez state tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. 1040ez state tax form See Double Taxation in chapter 4. 1040ez state tax form The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its own tax system based partly on the same tax laws and tax rates that apply to the United States and partly on local taxes imposed by the CNMI government. 1040ez state tax form Where To Get Forms and Information Requests for advice about CNMI residency and tax matters should be addressed to: Commonwealth of the Northern Mariana Islands  Division of Revenue and Taxation P. 1040ez state tax form O. 1040ez state tax form Box 5234 CHRB Dandan Commercial Center First Floor Rm #8  Saipan, MP 96950 You can order forms and publications by calling (670) 664-1000. 1040ez state tax form You can order forms and publications through the fax at (670) 664-1015. 1040ez state tax form You can get forms and publications at www. 1040ez state tax form cnmidof. 1040ez state tax form net. 1040ez state tax form The addresses and phone numbers listed above are subject to change. 1040ez state tax form Which Return To File In general, all individuals with income from the CNMI will file only one return, either to the CNMI or to the United States. 1040ez state tax form Your residency status with regard to the CNMI determines which return you will file. 1040ez state tax form Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. 1040ez state tax form Bona Fide Resident of the CNMI If you are a U. 1040ez state tax form S. 1040ez state tax form citizen, resident alien, or nonresident alien and a bona fide resident of the CNMI during the entire tax year, file your income tax return with the CNMI. 1040ez state tax form Include income from worldwide sources on your CNMI return. 1040ez state tax form In determining your total tax payments, include all income tax withheld by either the CNMI or the United States, any credit for an overpayment of income tax to either the CNMI or the United States, and any payments of estimated tax to either the CNMI or the United States. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form Generally, if you properly file your return with, and fully pay your income tax to, the CNMI, then you are not liable for filing an income tax return with, or for paying tax to, the United States for the tax year. 1040ez state tax form However, if you were self-employed in 2013, see Self-employment tax , later. 1040ez state tax form Example. 1040ez state tax form David Gold was a bona fide resident of the CNMI for 2013. 1040ez state tax form He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. 1040ez state tax form S. 1040ez state tax form corporations that carry on business mainly in the United States. 1040ez state tax form He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. 1040ez state tax form He reports his total income of $34,000 on the CNMI return. 1040ez state tax form   If you are a bona fide resident of the CNMI for the entire tax year, send your return and all attachments to the Division of Revenue and Taxation at the address given earlier. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the CNMI) If you have income from sources within the CNMI and are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien, but you are not a bona fide resident of the CNMI during the entire tax year, file your income tax return with the United States. 1040ez state tax form Include income from worldwide sources on your U. 1040ez state tax form S. 1040ez state tax form return. 1040ez state tax form In determining your total tax payments, include all income tax withheld by either the United States or the CNMI, any credit for an overpayment of income tax to either the United States or the CNMI, and any payments of estimated tax to either the United States or the CNMI. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form Note. 1040ez state tax form You may also need to complete Form 5074. 1040ez state tax form You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. 1040ez state tax form Form 5074. 1040ez state tax form   If you file a U. 1040ez state tax form S. 1040ez state tax form income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within the CNMI. 1040ez state tax form   The United States and the CNMI use this form to divide your income taxes. 1040ez state tax form   There is an example of a filled-in Form 5074 in chapter 5. 1040ez state tax form De minimis exception to determining source of income. 1040ez state tax form   In certain situations you will not have income from a possession. 1040ez state tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040ez state tax form Citizen or resident alien of the United States but not a bona fide resident of the CNMI. 1040ez state tax form   If you are a citizen or resident alien of the United States but not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to: Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the CNMI for the entire tax year, you generally must file the following returns. 1040ez state tax form A CNMI tax return reporting only your income from sources within the CNMI. 1040ez state tax form In this situation, wages for services performed in the CNMI, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from sources within the CNMI. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040NR) reporting U. 1040ez state tax form S. 1040ez state tax form source income according to the rules for a nonresident alien. 1040ez state tax form See the instructions for Form 1040NR. 1040ez state tax form If you are not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to:  Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA Send your CNMI tax return and all attachments to:  Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040ez state tax form O. 1040ez state tax form Box 5234 CHRB Saipan, MP 96950 Citizen of the CNMI If you are a citizen of the CNMI (meaning that you were born or naturalized in the CNMI) but not otherwise a U. 1040ez state tax form S. 1040ez state tax form citizen or a U. 1040ez state tax form S. 1040ez state tax form resident alien during the tax year, file your income tax return with the CNMI. 1040ez state tax form Include income from worldwide sources on your CNMI return. 1040ez state tax form Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040ez state tax form O. 1040ez state tax form Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. 1040ez state tax form Joint return. 1040ez state tax form   If you file a joint return, file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040ez state tax form If the spouse with the greater AGI is a bona fide resident of the CNMI during the entire tax year, file the joint return with the CNMI. 1040ez state tax form If the spouse with the greater AGI is a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien but not a bona fide resident of the CNMI during the entire tax year, file your joint return with the United States. 1040ez state tax form For this purpose, income is determined without regard to community property laws. 1040ez state tax form Example. 1040ez state tax form Marsha Blue, a U. 1040ez state tax form S. 1040ez state tax form citizen, was a resident of the United States, and her spouse, a citizen of the CNMI, was a bona fide resident of the CNMI during the entire tax year. 1040ez state tax form Marsha earned $65,000 as a computer programmer in the United States. 1040ez state tax form Her spouse earned $20,000 as an artist in the CNMI. 1040ez state tax form Marsha and her spouse will file a joint return. 1040ez state tax form Because Marsha has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If you are a member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces who qualified as a bona fide resident of the CNMI in a prior tax year, your absence from the CNMI solely in compliance with military orders will not change your bona fide residency. 1040ez state tax form If you did not qualify as a bona fide resident of the CNMI in a prior tax year, your presence in the CNMI solely in compliance with military orders will not qualify you as a bona fide resident of the CNMI. 1040ez state tax form Civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces ), your tax residence is the CNMI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040ez state tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the CNMI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040ez state tax form If you have income from the CNMI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. 1040ez state tax form S. 1040ez state tax form tax return. 1040ez state tax form Moving expense deduction. 1040ez state tax form   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. 1040ez state tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040ez state tax form S. 1040ez state tax form earned income. 1040ez state tax form   If your move was to the CNMI, report your deduction for moving expenses as follows. 1040ez state tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. 1040ez state tax form If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. 1040ez state tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040ez state tax form Foreign tax credit. 1040ez state tax form   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. 1040ez state tax form S. 1040ez state tax form income tax return for tax paid to the CNMI. 1040ez state tax form Self-employment tax. 1040ez state tax form   If you have no U. 1040ez state tax form S. 1040ez state tax form filing requirement, but have income that is effectively connected with a trade or business in the CNMI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040ez state tax form Additional Medicare Tax. 1040ez state tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040ez state tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040ez state tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form Estimated tax payments. 1040ez state tax form   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax to the IRS, get Form 1040-ES. 1040ez state tax form Payment of estimated tax. 1040ez state tax form   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. 1040ez state tax form Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. 1040ez state tax form However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. 1040ez state tax form   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). 1040ez state tax form For this purpose, income is determined without regard to community property laws. 1040ez state tax form Early payment. 1040ez state tax form   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. 1040ez state tax form If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. 1040ez state tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040ez state tax form irs. 1040ez state tax form gov/e-pay. 1040ez state tax form   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. 1040ez state tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. 1040ez state tax form See Double Taxation in chapter 4. 1040ez state tax form Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. 1040ez state tax form Where To Get Forms and Information Requests for advice about Guam residency and tax matters should be addressed to: Department of Revenue and Taxation Government of Guam P. 1040ez state tax form O. 1040ez state tax form Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. 1040ez state tax form You can order forms and publications through the fax at (671) 633-2643. 1040ez state tax form You can get forms and publications at www. 1040ez state tax form guamtax. 1040ez state tax form com. 1040ez state tax form The addresses and phone numbers listed above are subject to change. 1040ez state tax form Which Return To File Bona fide residents of Guam are subject to special U. 1040ez state tax form S. 1040ez state tax form tax rules. 1040ez state tax form In general, all individuals with income from Guam will file only one return—either to Guam or the United States. 1040ez state tax form Bona Fide Resident of Guam If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. 1040ez state tax form This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. 1040ez state tax form Include income from worldwide sources on your Guam return. 1040ez state tax form In determining your total tax payments, include all income tax withheld by either Guam or the United States, any credit for an overpayment of income tax to either Guam or the United States, and any payments of estimated tax to either Guam or the United States. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form Generally, if you properly file your return with, and fully pay your income tax to, Guam, then you are not liable for filing an income tax return with, or for paying tax to, the United States. 1040ez state tax form However, if you were self-employed in 2013, see Self-employment tax , later. 1040ez state tax form Example. 1040ez state tax form Gary Barker was a bona fide resident of Guam for 2013. 1040ez state tax form He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. 1040ez state tax form S. 1040ez state tax form corporations that carry on business mainly in the United States. 1040ez state tax form He must file a 2013 income tax return with the Government of Guam. 1040ez state tax form He reports his total income of $27,000 on the Guam return. 1040ez state tax form If you are a bona fide resident of Guam for the entire tax year, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. 1040ez state tax form O. 1040ez state tax form Box 23607 GMF, GU 96921 U. 1040ez state tax form S. 1040ez state tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) If you have income from sources within Guam and are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien, but you are not a bona fide resident of Guam during the entire tax year, file your income tax return with the United States. 1040ez state tax form Include income from worldwide sources on your U. 1040ez state tax form S. 1040ez state tax form return. 1040ez state tax form In determining your total tax payments, include all income tax withheld by either the United States or Guam, any credit for an overpayment of income tax to either the United States or Guam, and any payments of estimated tax to either the United States or Guam. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form You may also need to complete Form 5074. 1040ez state tax form You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. 1040ez state tax form Form 5074. 1040ez state tax form   If you file a U. 1040ez state tax form S. 1040ez state tax form income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within Guam. 1040ez state tax form   The United States and Guam use this form to divide your income taxes. 1040ez state tax form   See the Illustrated Example of Form 5074 in chapter 5. 1040ez state tax form De minimis exception to determining source of income. 1040ez state tax form   In certain situations you will not have income from a possession. 1040ez state tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040ez state tax form   If you are a citizen or resident alien of the United States but not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 5074) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of Guam) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Guam for the entire tax year, you generally must file the following returns. 1040ez state tax form A Guam tax return reporting only your income from sources within Guam. 1040ez state tax form In this situation, wages for services performed in Guam, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from sources within Guam. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040NR) reporting U. 1040ez state tax form S. 1040ez state tax form source income according to the rules for a nonresident alien. 1040ez state tax form See the instructions for Form 1040NR. 1040ez state tax form If you are not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments to:  Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. 1040ez state tax form O. 1040ez state tax form Box 23607 GMF, GU 96921 Citizen of Guam If you are a citizen of Guam (meaning that you were born or naturalized in Guam) but not otherwise a U. 1040ez state tax form S. 1040ez state tax form citizen or a U. 1040ez state tax form S. 1040ez state tax form resident alien during the tax year, file your income tax return with Guam. 1040ez state tax form Include income from worldwide sources on your Guam return. 1040ez state tax form Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. 1040ez state tax form O. 1040ez state tax form Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. 1040ez state tax form Joint return. 1040ez state tax form   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040ez state tax form If the spouse with the greater AGI is a bona fide resident of Guam during the entire tax year, file the joint return with Guam. 1040ez state tax form If the spouse with the greater AGI is a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien but not a bona fide resident of Guam during the entire tax year, file the joint return with the United States. 1040ez state tax form For this purpose, income is determined without regard to community property laws. 1040ez state tax form Example. 1040ez state tax form Bill Whiting, a U. 1040ez state tax form S. 1040ez state tax form citizen, was a resident of the United States, and his spouse, a citizen of Guam, was a bona fide resident of Guam during the entire tax year. 1040ez state tax form Bill earned $45,000 as an engineer in the United States. 1040ez state tax form His spouse earned $15,000 as a teacher in Guam. 1040ez state tax form Bill and his spouse will file a joint return. 1040ez state tax form Because Bill has the greater AGI, he and his spouse must file their return with the United States and report the entire $60,000 on that return. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If you are a member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces who qualified as a bona fide resident of Guam in a prior tax year, your absence from Guam solely in compliance with military orders will not change your bona fide residency. 1040ez state tax form If you did not qualify as a bona fide resident of Guam in a prior tax year, your presence in Guam solely in compliance with military orders will not qualify you as a bona fide resident of Guam. 1040ez state tax form Civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040ez state tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Guam is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040ez state tax form If you have income from Guam other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. 1040ez state tax form S. 1040ez state tax form tax return. 1040ez state tax form Moving expense deduction. 1040ez state tax form   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. 1040ez state tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040ez state tax form S. 1040ez state tax form earned income. 1040ez state tax form   If your move was to Guam, report your deduction for moving expenses as follows. 1040ez state tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. 1040ez state tax form If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. 1040ez state tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040ez state tax form Foreign tax credit. 1040ez state tax form   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. 1040ez state tax form S. 1040ez state tax form income tax return for tax paid to Guam. 1040ez state tax form Self-employment tax. 1040ez state tax form   If you have no U. 1040ez state tax form S. 1040ez state tax form filing requirement, but have income that is effectively connected with a trade or business in Guam, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040ez state tax form Additional Medicare Tax. 1040ez state tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040ez state tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040ez state tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form Estimated tax payments. 1040ez state tax form   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. 1040ez state tax form Payment of estimated tax. 1040ez state tax form   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. 1040ez state tax form Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. 1040ez state tax form However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. 1040ez state tax form   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). 1040ez state tax form For this purpose, income is determined without regard to community property laws. 1040ez state tax form Early payment. 1040ez state tax form   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. 1040ez state tax form If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. 1040ez state tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Department of Revenue and Taxation Government of Guam P. 1040ez state tax form O. 1040ez state tax form Box 23607 GMF, GU 96921   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040ez state tax form irs. 1040ez state tax form gov/e-pay. 1040ez state tax form   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. 1040ez state tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and Guam. 1040ez state tax form See Double Taxation in chapter 4. 1040ez state tax form The U. 1040ez state tax form S. 1040ez state tax form Virgin Islands The U. 1040ez state tax form S. 1040ez state tax form Virgin Islands has its own tax system based on the same tax laws and tax rates that apply in the United States. 1040ez state tax form An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI. 1040ez state tax form Where To Get Forms and Information For information about filing your U. 1040ez state tax form S. 1040ez state tax form Virgin Islands tax return or about Form 1040INFO, in St. 1040ez state tax form Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. 1040ez state tax form Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. 1040ez state tax form You can order forms and publications through the fax at (340) 774-2672. 1040ez state tax form For information about filing your U. 1040ez state tax form S. 1040ez state tax form Virgin Islands tax return or about Form 1040INFO, in St. 1040ez state tax form Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. 1040ez state tax form I. 1040ez state tax form 00820–4421 You can order forms and publications by calling (340) 773-1040. 1040ez state tax form You can order forms and publications through the fax at (340) 773-1006. 1040ez state tax form You can access the USVI website at www. 1040ez state tax form viirb. 1040ez state tax form com. 1040ez state tax form The addresses and phone numbers listed above are subject to change. 1040ez state tax form Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of the tax to each jurisdiction. 1040ez state tax form Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. 1040ez state tax form S. 1040ez state tax form citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. 1040ez state tax form Include your worldwide income on your USVI return. 1040ez state tax form In determining your total tax payments, take into account all income tax withheld by either the USVI or the United States, any credit for an overpayment of income tax to either the USVI or the United States, and any payments of estimated tax to either the USVI or the United States. 1040ez state tax form Pay any balance of tax due with your tax return. 1040ez state tax form Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. 1040ez state tax form S. 1040ez state tax form income tax. 1040ez state tax form You generally do not have to file with the United States for any tax year in which you are a bona fide resident of the USVI during the entire tax year, provided you report and pay tax on your income from all sources to the USVI and identify the source(s) of the income on the return. 1040ez state tax form However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. 1040ez state tax form For more information, see Self-employment tax under Special Rules for the USVI, later. 1040ez state tax form Form 1040INFO. 1040ez state tax form   If you are a bona fide resident of the USVI and have non-USVI source income, you must also file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands Bureau of Internal Revenue. 1040ez state tax form Attach Form 1040INFO to your USVI tax return before filing. 1040ez state tax form You can get Form 1040INFO by contacting the address or website given earlier. 1040ez state tax form   If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040ez state tax form Thomas, VI 00802 U. 1040ez state tax form S. 1040ez state tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien but not a bona fide resident of the USVI during the entire tax year, you must file your original Form 1040 with the United States and an identical copy of that return with the USVI if you have: Income from sources in the USVI, or Income effectively connected with the conduct of a trade or business in the USVI. 1040ez state tax form File your original Form 1040 with the United States and file a signed copy of the U. 1040ez state tax form S. 1040ez state tax form return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. 1040ez state tax form Use Form 8689 to figure the amount of tax you must pay to the USVI. 1040ez state tax form Form 8689. 1040ez state tax form   Complete this form and attach it to both the return you file with the United States and the copy you file with the USVI. 1040ez state tax form Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. 1040ez state tax form S. 1040ez state tax form return (after certain adjustments) × USVI AGI Worldwide AGI     Pay any tax due to the USVI when you file your return with the Virgin Islands Bureau of Internal Revenue. 1040ez state tax form To receive credit on your U. 1040ez state tax form S. 1040ez state tax form return for taxes paid to the USVI, include the amounts from Form 8689, lines 40 and 45, in the total on Form 1040, line 72. 1040ez state tax form On the dotted line next to line 72, enter “Form 8689” and show the amounts. 1040ez state tax form   See the illustrated example in chapter 5. 1040ez state tax form De minimis exception to determining source of income. 1040ez state tax form   In certain situations you will not have income from a possession. 1040ez state tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040ez state tax form   If you are not a bona fide resident of the USVI during the entire tax year, but you have USVI source income, and you are not including a check or a money order, file Form 1040 and all attachments (including Form 8689) with the:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. 1040ez state tax form S. 1040ez state tax form Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040ez state tax form Thomas, VI 00802 Nonresident Alien (Other Than a Bona Fide Resident of the USVI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the USVI for the entire tax year, you generally must file the following returns. 1040ez state tax form A USVI tax return reporting only your income from sources within the USVI. 1040ez state tax form In this situation, wages for services performed in the USVI, whether for a private employer, the U. 1040ez state tax form S. 1040ez state tax form Government, or otherwise, is income from sources within the USVI. 1040ez state tax form A U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040NR) reporting U. 1040ez state tax form S. 1040ez state tax form source income according to the rules for a nonresident alien. 1040ez state tax form See the instructions for Form 1040NR. 1040ez state tax form   If you are not a bona fide resident of the USVI during the entire tax year, and you are not including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 8689) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040ez state tax form S. 1040ez state tax form tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. 1040ez state tax form O. 1040ez state tax form Box 1303 Charlotte, NC 28201-1303  USA   Send your USVI tax return and all attachments to:  Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040ez state tax form Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. 1040ez state tax form Joint return. 1040ez state tax form   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040ez state tax form If the spouse with the greater AGI is a bona fide resident of the USVI during the entire tax year, file the joint return with the USVI. 1040ez state tax form If the spouse with the greater AGI is a U. 1040ez state tax form S. 1040ez state tax form citizen or resident alien of the United States but not a bona fide resident of the USVI during the entire tax year, file the joint return with the United States. 1040ez state tax form For this purpose, income is determined without regard to community property laws. 1040ez state tax form Example. 1040ez state tax form Marge Birch, a U. 1040ez state tax form S. 1040ez state tax form citizen, was a resident of the United States, and her spouse, a citizen of the USVI, was a bona fide resident of the USVI during the entire tax year. 1040ez state tax form Marge earned $55,000 as an architect in the United States. 1040ez state tax form Her spouse earned $30,000 as a librarian in the USVI. 1040ez state tax form Marge and her spouse will file a joint return. 1040ez state tax form Because Marge has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. 1040ez state tax form U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If you are a member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces who qualified as a bona fide resident of the U. 1040ez state tax form S. 1040ez state tax form Virgin Islands in a prior tax year, your absence from the U. 1040ez state tax form S. 1040ez state tax form Virgin Islands solely in compliance with military orders will not change your bona fide residency. 1040ez state tax form If you did not qualify as a bona fide resident of the U. 1040ez state tax form S. 1040ez state tax form Virgin Islands in a prior tax year, your presence in the U. 1040ez state tax form S. 1040ez state tax form Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. 1040ez state tax form S. 1040ez state tax form Virgin Islands. 1040ez state tax form Civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces. 1040ez state tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040ez state tax form S. 1040ez state tax form Armed Forces ), your tax residence is the USVI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040ez state tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the USVI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040ez state tax form S. 1040ez state tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040ez state tax form If you have income from the USVI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 8689 with your U. 1040ez state tax form S. 1040ez state tax form tax return. 1040ez state tax form In this case, follow the guidance under U. 1040ez state tax form S. 1040ez state tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. 1040ez state tax form Moving expense deduction. 1040ez state tax form   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. 1040ez state tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040ez state tax form S. 1040ez state tax form earned income. 1040ez state tax form   If your move was to the USVI, report your deduction for moving expenses as follows. 1040ez state tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. 1040ez state tax form If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 8689, line 20. 1040ez state tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040ez state tax form Foreign tax credit. 1040ez state tax form   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. 1040ez state tax form S. 1040ez state tax form income tax return for tax paid to the USVI. 1040ez state tax form However, individuals other than bona fide residents of the USVI may claim a direct credit for such tax (see Form 8689 earlier in this section). 1040ez state tax form Self-employment tax. 1040ez state tax form   If you have no U. 1040ez state tax form S. 1040ez state tax form filing requirement, but have income that is effectively connected with a trade or business in the USVI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040ez state tax form Additional Medicare Tax. 1040ez state tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040ez state tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040ez state tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040ez state tax form S. 1040ez state tax form Tax Return in chapter 4. 1040ez state tax form Estimated tax payments. 1040ez state tax form   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. 1040ez state tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040ez state tax form Thomas, VI 00802   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040ez state tax form irs. 1040ez state tax form gov/e-pay. 1040ez state tax form   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. 1040ez state tax form Extension of time to file. 1040ez state tax form   You can get an automatic 6-month extension of time to file your tax return. 1040ez state tax form See Extension of Time To File in chapter 4. 1040ez state tax form Bona fide residents of the USVI during the entire tax year must file a paper Form 4868 with the Virgin Islands Bureau of Internal Revenue. 1040ez state tax form Nonresidents of the USVI should file separate extension requests with the IRS and the Virgin Islands Bureau of Internal Revenue and make any payments due to the respective jurisdictions. 1040ez state tax form However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. 1040ez state tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. 1040ez state tax form S. 1040ez state tax form Virgin Islands. 1040ez state tax form See Double Taxation in chapter 4. 1040ez state tax form Prev  Up  Next   Home   More Online Publications