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1040nr Form

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1040nr Form

1040nr form Index A Additional Medicare Tax, Step 5. 1040nr form , Line 18. 1040nr form Address change, Change of address. 1040nr form Adjustments to income Estimated tax, Adjustments to income. 1040nr form Withholding allowances, Adjustments to income (worksheet line 4). 1040nr form Worksheet instructions, Deductions and Adjustments Worksheet, Net deductions and adjustments (worksheet line 8). 1040nr form AGI, AGI. 1040nr form Expected AGI, Expected AGI—Line 1 Aliens Nonresident aliens, Aliens Amended returns, Form Received After Filing, Amended returns. 1040nr form Annualized estimated tax worksheets, Worksheet 2-9. 1040nr form 2014 Annualized Estimated Tax Worksheet, Worksheet 2-9. 1040nr form 2014 Annualized Estimated Tax Worksheet(Continued) Annualized - Capital gains, Worksheet 2-12. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Annualized - Foreign Earned Income, Worksheet 2-13. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 12 Foreign Earned Income Tax Worksheet Annualized - Phaseout of itemized deductions, Worksheet 2-10. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 6 Phaseout of Itemized Deductions Annualized - Qualified dividends, Worksheet 2-12. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Annualized - Reduction of exemption amount, Worksheet 2-11. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 10 Reduction of Exemption Amount Annualized income installment method, Annualized Income Installment Method Capital gains worksheet, underpayment penalty, Worksheet 4-1. 1040nr form 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Form 2210, Schedule AI, Annualized Income Installment Method (Schedule AI) Qualified dividends worksheet, underpayment penalty, Worksheet 4-1. 1040nr form 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Underpayment penalty, (Schedule AI), Annualized Income Installment Method (Schedule AI) Annuities, Pensions and Annuities Assistance (see Tax help) B Backup withholding, Backup Withholding, Penalties. 1040nr form Credit against income tax, Backup withholding. 1040nr form C Capital gains and losses Annualized estimated tax, Tax on net capital gain. 1040nr form Estimated tax on net capital gain, Tax on net capital gain. 1040nr form Qualified dividends, Tax on qualified dividends and capital gains. 1040nr form Casualty and theft losses, Itemized deductions (worksheet line 1). 1040nr form Waiver of penalty, Waiver of Penalty Change of address, Change of address. 1040nr form Change of name, Name changed. 1040nr form Charitable contributions, Itemized deductions (worksheet line 1). 1040nr form Child and dependent care credit Personal Allowances Worksheet (Form W-4), Child and dependent care credit (worksheet line F). 1040nr form Child tax credit Personal Allowances Worksheet (Form W-4), Child tax credit (worksheet line G). 1040nr form Claim of right, Itemized deductions (worksheet line 1). 1040nr form Commodity credit corporation loans, Federal Payments Community property states, Community property states. 1040nr form Compensation, Salaries and Wages Independent contractors, backup withholding, Backup Withholding Supplemental wages, Supplemental Wages Tips, Tips Wages and salaries, Salaries and Wages Crediting of overpayment, Credit an Overpayment Credits 2013 withholding and estimated taxes, Credit for Withholding and Estimated Tax for 2013 Deductions and Adjustments Worksheet (Form W-4), Tax credits (worksheet line 5). 1040nr form Estimated tax against income tax, Estimated Tax Excess withholding on social security or railroad retirement taxes, Excess Social Security or Railroad Retirement Tax Withholding Expected taxes and credits, Expected Taxes and Credits— Lines 6–13c Withholding allowances, Tax credits (worksheet line 5). 1040nr form Withholding tax, credit for, Withholding Criminal penalties Willfully false or fraudulent Form W-4, Penalties Crop insurance payments, Federal Payments Cumulative wage method of withholding, Cumulative Wage Method D Deductions Home mortgage interest, Itemized deductions (worksheet line 1). 1040nr form Worksheet instructions, Deductions and Adjustments Worksheet Dependents Exemptions, Dependents. 1040nr form Disabled persons Impairment-related work expenses, Itemized deductions (worksheet line 1). 1040nr form Disaster Waiver of penalty, Waiver of Penalty Dividends Backup withholding, Backup Withholding Underreported, Underreported interest or dividends. 1040nr form Divorced taxpayers Estimated tax credit, Divorced Taxpayers Form W-4, Single. 1040nr form Domestic help, Household workers. 1040nr form Definition, Household workers. 1040nr form Withholding, Household workers. 1040nr form E Earned income credit (EIC), What's New for 2014 Eligible rollover distributions, Eligible Rollover Distributions Employee business expenses Accountable plans, Accountable plan. 1040nr form Nonaccountable plans, Nonaccountable plan. 1040nr form Reimbursements, Expense allowances. 1040nr form Employer Identification Numbers (EINs), Taxpayer identification number. 1040nr form Employers Excess withholding on social security and railroad retirement taxes, Two or more employers. 1040nr form , Employer's error. 1040nr form Repaying withheld tax, Repaying withheld tax. 1040nr form Tips, Tips Withholding rules, Rules Your Employer Must Follow Estate beneficiaries Underpayment penalty, Estate or trust payments of estimated tax. 1040nr form Estate tax Income in respect of a decedent, Itemized deductions (worksheet line 1). 1040nr form Estates Estimated tax, Estates and Trusts Estimated tax Adjustments to income, Adjustments to income. 1040nr form Aliens, Aliens, Nonresident aliens. 1040nr form Amended tax, Regular Installment Method Annualized income installment method, Annualized Income Installment Method Change in amount, Change in estimated tax. 1040nr form Change of address, Change of address. 1040nr form Change of name, Name changed. 1040nr form Credit against income tax, Estimated Tax Crediting of overpayment, Credit an Overpayment Divorced taxpayers, Divorced Taxpayers Estates and trusts, Estates and Trusts Exemptions, Exemptions—line 4. 1040nr form Expected AGI, Expected AGI—Line 1 Expected taxable income, Expected Taxable Income— Lines 2–5 Expected taxes and credits, Expected Taxes and Credits— Lines 6–13c Farmers and fishermen, Farmers and Fishermen, Farmers and fishermen. 1040nr form , Farmers and Fishermen Fiscal year taxpayers, Fiscal year taxpayers. 1040nr form Higher income individuals, Higher income taxpayers. 1040nr form How to figure, How To Figure Estimated Tax, How To Figure Each Payment How to pay, How To Pay Estimated Tax Instructions for Worksheet 2-9, annualized estimated tax, Instructions for the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9) Itemized deductions, Itemized deductions—line 2. 1040nr form Married taxpayers, Married Taxpayers Net capital gain, Tax on net capital gain. 1040nr form , Tax on net capital gain. 1040nr form No standard deduction, No standard deduction. 1040nr form Nonresident aliens, Nonresident aliens. 1040nr form Overpayment, Credit an Overpayment Payment vouchers, Pay by Check or Money Order Using the Estimated Tax Payment Voucher Payments not required, Estimated Tax Payments Not Required Regular installment method, Regular Installment Method Required annual payment, Required Annual Payment— Line 14c Self-employment income, Self-employment income. 1040nr form Separate returns, Separate Returns Sick pay, Estimated tax. 1040nr form Standard deduction, Standard deduction—line 2. 1040nr form , Line 7. 1040nr form Total estimated tax payments, Total Estimated Tax Payments Needed—Line 16a Types of taxes included, Introduction Underpayment penalty, Underpayment penalty. 1040nr form , Underpayment Penalty for 2013 When to pay, When To Pay Estimated Tax When to start payments, When To Start Who does not have to pay, Who Does Not Have To Pay Estimated Tax Who must pay, Who Must Pay Estimated Tax Estimated tax worksheets, Worksheets for Chapter 2, Worksheet 2-1. 1040nr form 2014 Estimated Tax Worksheet, Worksheet 2-2. 1040nr form 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits 2014 annualized estimated tax worksheet, Worksheet 2-9. 1040nr form 2014 Annualized Estimated Tax Worksheet Capital gains, tax on, Tax on net capital gain. 1040nr form Foreign earned income, Worksheet 2-8. 1040nr form 2014 Estimated Tax Worksheet—Line 6 Foreign Earned Income Tax Worksheet Form 1040-ES, Worksheet 2-1. 1040nr form 2014 Estimated Tax Worksheet Phaseout of itemized deductions, Worksheet 2-5. 1040nr form 2014 Estimated Tax Worksheet—Line 2 Phaseout of Itemized Deductions Railroad retirement benefits, Worksheet 2-2. 1040nr form 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Reduction of exemption amount, Worksheet 2-6. 1040nr form 2014 Estimated Tax Worksheet—Line 4 Reduction of Exemption Amount Self-employment tax, Worksheet 2-3. 1040nr form 2014 Estimated Tax Worksheet—Lines 1 and 11 Estimated Self-Employment Tax and Deduction Worksheet Social security benefits, Worksheet 2-2. 1040nr form 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Standard deduction, Worksheet 2-4. 1040nr form 2014 Estimated Tax Worksheet—Line 2 Standard Deduction Worksheet Excess social security or railroad retirement tax withholding, Excess Social Security or Railroad Retirement Tax Withholding, How to claim refund of excess tier 2 RRTA. 1040nr form Nonrailroad employees worksheet, Worksheet for Nonrailroad Employees Railroad employees worksheets, Worksheets for Railroad Employees Exemption from withholding, Exemption From Withholding Claiming, Claiming exemption from withholding. 1040nr form Good for only one year, An exemption is good for only 1 year. 1040nr form Itemized deductions, Itemizing deductions or claiming exemptions or credits. 1040nr form Students, Students. 1040nr form Exemptions, Line 10. 1040nr form Dependents, Dependents. 1040nr form Expected taxable income, Exemptions—line 4. 1040nr form Personal Allowances Worksheet, Exemptions (worksheet lines A, C, and D). 1040nr form Self, Self. 1040nr form Spouse, Spouse. 1040nr form Withholding allowances, Withholding Allowances Expenses, Itemized deductions (worksheet line 1). 1040nr form Allowances, Expense allowances. 1040nr form F Farmers Estimated tax, Special Rules, Farmers and fishermen. 1040nr form , Farmers and Fishermen Fiscal years, Fiscal year farmers and fishermen. 1040nr form Gross income, Gross income from farming. 1040nr form Joint returns, Joint returns. 1040nr form Required annual payment, Farmers and fishermen. 1040nr form Underpayment penalty, Farmers and fishermen. 1040nr form , Farmers and Fishermen Waiver of underpayment penalty, Farmers and fishermen. 1040nr form Withholding for farmworkers, Farmworkers. 1040nr form Figures Tables and figures (see Tables and figures) Fiscal years Estimated tax, Fiscal year taxpayers. 1040nr form Farmers and fishermen, Fiscal year farmers and fishermen. 1040nr form Withholding tax credit, Fiscal Years (FY) Fishermen Estimated tax, Special Rules, Farmers and fishermen. 1040nr form , Farmers and Fishermen Fiscal years, Fiscal year farmers and fishermen. 1040nr form Gross income, Gross income from fishing. 1040nr form Joint returns, Joint returns. 1040nr form Required annual payment, Farmers and fishermen. 1040nr form Underpayment penalty, Farmers and fishermen. 1040nr form , Farmers and Fishermen Waiver of underpayment penalty, Farmers and fishermen. 1040nr form Form 1040-ES, Introduction, How To Pay Estimated Tax Form 1040-ES (NR), Aliens Form 1040X, Form Received After Filing Form 1041-ES, Estates and Trusts Form 1099 series, Backup Withholding, The 1099 Series Form 2210, Form 2210. 1040nr form , Figuring Your Required Annual Payment (Part I) Form 2210-F, Form 2210-F. 1040nr form Form W-2, Form W-2 Form W-2c, Form Not Correct Form W-2G, Form W-2G. 1040nr form , Form W-2G Form W-4 worksheets, Completing Form W-4 and Worksheets Completing of, Completing Form W-4 and Worksheets Deductions and adjustments worksheet, Deductions and Adjustments Worksheet IRS withholding calculator, IRS Withholding Calculator. 1040nr form Number of allowances claimed, Only one job (worksheet line B). 1040nr form Two-Earners/Multiple Jobs Worksheet, Two-Earners/Multiple Jobs Worksheet Withholding allowances, Completing Form W-4 and Worksheets, Form W-4 worksheets. 1040nr form Form W-4, Employee's Allowance Withholding Certificate, Determining Amount of Tax Withheld Using Form W-4 Form W-4P, Periodic Payments Form W-4S, Form W-4S. 1040nr form Form W-4V, Unemployment Compensation Form W-7, Taxpayer identification number. 1040nr form Form W-9, Withholding rules. 1040nr form Fraud Form W-4 statements, Penalties Free tax services, Free help with your tax return. 1040nr form Fringe benefits, Taxable Fringe Benefits, More information. 1040nr form G Gambling Form W-2G, Form W-2G Losses, Itemized deductions (worksheet line 1). 1040nr form , Form W-2G Winnings, Form W-2G Gross income, Gross income. 1040nr form Farming, Gross income from farming. 1040nr form Fishing, Gross income from fishing. 1040nr form H Head of household Personal Allowances Worksheet, Head of household filing status (worksheet line E). 1040nr form Withholding allowance, Head of household filing status (worksheet line E). 1040nr form Help (see Tax help) Higher income individuals Required annual payment, Higher income taxpayers. 1040nr form Underpayment penalty, Higher income taxpayers. 1040nr form Household workers, Household workers. 1040nr form I Individual retirement arrangements (IRAs), Pensions and Annuities (see also Pensions) Interest income Backup withholding, Backup Withholding Underreported, Underreported interest or dividends. 1040nr form IRS withholding calculator, IRS Withholding Calculator. 1040nr form Itemized deductions Deductions and Adjustments Worksheet, Itemized deductions (worksheet line 1). 1040nr form Estimated tax, expected taxable income, Itemized deductions—line 2. 1040nr form Exemption from withholding, Itemizing deductions or claiming exemptions or credits. 1040nr form Gambling losses, Itemized deductions (worksheet line 1). 1040nr form , Form W-2G J Joint returns Excess withholding on social security and railroad retirement taxes, Joint returns. 1040nr form Farmers and fishermen, Joint returns. 1040nr form Underpayment penalty, 2012 separate returns and 2013 joint return. 1040nr form M Marital status Form W-4 worksheet, Marital Status Withholding rate, Marital Status Married taxpayers, Joint returns. 1040nr form (see also Joint returns) Estimated tax, Married Taxpayers Marital status, Married. 1040nr form Withholding allowances, Married individuals. 1040nr form Medical and dental expenses, Itemized deductions (worksheet line 1). 1040nr form Military retirement pay, Military retirees. 1040nr form , Periodic Payments Missing children, photographs of, Reminders Multiple jobs Excess social security and railroad retirement withholding, Excess Social Security or Railroad Retirement Tax Withholding Withholding allowances, Multiple jobs. 1040nr form N Name change, Name changed. 1040nr form Net investment income tax, Step 5. 1040nr form , Line 18. 1040nr form NIIT, Step 5. 1040nr form , Line 18. 1040nr form Noncitizens Estimated tax, Aliens Withholding, Single. 1040nr form , Employees who are not citizens or residents. 1040nr form Nonqualified deferred compensation, Periodic Payments Nonresident aliens Estimated tax, Aliens, Nonresident aliens. 1040nr form Individual taxpayer identification numbers (ITINs), Taxpayer identification number. 1040nr form O Overpayment Crediting to estimated tax, Credit an Overpayment P Part-year method of withholding, Part-Year Method Patronage dividends Backup withholding, Backup Withholding Payment vouchers, Pay by Check or Money Order Using the Estimated Tax Payment Voucher Penalties Backup withholding, Penalties. 1040nr form Underpayment of estimated tax, Underpayment Penalty for 2013 Waiver of underpayment penalty, Waiver of Penalty Willfully false or fraudulent Form W-4, Penalties Withholding allowances, Penalties Pensions, Pensions and Annuities New job, Employee also receiving pension income. 1040nr form Rollovers, Eligible Rollover Distributions Wages and salaries withholding rules compared, Withholding rules. 1040nr form Personal Allowances Worksheet, Personal Allowances Worksheet, Total personal allowances (worksheet line H). 1040nr form Publications (see Tax help) R Railroad retirement benefits Choosing to withhold, Federal Payments Railroad retirement tax Excess withholding, Excess Social Security or Railroad Retirement Tax Withholding, Worksheets for Railroad Employees Refund claims (tier 2), How to claim refund of excess tier 2 RRTA. 1040nr form Regular installment method, estimated tax, Regular Installment Method Reimbursements, Expense allowances. 1040nr form Excess, Accountable plan. 1040nr form Reporting Fringe benefits, How your employer reports your benefits. 1040nr form Gambling winnings, Information to give payer. 1040nr form Tips to employer, Reporting tips to your employer. 1040nr form Required annual payment, Required Annual Payment— Line 14c, Example. 1040nr form Retirement plans Pension plans, Pensions and Annuities Pensions, Pensions and Annuities Rollovers, Eligible Rollover Distributions State or local deferred compensation plan payments, Periodic Payments Rollovers, Eligible Rollover Distributions Royalties Backup withholding, Backup Withholding S Salaries, Salaries and Wages Saturday, Sunday, holiday rule, Saturday, Sunday, holiday rule. 1040nr form Self-employment tax, Self-employment income. 1040nr form Separate returns Estimated tax credit, Separate Returns Underpayment penalty, 2012 joint return and 2013 separate returns. 1040nr form Withholding tax credit, Separate Returns Sick pay, Sick Pay, Estimated tax. 1040nr form Single marital status, Single. 1040nr form Social security benefits Choosing to withhold, Federal Payments Social security taxes Excess withholding, Excess Social Security or Railroad Retirement Tax Withholding Taxpayer identification numbers (TINs), Taxpayer identification number. 1040nr form Withholding obligation, Reminders Spouse, Marital Status (see also Married taxpayers) Exemption, Spouse. 1040nr form Marital status, Marital Status Personal Allowances Worksheet, Spouse. 1040nr form Standard deduction, Standard deduction—line 2. 1040nr form , Line 7. 1040nr form State and local income taxes and property taxes, Itemized deductions (worksheet line 1). 1040nr form State or local deferred compensation plan payments, Periodic Payments Students, Students. 1040nr form Supplemental wages, Supplemental Wages T Tables and figures Do you have to pay estimated tax? (Figure 2-A), Exemption from withholding on Form W-4 (Figure 1-A), Railroad retirement, maximum withholding (Table 3-2), Table 3-2. 1040nr form Maximum Social Security and RRTA Withholding for 2013 Social security, maximum withholding (Table 3-2), Table 3-2. 1040nr form Maximum Social Security and RRTA Withholding for 2013 Worksheets, where to find, Worksheets for Chapter 2 Tax help, How To Get Tax Help Tax Rate Schedules, 2014 Tax Rate Schedules Taxpayer identification numbers (TINs), Taxpayer identification number. 1040nr form Tips, Tips, More information. 1040nr form Total income, Total income. 1040nr form Trust beneficiaries Underpayment penalty, Estate or trust payments of estimated tax. 1040nr form TTY/TDD information, How To Get Tax Help Two-Earners/Multiple Jobs Worksheet, Two-Earners/Multiple Jobs Worksheet U Underpayment penalty, Underpayment Penalty for 2013, Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Actual withholding method, Actual withholding method. 1040nr form Amended estimated tax, Underpayment penalty. 1040nr form Amended returns, Amended returns. 1040nr form Annualized income installment method, Annualized Income Installment Method (Schedule AI) Beneficiaries of estates and trusts, Estate or trust payments of estimated tax. 1040nr form Capital gains (Worksheet 4-1), Worksheet 4-1. 1040nr form 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Exceptions, Exceptions Farmers and fishermen, Farmers and fishermen. 1040nr form , Farmers and Fishermen, Farmers and fishermen. 1040nr form Figuring, IRS can figure the penalty for you. 1040nr form , Short Method for Figuring the Penalty (Part III), Regular Method for Figuring the Penalty (Part IV) Higher income individuals, Higher income taxpayers. 1040nr form Joint returns, 2012 separate returns and 2013 joint return. 1040nr form Lowering or eliminating, Lowering or eliminating the penalty. 1040nr form Minimum required each period, Minimum required each period. 1040nr form No penalty, No penalty. 1040nr form No tax liability last year exception, No Tax Liability Last Year Paid through withholding, Paid through withholding. 1040nr form , Actual withholding method. 1040nr form Penalty figured for each period, Penalty figured separately for each period. 1040nr form Penalty thresholds, General Rule Qualified dividends (Worksheet 4-1), Worksheet 4-1. 1040nr form 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Required annual payment, Figuring Your Required Annual Payment (Part I) Schedule AI, Annualized Income Installment Method (Schedule AI) Separate returns, 2012 joint return and 2013 separate returns. 1040nr form Waiver, Waiver of Penalty When charged, When penalty is charged. 1040nr form Unemployment compensation, Unemployment Compensation, Form 1099-G. 1040nr form W Wages and salaries, Salaries and Wages Waiver of penalty, Waiver of Penalty Withholding Allowances, Withholding Allowances, Alternative method of figuring withholding allowances. 1040nr form , Only one job (worksheet line B). 1040nr form Personal Allowances Worksheet, Personal Allowances Worksheet Amended returns, Form Received After Filing Amount of tax withheld, Form W-4, Determining Amount of Tax Withheld Using Form W-4 Annuities, Pensions and Annuities Backup withholding, Backup Withholding Changing, Changing Your Withholding Checking amount of, Checking Your Withholding Choosing not to withhold, Choosing Not To Have Income Tax Withheld Community property states, Community property states. 1040nr form Credit against income tax, Withholding Cumulative wage method, Cumulative Wage Method Deductions and adjustments worksheet, Deductions and Adjustments Worksheet Divorced taxpayers, Single. 1040nr form Domestic help, Household workers. 1040nr form Employers' rules, Rules Your Employer Must Follow Estimated tax, Withholding—line 15. 1040nr form Excess social security and railroad retirement taxes, Excess Social Security or Railroad Retirement Tax Withholding Exemption from, Exemption From Withholding Farmworkers, Farmworkers. 1040nr form Fiscal years, Fiscal Years (FY) Form received after filing, Form Received After Filing Form W-2, Form W-2 Form W-2c, Form Not Correct Form W-2G, Form W-2G. 1040nr form , Form W-2G Form W-4, Determining Amount of Tax Withheld Using Form W-4 Fringe benefits, Taxable Fringe Benefits Gambling winnings, Gambling Winnings, Backup withholding on gambling winnings. 1040nr form , Form W-2G Getting right amount of tax withheld, Getting the Right Amount of Tax Withheld, IRS Withholding Calculator. 1040nr form Household workers, Household workers. 1040nr form Marital status, Marital Status Married taxpayers, Married. 1040nr form , Married individuals. 1040nr form Multiple jobs, Multiple jobs. 1040nr form Noncitizens, Single. 1040nr form , Employees who are not citizens or residents. 1040nr form Nonperiodic payments, Nonperiodic Payments Part-year method, Part-Year Method Penalties, Penalties Pensions, Pensions and Annuities Periodic payments, Periodic Payments Railroad retirement benefits, Federal Payments Repaying withheld tax, Repaying withheld tax. 1040nr form Rollovers, Eligible Rollover Distributions Salaries and wages, Salaries and Wages Separate returns, Separate Returns Sick pay, Sick Pay Single taxpayers, Single. 1040nr form Social security (FICA) tax, Reminders, Federal Payments Tips, Tips Types of income, Introduction, Salaries and Wages Underpayment penalty, Paid through withholding. 1040nr form , Actual withholding method. 1040nr form Unemployment compensation, Unemployment Compensation Worksheet for Form 2210, Part IV, Section B-Figure the Penalty Penalty Worksheet, Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Worksheets (blank) Annualized - Capital gains (Worksheet 2-12), Worksheet 2-12. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Annualized - Foreign Earned Income (Worksheet 2-13), Worksheet 2-13. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 12 Foreign Earned Income Tax Worksheet Annualized - Phaseout of itemized deductions (Worksheet 2-10), Worksheet 2-10. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 6 Phaseout of Itemized Deductions Annualized - Qualified dividends (Worksheet 2-12), Worksheet 2-12. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Annualized - Reduction of exemption amount (Worksheet 2-11), Worksheet 2-11. 1040nr form 2014 Annualized Estimated Tax Worksheet—Line 10 Reduction of Exemption Amount Annualized estimated tax (Worksheet 2-9), Worksheet 2-9. 1040nr form 2014 Annualized Estimated Tax Worksheet, Worksheet 2-9. 1040nr form 2014 Annualized Estimated Tax Worksheet(Continued) Capital gains tax worksheet Worksheet 4-1, Worksheet 4-1. 1040nr form 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Dependents (age 65 or older or blind) exemption from withholding (Worksheet 1-4), Worksheet 1-4. 1040nr form Exemption From Withholding for Dependents Age 65 or Older or Blind Estimated tax worksheets (Worksheet 2-1), Worksheet 2-1. 1040nr form 2014 Estimated Tax Worksheet Foreign earned income (Worksheet 2-8), Worksheet 2-8. 1040nr form 2014 Estimated Tax Worksheet—Line 6 Foreign Earned Income Tax Worksheet Phaseout of itemized deductions (Worksheet 2-5), Worksheet 2-5. 1040nr form 2014 Estimated Tax Worksheet—Line 2 Phaseout of Itemized Deductions Qualified dividends Worksheet 4-1, Worksheet 4-1. 1040nr form 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Railroad retirement benefits (Worksheet 2-2), Worksheet 2-2. 1040nr form 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Reduction of exemption amount (Worksheet 2-6), Worksheet 2-6. 1040nr form 2014 Estimated Tax Worksheet—Line 4 Reduction of Exemption Amount Self-employment tax and deduction (Worksheet 2-3), Worksheet 2-3. 1040nr form 2014 Estimated Tax Worksheet—Lines 1 and 11 Estimated Self-Employment Tax and Deduction Worksheet Social security benefits (Worksheet 2-2), Worksheet 2-2. 1040nr form 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Standard deduction (Worksheet 2-4), Worksheet 2-4. 1040nr form 2014 Estimated Tax Worksheet—Line 2 Standard Deduction Worksheet Prev  Up     Home   More Online Publications
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The 1040nr Form

1040nr form 5. 1040nr form   Wages, Salaries, and Other Earnings Table of Contents Reminder Introduction Useful Items - You may want to see: Employee CompensationBabysitting. 1040nr form Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Reminder Foreign income. 1040nr form   If you are a U. 1040nr form S. 1040nr form citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. 1040nr form S. 1040nr form law. 1040nr form This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. 1040nr form This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). 1040nr form If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. 1040nr form For details, see Publication 54, Tax Guide for U. 1040nr form S. 1040nr form Citizens and Resident Aliens Abroad. 1040nr form Introduction This chapter discusses compensation received for services as an employee, such as wages, salaries, and fringe benefits. 1040nr form The following topics are included. 1040nr form Bonuses and awards. 1040nr form Special rules for certain employees. 1040nr form Sickness and injury benefits. 1040nr form The chapter explains what income is included in the employee's gross income and what is not included. 1040nr form Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income Employee Compensation This section discusses various types of employee compensation including fringe benefits, retirement plan contributions, stock options, and restricted property. 1040nr form Form W-2. 1040nr form    If you are an employee, you should receive Form W-2 from your employer showing the pay you received for your services. 1040nr form Include your pay on line 7 of Form 1040 or Form 1040A, or on line 1 of Form 1040EZ, even if you do not receive a Form W-2. 1040nr form   If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. 1040nr form These wages must be included on line 7 of Form 1040. 1040nr form See Form 8919 for more information. 1040nr form Childcare providers. 1040nr form    If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. 1040nr form If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. 1040nr form You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. 1040nr form Babysitting. 1040nr form   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. 1040nr form Miscellaneous Compensation This section discusses different types of employee compensation. 1040nr form Advance commissions and other earnings. 1040nr form   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. 1040nr form    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. 1040nr form If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), or you may be able to take a credit for that year. 1040nr form See Repayments in chapter 12. 1040nr form Allowances and reimbursements. 1040nr form    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463. 1040nr form If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. 1040nr form Back pay awards. 1040nr form    Include in income amounts you are awarded in a settlement or judgment for back pay. 1040nr form These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. 1040nr form They should be reported to you by your employer on Form W-2. 1040nr form Bonuses and awards. 1040nr form   Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. 1040nr form These include prizes such as vacation trips for meeting sales goals. 1040nr form If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. 1040nr form However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. 1040nr form Employee achievement award. 1040nr form   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. 1040nr form However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. 1040nr form Your employer can tell you whether your award is a qualified plan award. 1040nr form Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. 1040nr form   However, the exclusion does not apply to the following awards: A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. 1040nr form A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. 1040nr form Example. 1040nr form Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. 1040nr form Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. 1040nr form However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 – $1,600) in his income. 1040nr form Differential wage payments. 1040nr form   This is any payment made to you by an employer for any period during which you are, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages you would have received from the employer during that period. 1040nr form These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. 1040nr form The payments are reported as wages on Form W-2. 1040nr form Government cost-of-living allowances. 1040nr form   Most payments received by U. 1040nr form S. 1040nr form Government civilian employees for working abroad are taxable. 1040nr form However, certain cost-of-living allowances are tax free. 1040nr form Publication 516, U. 1040nr form S. 1040nr form Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. 1040nr form Nonqualified deferred compensation plans. 1040nr form   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. 1040nr form This amount is shown on Form W-2, box 12, using code Y. 1040nr form This amount is not included in your income. 1040nr form   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. 1040nr form This amount is included in your wages shown on Form W-2, box 1. 1040nr form It is also shown on Form W-2, box 12, using code Z. 1040nr form Note received for services. 1040nr form    If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. 1040nr form When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. 1040nr form Do not include that part again in your income. 1040nr form Include the rest of the payment in your income in the year of payment. 1040nr form   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. 1040nr form Severance pay. 1040nr form   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. 1040nr form Accrued leave payment. 1040nr form    If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. 1040nr form   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. 1040nr form You can reduce gross wages by the amount you repaid in the same tax year in which you received it. 1040nr form Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on the return and the wages on your Forms W-2. 1040nr form Outplacement services. 1040nr form   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. 1040nr form    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). 1040nr form Sick pay. 1040nr form   Pay you receive from your employer while you are sick or injured is part of your salary or wages. 1040nr form In addition, you must include in your income sick pay benefits received from any of the following payers: A welfare fund. 1040nr form A state sickness or disability fund. 1040nr form An association of employers or employees. 1040nr form An insurance company, if your employer paid for the plan. 1040nr form However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. 1040nr form For more information, see Publication 525. 1040nr form Social security and Medicare taxes paid by employer. 1040nr form   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. 1040nr form The payment also is treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. 1040nr form However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. 1040nr form Stock appreciation rights. 1040nr form   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. 1040nr form When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. 1040nr form You include the cash payment in your income in the year you use the right. 1040nr form Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. 1040nr form Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. 1040nr form Accounting period. 1040nr form   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. 1040nr form Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. 1040nr form The general rule: benefits are reported for a full calendar year (January 1–December 31). 1040nr form The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. 1040nr form For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. 1040nr form  Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. 1040nr form   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). 1040nr form Form W-2. 1040nr form   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. 1040nr form Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). 1040nr form However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). 1040nr form Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. 1040nr form Benefits you receive from the plan may be taxable, as explained later under Sickness and Injury Benefits . 1040nr form For information on the items covered in this section, other than Long-term care coverage, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. 1040nr form Long-term care coverage. 1040nr form    Contributions by your employer to provide coverage for long-term care services generally are not included in your income. 1040nr form However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. 1040nr form This amount will be reported as wages in box 1 of your Form W-2. 1040nr form   Contributions you make to the plan are discussed in Publication 502, Medical and Dental Expenses. 1040nr form Archer MSA contributions. 1040nr form    Contributions by your employer to your Archer MSA generally are not included in your income. 1040nr form Their total will be reported in box 12 of Form W-2 with code R. 1040nr form You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. 1040nr form File the form with your return. 1040nr form Health flexible spending arrangement (health FSA). 1040nr form   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. 1040nr form Note. 1040nr form Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. 1040nr form The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. 1040nr form For more information, see Notice 2012-40, 2012-26 I. 1040nr form R. 1040nr form B. 1040nr form 1046, available at www. 1040nr form irs. 1040nr form gov/irb/2012-26 IRB/ar09. 1040nr form html. 1040nr form Health reimbursement arrangement (HRA). 1040nr form   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. 1040nr form Health savings accounts (HSA). 1040nr form   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. 1040nr form Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. 1040nr form Contributions made by your employer are not included in your income. 1040nr form Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. 1040nr form Distributions not used for qualified medical expenses are included in your income. 1040nr form See Publication 969 for the requirements of an HSA. 1040nr form   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. 1040nr form The contributions are treated as a distribution of money and are not included in the partner's gross income. 1040nr form Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. 1040nr form In both situations, the partner can deduct the contribution made to the partner's HSA. 1040nr form   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. 1040nr form The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. 1040nr form Qualified HSA funding distribution. 1040nr form   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. 1040nr form See Publication 590 for the requirements for these qualified HSA funding distributions. 1040nr form Failure to maintain eligibility. 1040nr form   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. 1040nr form If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. 1040nr form This income is also subject to an additional 10% tax. 1040nr form Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. 1040nr form See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. 1040nr form Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. 1040nr form They also are included as social security and Medicare wages in boxes 3 and 5. 1040nr form However, they are not included as wages in box 1. 1040nr form To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. 1040nr form File the form with your return. 1040nr form De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. 1040nr form In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. 1040nr form Holiday gifts. 1040nr form   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. 1040nr form However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. 1040nr form Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. 1040nr form For more information, see Publication 970, Tax Benefits for Education. 1040nr form Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. 1040nr form However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. 1040nr form For exceptions, see Entire cost excluded , and Entire cost taxed , later. 1040nr form If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. 1040nr form Also, it is shown separately in box 12 with code C. 1040nr form Group-term life insurance. 1040nr form   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. 1040nr form Permanent benefits. 1040nr form   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. 1040nr form Your employer should be able to tell you the amount to include in your income. 1040nr form Accidental death benefits. 1040nr form   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. 1040nr form Former employer. 1040nr form   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. 1040nr form Also, it is shown separately in box 12 with code C. 1040nr form Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. 1040nr form You must pay these taxes with your income tax return. 1040nr form Include them on line 60, Form 1040, and follow the instructions for line 60. 1040nr form For more information, see the Instructions for Form 1040. 1040nr form Two or more employers. 1040nr form   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. 1040nr form If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. 1040nr form You must figure how much to include in your income. 1040nr form Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. 1040nr form Figuring the taxable cost. 1040nr form   Use the following worksheet to figure the amount to include in your income. 1040nr form     Worksheet 5-1. 1040nr form Figuring the Cost of Group-Term Life Insurance To Include in Income 1. 1040nr form Enter the total amount of your insurance coverage from your employer(s) 1. 1040nr form   2. 1040nr form Limit on exclusion for employer-provided group-term life insurance coverage 2. 1040nr form 50,000 3. 1040nr form Subtract line 2 from line 1 3. 1040nr form   4. 1040nr form Divide line 3 by $1,000. 1040nr form Figure to the nearest tenth 4. 1040nr form   5. 1040nr form Go to Table 5-1. 1040nr form Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. 1040nr form   6. 1040nr form Multiply line 4 by line 5 6. 1040nr form   7. 1040nr form Enter the number of full months of coverage at this cost. 1040nr form 7. 1040nr form   8. 1040nr form Multiply line 6 by line 7 8. 1040nr form   9. 1040nr form Enter the premiums you paid per month 9. 1040nr form       10. 1040nr form Enter the number of months you paid the premiums 10. 1040nr form       11. 1040nr form Multiply line 9 by line 10. 1040nr form 11. 1040nr form   12. 1040nr form Subtract line 11 from line 8. 1040nr form Include this amount in your income as wages 12. 1040nr form      Table 5-1. 1040nr form Cost of $1,000 of Group-Term Life Insurance for One Month Age Cost Under 25 $. 1040nr form 05 25 through 29 . 1040nr form 06 30 through 34 . 1040nr form 08 35 through 39 . 1040nr form 09 40 through 44 . 1040nr form 10 45 through 49 . 1040nr form 15 50 through 54 . 1040nr form 23 55 through 59 . 1040nr form 43 60 through 64 . 1040nr form 66 65 through 69 1. 1040nr form 27 70 and older 2. 1040nr form 06 Example. 1040nr form You are 51 years old and work for employers A and B. 1040nr form Both employers provide group-term life insurance coverage for you for the entire year. 1040nr form Your coverage is $35,000 with employer A and $45,000 with employer B. 1040nr form You pay premiums of $4. 1040nr form 15 a month under the employer B group plan. 1040nr form You figure the amount to include in your income as shown in Worksheet 5-1. 1040nr form Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated, later. 1040nr form Worksheet 5-1. 1040nr form Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated 1. 1040nr form Enter the total amount of your insurance coverage from your employer(s) 1. 1040nr form 80,000 2. 1040nr form Limit on exclusion for employer-provided group-term life insurance coverage 2. 1040nr form 50,000 3. 1040nr form Subtract line 2 from line 1 3. 1040nr form 30,000 4. 1040nr form Divide line 3 by $1,000. 1040nr form Figure to the nearest tenth 4. 1040nr form 30. 1040nr form 0 5. 1040nr form Go to Table 5-1. 1040nr form Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. 1040nr form . 1040nr form 23 6. 1040nr form Multiply line 4 by line 5 6. 1040nr form 6. 1040nr form 90 7. 1040nr form Enter the number of full months of coverage at this cost. 1040nr form 7. 1040nr form 12 8. 1040nr form Multiply line 6 by line 7 8. 1040nr form 82. 1040nr form 80 9. 1040nr form Enter the premiums you paid per month 9. 1040nr form 4. 1040nr form 15     10. 1040nr form Enter the number of months you paid the premiums 10. 1040nr form 12     11. 1040nr form Multiply line 9 by line 10. 1040nr form 11. 1040nr form 49. 1040nr form 80 12. 1040nr form Subtract line 11 from line 8. 1040nr form Include this amount in your income as wages 12. 1040nr form 33. 1040nr form 00 Entire cost excluded. 1040nr form   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. 1040nr form You are permanently and totally disabled and have ended your employment. 1040nr form Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. 1040nr form A charitable organization (defined in chapter 24) to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. 1040nr form (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. 1040nr form ) The plan existed on January 1, 1984, and You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. 1040nr form Entire cost taxed. 1040nr form   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply: The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. 1040nr form You are a key employee and your employer's plan discriminates in favor of key employees. 1040nr form Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. 1040nr form Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. 1040nr form You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. 1040nr form Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. 1040nr form A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. 1040nr form Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. 1040nr form However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. 1040nr form Exclusion limit. 1040nr form   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. 1040nr form   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. 1040nr form   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. 1040nr form   If the benefits have a value that is more than these limits, the excess must be included in your income. 1040nr form You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. 1040nr form Commuter highway vehicle. 1040nr form   This is a highway vehicle that seats at least six adults (not including the driver). 1040nr form At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). 1040nr form Transit pass. 1040nr form   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. 1040nr form Qualified parking. 1040nr form   This is parking provided to an employee at or near the employer's place of business. 1040nr form It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. 1040nr form It does not include parking at or near the employee's home. 1040nr form Qualified bicycle commuting. 1040nr form   This is reimbursement based on the number of qualified bicycle commuting months for the year. 1040nr form A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. 1040nr form The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. 1040nr form Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. 1040nr form (Your employer can tell you whether your retirement plan is qualified. 1040nr form ) However, the cost of life insurance coverage included in the plan may have to be included. 1040nr form See Group-Term Life Insurance , earlier, under Fringe Benefits. 1040nr form If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. 1040nr form However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. 1040nr form For information on distributions from retirement plans, see Publication 575, Pension and Annuity Income (or Publication 721, Tax Guide to U. 1040nr form S. 1040nr form Civil Service Retirement Benefits, if you are a federal employee or retiree). 1040nr form Elective deferrals. 1040nr form   If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. 1040nr form The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. 1040nr form An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. 1040nr form However, it is included in wages subject to social security and Medicare taxes. 1040nr form   Elective deferrals include elective contributions to the following retirement plans. 1040nr form Cash or deferred arrangements (section 401(k) plans). 1040nr form The Thrift Savings Plan for federal employees. 1040nr form Salary reduction simplified employee pension plans (SARSEP). 1040nr form Savings incentive match plans for employees (SIMPLE plans). 1040nr form Tax-sheltered annuity plans (403(b) plans). 1040nr form Section 501(c)(18)(D) plans. 1040nr form Section 457 plans. 1040nr form Qualified automatic contribution arrangements. 1040nr form   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. 1040nr form You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. 1040nr form The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. 1040nr form   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. 1040nr form Overall limit on deferrals. 1040nr form   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3) and (5) above. 1040nr form The limit for SIMPLE plans is $12,000. 1040nr form The limit for section 501(c)(18)(D) plans is the lesser of $7,000 or 25% of your compensation. 1040nr form The limit for section 457 plans is the lesser of your includible compensation or $17,500. 1040nr form Amounts deferred under specific plan limits are part of the overall limit on deferrals. 1040nr form Designated Roth contributions. 1040nr form   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. 1040nr form Designated Roth contributions are treated as elective deferrals, except that they are included in income. 1040nr form Excess deferrals. 1040nr form   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. 1040nr form However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. 1040nr form   If you set aside more than the limit, the excess generally must be included in your income for that year, unless you have an excess deferral of a designated Roth contribution. 1040nr form See Publication 525 for a discussion of the tax treatment of excess deferrals. 1040nr form Catch-up contributions. 1040nr form   You may be allowed catch-up contributions (additional elective deferral) if you are age 50 or older by the end of your tax year. 1040nr form Stock Options If you receive a nonstatutory option to buy or sell stock or other property as payment for your services, you usually will have income when you receive the option, when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option. 1040nr form However, if your option is a statutory stock option, you will not have any income until you sell or exchange your stock. 1040nr form Your employer can tell you which kind of option you hold. 1040nr form For more information, see Publication 525. 1040nr form Restricted Property In most cases, if you receive property for your services, you must include its fair market value in your income in the year you receive the property. 1040nr form However, if you receive stock or other property that has certain restrictions that affect its value, you do not include the value of the property in your income until it has substantially vested. 1040nr form (You can choose to include the value of the property in your income in the year it is transferred to you. 1040nr form ) For more information, see Restricted Property in Publication 525. 1040nr form Dividends received on restricted stock. 1040nr form   Dividends you receive on restricted stock are treated as compensation and not as dividend income. 1040nr form Your employer should include these payments on your Form W-2. 1040nr form Stock you chose to include in income. 1040nr form   Dividends you receive on restricted stock you chose to include in your income in the year transferred are treated the same as any other dividends. 1040nr form Report them on your return as dividends. 1040nr form For a discussion of dividends, see chapter 8. 1040nr form    For information on how to treat dividends reported on both your Form W-2 and Form 1099-DIV, see Dividends received on restricted stock in Publication 525. 1040nr form Special Rules for Certain Employees This section deals with special rules for people in certain types of employment: members of the clergy, members of religious orders, people working for foreign employers, military personnel, and volunteers. 1040nr form Clergy Generally, if you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. 1040nr form , in addition to your salary. 1040nr form If the offering is made to the religious institution, it is not taxable to you. 1040nr form If you are a member of a religious organization and you give your outside earnings to the religious organization, you still must include the earnings in your income. 1040nr form However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. 1040nr form See chapter 24. 1040nr form Pension. 1040nr form    A pension or retirement pay for a member of the clergy usually is treated as any other pension or annuity. 1040nr form It must be reported on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040nr form Housing. 1040nr form    Special rules for housing apply to members of the clergy. 1040nr form Under these rules, you do not include in your income the rental value of a home (including utilities) or a designated housing allowance provided to you as part of your pay. 1040nr form However, the exclusion cannot be more than the reasonable pay for your service. 1040nr form If you pay for the utilities, you can exclude any allowance designated for utility cost, up to your actual cost. 1040nr form The home or allowance must be provided as compensation for your services as an ordained, licensed, or commissioned minister. 1040nr form However, you must include the rental value of the home or the housing allowance as earnings from self-employment on Schedule SE (Form 1040) if you are subject to the self-employment tax. 1040nr form For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 1040nr form Members of Religious Orders If you are a member of a religious order who has taken a vow of poverty, how you treat earnings that you renounce and turn over to the order depends on whether your services are performed for the order. 1040nr form Services performed for the order. 1040nr form   If you are performing the services as an agent of the order in the exercise of duties required by the order, do not include in your income the amounts turned over to the order. 1040nr form   If your order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to be performing the services as an agent of the order. 1040nr form Any wages you earn as an agent of an order that you turn over to the order are not included in your income. 1040nr form Example. 1040nr form You are a member of a church order and have taken a vow of poverty. 1040nr form You renounce any claims to your earnings and turn over to the order any salaries or wages you earn. 1040nr form You are a registered nurse, so your order assigns you to work in a hospital that is an associated institution of the church. 1040nr form However, you remain under the general direction and control of the order. 1040nr form You are considered to be an agent of the order and any wages you earn at the hospital that you turn over to your order are not included in your income. 1040nr form Services performed outside the order. 1040nr form   If you are directed to work outside the order, your services are not an exercise of duties required by the order unless they meet both of the following requirements: They are the kind of services that are ordinarily the duties of members of the order. 1040nr form They are part of the duties that you must exercise for, or on behalf of, the religious order as its agent. 1040nr form If you are an employee of a third party, the services you perform for the third party will not be considered directed or required of you by the order. 1040nr form Amounts you receive for these services are included in your income, even if you have taken a vow of poverty. 1040nr form Example. 1040nr form Mark Brown is a member of a religious order and has taken a vow of poverty. 1040nr form He renounces all claims to his earnings and turns over his earnings to the order. 1040nr form Mark is a schoolteacher. 1040nr form He was instructed by the superiors of the order to get a job with a private tax-exempt school. 1040nr form Mark became an employee of the school, and, at his request, the school made the salary payments directly to the order. 1040nr form Because Mark is an employee of the school, he is performing services for the school rather than as an agent of the order. 1040nr form The wages Mark earns working for the school are included in his income. 1040nr form Foreign Employer Special rules apply if you work for a foreign employer. 1040nr form U. 1040nr form S. 1040nr form citizen. 1040nr form   If you are a U. 1040nr form S. 1040nr form citizen who works in the United States for a foreign government, an international organization, a foreign embassy, or any foreign employer, you must include your salary in your income. 1040nr form Social security and Medicare taxes. 1040nr form   You are exempt from social security and Medicare employee taxes if you are employed in the United States by an international organization or a foreign government. 1040nr form However, you must pay self-employment tax on your earnings from services performed in the United States, even though you are not self-employed. 1040nr form This rule also applies if you are an employee of a qualifying wholly owned instrumentality of a foreign government. 1040nr form Employees of international organizations or foreign governments. 1040nr form   Your compensation for official services to an international organization is exempt from federal income tax if you are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). 1040nr form   Your compensation for official services to a foreign government is exempt from federal income tax if all of the following are true. 1040nr form You are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). 1040nr form Your work is like the work done by employees of the United States in foreign countries. 1040nr form The foreign government gives an equal exemption to employees of the United States in its country. 1040nr form Waiver of alien status. 1040nr form   If you are an alien who works for a foreign government or international organization and you file a waiver under section 247(b) of the Immigration and Nationality Act to keep your immigrant status, different rules may apply. 1040nr form See Foreign Employer in Publication 525. 1040nr form Employment abroad. 1040nr form   For information on the tax treatment of income earned abroad, see Publication 54. 1040nr form Military Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. 1040nr form Allowances generally are not taxed. 1040nr form For more information on the tax treatment of military allowances and benefits, see Publication 3, Armed Forces' Tax Guide. 1040nr form Differential wage payments. 1040nr form   Any payments made to you by an employer during the time you are performing service in the uniformed services are treated as compensation. 1040nr form These wages are subject to income tax withholding and are reported on a Form W-2. 1040nr form See the discussion under Miscellaneous Compensation , earlier. 1040nr form Military retirement pay. 1040nr form   If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040nr form Do not include in your income the amount of any reduction in retirement or retainer pay to provide a survivor annuity for your spouse or children under the Retired Serviceman's Family Protection Plan or the Survivor Benefit Plan. 1040nr form   For more detailed discussion of survivor annuities, see chapter 10. 1040nr form Disability. 1040nr form   If you are retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later. 1040nr form Veterans' benefits. 1040nr form   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). 1040nr form The following amounts paid to veterans or their families are not taxable. 1040nr form Education, training, and subsistence allowances. 1040nr form Disability compensation and pension payments for disabilities paid either to veterans or their families. 1040nr form Grants for homes designed for wheelchair living. 1040nr form Grants for motor vehicles for veterans who lost their sight or the use of their limbs. 1040nr form Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death. 1040nr form Interest on insurance dividends you leave on deposit with the VA. 1040nr form Benefits under a dependent-care assistance program. 1040nr form The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001. 1040nr form Payments made under the compensated work therapy program. 1040nr form Any bonus payment by a state or political subdivision because of service in a combat zone. 1040nr form Volunteers The tax treatment of amounts you receive as a volunteer worker for the Peace Corps or similar agency is covered in the following discussions. 1040nr form Peace Corps. 1040nr form   Living allowances you receive as a Peace Corps volunteer or volunteer leader for housing, utilities, household supplies, food, and clothing are exempt from tax. 1040nr form Taxable allowances. 1040nr form   The following allowances must be included in your income and reported as wages: Allowances paid to your spouse and minor children while you are a volunteer leader training in the United States. 1040nr form Living allowances designated by the Director of the Peace Corps as basic compensation. 1040nr form These are allowances for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. 1040nr form Leave allowances. 1040nr form Readjustment allowances or termination payments. 1040nr form These are considered received by you when credited to your account. 1040nr form Example. 1040nr form Gary Carpenter, a Peace Corps volunteer, gets $175 a month as a readjustment allowance during his period of service, to be paid to him in a lump sum at the end of his tour of duty. 1040nr form Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. 1040nr form Volunteers in Service to America (VISTA). 1040nr form   If you are a VISTA volunteer, you must include meal and lodging allowances paid to you in your income as wages. 1040nr form National Senior Services Corps programs. 1040nr form   Do not include in your income amounts you receive for supportive services or reimbursements for out-of-pocket expenses from the following programs. 1040nr form Retired Senior Volunteer Program (RSVP). 1040nr form Foster Grandparent Program. 1040nr form Senior Companion Program. 1040nr form Service Corps of Retired Executives (SCORE). 1040nr form   If you receive amounts for supportive services or reimbursements for out-of-pocket expenses from SCORE, do not include these amounts in income. 1040nr form Volunteer tax counseling. 1040nr form   Do not include in your income any reimbursements you receive for transportation, meals, and other expenses you have in training for, or actually providing, volunteer federal income tax counseling for the elderly (TCE). 1040nr form   You can deduct as a charitable contribution your unreimbursed out-of-pocket expenses in taking part in the volunteer income tax assistance (VITA) program. 1040nr form See chapter 24. 1040nr form Sickness and Injury Benefits This section discusses sickness and injury benefits including disability pensions, long-term care insurance contracts, workers' compensation, and other benefits. 1040nr form In most cases, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. 1040nr form If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. 1040nr form However, certain payments may not be taxable to you. 1040nr form Your employer should be able to give you specific details about your pension plan and tell you the amount you paid for your disability pension. 1040nr form In addition to disability pensions and annuities, you may be receiving other payments for sickness and injury. 1040nr form Do not report as income any amounts paid to reimburse you for medical expenses you incurred after the plan was established. 1040nr form Cost paid by you. 1040nr form   If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 1040nr form If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. 1040nr form See Reimbursement in a later year in chapter 21. 1040nr form Cafeteria plans. 1040nr form   In most cases, if you are covered by an accident or health insurance plan through a cafeteria plan, and the amount of the insurance premiums was not included in your income, you are not considered to have paid the premiums and you must include any benefits you receive in your income. 1040nr form If the amount of the premiums was included in your income, you are considered to have paid the premiums, and any benefits you receive are not taxable. 1040nr form Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 1040nr form You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A, until you reach minimum retirement age. 1040nr form Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 1040nr form You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 1040nr form For information on this credit and the definition of permanent and total disability, see chapter 33. 1040nr form Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 1040nr form Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040nr form The rules for reporting pensions are explained in How To Report in chapter 10. 1040nr form For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see chapter 12. 1040nr form Retirement and profit-sharing plans. 1040nr form   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 1040nr form The payments must be reported as a pension or annuity. 1040nr form For more information on pensions, see chapter 10. 1040nr form Accrued leave payment. 1040nr form   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 1040nr form The payment is not a disability payment. 1040nr form Include it in your income in the tax year you receive it. 1040nr form Military and Government Disability Pensions Certain military and government disability pensions are not taxable. 1040nr form Service-connected disability. 1040nr form   You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services. 1040nr form The armed forces of any country. 1040nr form The National Oceanic and Atmospheric Administration. 1040nr form The Public Health Service. 1040nr form The Foreign Service. 1040nr form Conditions for exclusion. 1040nr form   Do not include the disability payments in your income if any of the following conditions apply. 1040nr form You were entitled to receive a disability payment before September 25, 1975. 1040nr form You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975. 1040nr form You receive the disability payments for a combat-related injury. 1040nr form This is a personal injury or sickness that Results directly from armed conflict, Takes place while you are engaged in extra-hazardous service, Takes place under conditions simulating war, including training exercises such as maneuvers, or Is caused by an instrumentality of war. 1040nr form You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. 1040nr form Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. 1040nr form Pension based on years of service. 1040nr form   If you receive a disability pension based on years of service, in most cases you must include it in your income. 1040nr form However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), do not include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. 1040nr form You must include the rest of your pension in your income. 1040nr form Retroactive VA determination. 1040nr form   If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. 1040nr form You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040X for each previous year during the retroactive period. 1040nr form You must include with each Form 1040X a copy of the official VA Determination letter granting the retroactive benefit. 1040nr form The letter must show the amount withheld and the effective date of the benefit. 1040nr form   If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. 1040nr form However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you are later given a retroactive disability rating by the VA. 1040nr form Special statute of limitations. 1040nr form   In most cases, under the statute of limitations a claim for credit or refund must be filed within 3 years from the time a return was filed. 1040nr form However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. 1040nr form This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and does not apply to any tax year that began more than 5 years before the date of the determination. 1040nr form Example. 1040nr form You retired in 2007 and receive a pension based on your years of service. 1040nr form On August 1, 2013, you receive a determination of service-connected disability retroactive to 2007. 1040nr form Generally, you could claim a refund for the taxes paid on your pension for 2010, 2011, and 2012. 1040nr form However, under the special limitation period, you can also file a claim for 2009 as long as you file the claim by August 1, 2014. 1040nr form You cannot file a claim for 2007 and 2008 because those tax years began more than 5 years before the determination. 1040nr form Terrorist attack or military action. 1040nr form   Do not include in your income disability payments you receive for injuries resulting directly from a terrorist or military action. 1040nr form Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. 1040nr form Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. 1040nr form To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. 1040nr form A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. 1040nr form The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits, and In most cases, not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. 1040nr form Qualified long-term care services. 1040nr form   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance and personal care services, and Required by a chronically ill individual and provided pursuant to a plan of care as prescribed by a licensed health care practitioner. 1040nr form Chronically ill individual. 1040nr form   A chronically ill individual is one who has been certified by a licensed health care practitioner within the previous 12 months as one of the following: An individual who, for at least 90 days, is unable to perform at least two activities of daily living without substantial assistance due to loss of functional capacity. 1040nr form Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. 1040nr form An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 1040nr form Limit on exclusion. 1040nr form   You generally can exclude from gross income up to $320 a day for 2013. 1040nr form See Limit on exclusion, under Long-Term Care Insurance Contracts, under Sickness and Injury Benefits in Publication 525 for more information. 1040nr form Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. 1040nr form The exemption also applies to your survivors. 1040nr form The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. 1040nr form If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 1040nr form For more information, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 1040nr form Return to work. 1040nr form    If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 1040nr form Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 1040nr form Railroad sick pay. 1040nr form    Payments you receive as sick pay under the Railroad Unemployment Insurance Act are taxable and you must include them in your income. 1040nr form However, do not include them in your income if they are for an on-the-job injury. 1040nr form   If you received income because of a disability, see Disability Pensions , earlier. 1040nr form Federal Employees' Compensation Act (FECA). 1040nr form   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 1040nr form However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. 1040nr form Report this income on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040-EZ. 1040nr form Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 1040nr form    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 1040nr form For a discussion of the taxability of these benefits, see Social security and equivalent railroad retirement benefits under Other Income, in Publication 525. 1040nr form    You can deduct the amount you spend to buy back sick leave for an earlier year to be eligible for nontaxable FECA benefits for that period. 1040nr form It is a miscellaneous deduction subject to the 2%-of-AGI limit on Schedule A (Form 1040). 1040nr form If you buy back sick leave in the same year you used it, the amount reduces your taxable sick leave pay. 1040nr form Do not deduct it separately. 1040nr form Other compensation. 1040nr form   Many other amounts you receive as compensation for sickness or injury are not taxable. 1040nr form These include the following amounts. 1040nr form Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments. 1040nr form Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. 1040nr form Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 1040nr form Compensation you receive for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. 1040nr form This compensation must be based only on the injury and not on the period of your absence from work. 1040nr form These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 1040nr form Reimbursement for medical care. 1040nr form    A reimbursement for medical care is generally not taxable. 1040nr form However, it may reduce your medical expense deduction. 1040nr form For more information, see chapter 21. 1040nr form Prev  Up  Next   Home   More Online Publications