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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

1040x 2013

File 2011 Taxes Free OnlineHow To Do An Amended ReturnFree State Tax Return2013 Form 1040ezFree Income Tax Preparation 2007Where Can I File 2011 TaxesI Need The 1040x FormIrs Gov FormsTax Software 2012Fillable 1040ez Form 2012Income Tax Return Filing1040ez Tax Form And Booklet2012 Income Tax Filing1040ez Form Download1040ez Online FreeE File 2012 Tax ReturnState Income Tax Form 500ezIt 1040ezFile State And Federal Taxes FreeIrs Tax Forms For 2010Turbotax 2010 OnlineHow To File 1040x Online2010 New Car Tax CreditTaxes 1040ezHow To Fill Out 1040ez Form1040 Ez File Online Free1040ez BookletFree E File 2010Refile TaxesFree Tax ServicesFree 1040ezHow To Do TaxesFile 2010 Taxes TurbotaxAmending Tax ReturnsHow To File Past TaxesTax Forms For 20121040Tax Forms 1040ezIrs1040ez FormHow Do I File My 2009 Taxes Online

1040x 2013

1040x 2013 28. 1040x 2013   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. 1040x 2013  The 2013 rate for business use of a vehicle is 56½ cents per mile. 1040x 2013 Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). 1040x 2013 You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. 1040x 2013 This chapter covers the following topics. 1040x 2013 Deductions subject to the 2% limit. 1040x 2013 Deductions not subject to the 2% limit. 1040x 2013 Expenses you cannot deduct. 1040x 2013 You must keep records to verify your deductions. 1040x 2013 You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. 1040x 2013 For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. 1040x 2013 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). 1040x 2013 You can claim the amount of expenses that is more than 2% of your adjusted gross income. 1040x 2013 You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. 1040x 2013 Your adjusted gross income is the amount on Form 1040, line 38. 1040x 2013 Generally, you apply the 2% limit after you apply any other deduction limit. 1040x 2013 For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. 1040x 2013 Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). 1040x 2013 Unreimbursed employee expenses (line 21). 1040x 2013 Tax preparation fees (line 22). 1040x 2013 Other expenses (line 23). 1040x 2013 Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. 1040x 2013 An expense is ordinary if it is common and accepted in your trade, business, or profession. 1040x 2013 An expense is necessary if it is appropriate and helpful to your business. 1040x 2013 An expense does not have to be required to be considered necessary. 1040x 2013 Examples of unreimbursed employee expenses are listed next. 1040x 2013 The list is followed by discussions of additional unreimbursed employee expenses. 1040x 2013 Business bad debt of an employee. 1040x 2013 Education that is work related. 1040x 2013 (See chapter 27. 1040x 2013 ) Legal fees related to your job. 1040x 2013 Licenses and regulatory fees. 1040x 2013 Malpractice insurance premiums. 1040x 2013 Medical examinations required by an employer. 1040x 2013 Occupational taxes. 1040x 2013 Passport for a business trip. 1040x 2013 Subscriptions to professional journals and trade magazines related to your work. 1040x 2013 Travel, transportation, entertainment, and gifts related to your work. 1040x 2013 (See chapter 26. 1040x 2013 ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. 1040x 2013 Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. 1040x 2013 Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. 1040x 2013 For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. 1040x 2013 Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. 1040x 2013 Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. 1040x 2013 Lobbying and political activities. 1040x 2013   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. 1040x 2013 See Dues used for lobbying under Nondeductible Expenses, later. 1040x 2013 Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. 1040x 2013 If you file Form 1040A, you can deduct these expenses on line 16. 1040x 2013 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 1040x 2013 However, neither spouse can deduct more than $250 of his or her qualified expenses. 1040x 2013 Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. 1040x 2013 You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. 1040x 2013 The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. 1040x 2013 See Publication 587 for more detailed information and a worksheet. 1040x 2013 Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. 1040x 2013 You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. 1040x 2013 Employment and outplacement agency fees. 1040x 2013   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. 1040x 2013 Employer pays you back. 1040x 2013   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. 1040x 2013 (See Recoveries in chapter 12. 1040x 2013 ) Employer pays the employment agency. 1040x 2013   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. 1040x 2013 Résumé. 1040x 2013   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. 1040x 2013 Travel and transportation expenses. 1040x 2013   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. 1040x 2013 You can deduct the travel expenses if the trip is primarily to look for a new job. 1040x 2013 The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. 1040x 2013   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. 1040x 2013   You can choose to use the standard mileage rate to figure your car expenses. 1040x 2013 The 2013 rate for business use of a vehicle is 56½ cents per mile. 1040x 2013 See chapter 26 for more information. 1040x 2013 Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. 1040x 2013 Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. 1040x 2013 If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. 1040x 2013 Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. 1040x 2013 If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. 1040x 2013 Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. 1040x 2013 You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. 1040x 2013 However, you cannot deduct the cost of travel as a form of education. 1040x 2013 Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. 1040x 2013 You can depreciate the cost of tools that have a useful life substantially beyond the tax year. 1040x 2013 For more information about depreciation, see Publication 946. 1040x 2013 Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. 1040x 2013 You can also deduct assessments for benefit payments to unemployed union members. 1040x 2013 However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. 1040x 2013 Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. 1040x 2013 You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. 1040x 2013 See Lobbying Expenses under Nondeductible Expenses, later. 1040x 2013 Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. 1040x 2013 You must wear them as a condition of your employment. 1040x 2013 The clothes are not suitable for everyday wear. 1040x 2013 It is not enough that you wear distinctive clothing. 1040x 2013 The clothing must be specifically required by your employer. 1040x 2013 Nor is it enough that you do not, in fact, wear your work clothes away from work. 1040x 2013 The clothing must not be suitable for taking the place of your regular clothing. 1040x 2013 Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. 1040x 2013 ). 1040x 2013 Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. 1040x 2013 However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. 1040x 2013 Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. 1040x 2013 Protective clothing. 1040x 2013   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. 1040x 2013   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. 1040x 2013 Military uniforms. 1040x 2013   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. 1040x 2013 However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. 1040x 2013 In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. 1040x 2013   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. 1040x 2013   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. 1040x 2013 Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. 1040x 2013 Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. 1040x 2013 These fees include the cost of tax preparation software programs and tax publications. 1040x 2013 They also include any fee you paid for electronic filing of your return. 1040x 2013 Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. 1040x 2013 On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. 1040x 2013 You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. 1040x 2013 Some of these other expenses are explained in the following discussions. 1040x 2013 If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. 1040x 2013 Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. 1040x 2013 Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. 1040x 2013 First report the loss in Section B of Form 4684, Casualties and Thefts. 1040x 2013 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. 1040x 2013 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. 1040x 2013 For other casualty and theft losses, see chapter 25. 1040x 2013 Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. 1040x 2013 Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. 1040x 2013 The fees are deductible in the year paid. 1040x 2013 Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). 1040x 2013 You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. 1040x 2013 But if you work as an employee and also use the computer in that work, see Publication 946. 1040x 2013 Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. 1040x 2013 Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. 1040x 2013 The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. 1040x 2013 For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. 1040x 2013 Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. 1040x 2013 But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. 1040x 2013 You must add the fee to the cost of the property. 1040x 2013 You cannot deduct the fee you pay to a broker to sell securities. 1040x 2013 You can use the fee only to figure gain or loss from the sale. 1040x 2013 See the Instructions for Form 8949 for information on how to report the fee. 1040x 2013 Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. 1040x 2013 A hobby is not a business because it is not carried on to make a profit. 1040x 2013 See Activity not for profit in chapter 12 under Other Income. 1040x 2013 Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. 1040x 2013 Deductions of pass-through entities are passed through to the partners or shareholders. 1040x 2013 The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. 1040x 2013 Example. 1040x 2013 You are a member of an investment club that is formed solely to invest in securities. 1040x 2013 The club is treated as a partnership. 1040x 2013 The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. 1040x 2013 In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. 1040x 2013 However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. 1040x 2013 Publicly offered mutual funds. 1040x 2013   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. 1040x 2013 A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. 1040x 2013   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). 1040x 2013 This net figure is the amount you report on your return as income. 1040x 2013 You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. 1040x 2013 Information returns. 1040x 2013   You should receive information returns from pass-through entities. 1040x 2013 Partnerships and S corporations. 1040x 2013   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. 1040x 2013 Nonpublicly offered mutual funds. 1040x 2013   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. 1040x 2013 You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. 1040x 2013 Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. 1040x 2013 Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. 1040x 2013 You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. 1040x 2013 You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. 1040x 2013 You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). 1040x 2013 See Tax Preparation Fees , earlier. 1040x 2013 Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. 1040x 2013 Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. 1040x 2013 If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. 1040x 2013 If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. 1040x 2013 Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. 1040x 2013 Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. 1040x 2013 You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. 1040x 2013 Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. 1040x 2013 These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. 1040x 2013 Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. 1040x 2013 For more information about IRAs, see chapter 17. 1040x 2013 Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. 1040x 2013 They are not subject to the 2% limit. 1040x 2013 Report these items on Schedule A (Form 1040), line 28. 1040x 2013 List of Deductions Each of the following items is discussed in detail after the list (except where indicated). 1040x 2013 Amortizable premium on taxable bonds. 1040x 2013 Casualty and theft losses from income- producing property. 1040x 2013 Federal estate tax on income in respect of a decedent. 1040x 2013 Gambling losses up to the amount of gambling winnings. 1040x 2013 Impairment-related work expenses of persons with disabilities. 1040x 2013 Loss from other activities from Schedule K-1 (Form 1065-B), box 2. 1040x 2013 Losses from Ponzi-type investment schemes. 1040x 2013 See Losses from Ponzi-type investment schemes under Theft in chapter 25. 1040x 2013 Repayments of more than $3,000 under a claim of right. 1040x 2013 Unrecovered investment in an annuity. 1040x 2013 Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. 1040x 2013 You can elect to amortize the premium on taxable bonds. 1040x 2013 The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. 1040x 2013 Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. 1040x 2013 For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. 1040x 2013 Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). 1040x 2013 First, report the loss in Form 4684, Section B. 1040x 2013 You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. 1040x 2013 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. 1040x 2013 For more information on casualty and theft losses, see chapter 25. 1040x 2013 Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. 1040x 2013 Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. 1040x 2013 See Publication 559 for more information. 1040x 2013 Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. 1040x 2013 You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. 1040x 2013 You cannot deduct gambling losses that are more than your winnings. 1040x 2013 You cannot reduce your gambling winnings by your gambling losses and report the difference. 1040x 2013 You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. 1040x 2013 Therefore, your records should show your winnings separately from your losses. 1040x 2013 Diary of winnings and losses. 1040x 2013 You must keep an accurate diary or similar record of your losses and winnings. 1040x 2013 Your diary should contain at least the following information. 1040x 2013 The date and type of your specific wager or wagering activity. 1040x 2013 The name and address or location of the gambling establishment. 1040x 2013 The names of other persons present with you at the gambling establishment. 1040x 2013 The amount(s) you won or lost. 1040x 2013 See Publication 529 for more information. 1040x 2013 Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. 1040x 2013 Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. 1040x 2013 Self-employed. 1040x 2013   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. 1040x 2013 Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. 1040x 2013 It is not subject to the passive activity limitations. 1040x 2013 Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. 1040x 2013 See Repayments in chapter 12 for more information. 1040x 2013 Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. 1040x 2013 If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. 1040x 2013 See chapter 10 for more information about the tax treatment of pensions and annuities. 1040x 2013 Nondeductible Expenses Examples of nondeductible expenses are listed next. 1040x 2013 The list is followed by discussions of additional nondeductible expenses. 1040x 2013 List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. 1040x 2013 Burial or funeral expenses, including the cost of a cemetery lot. 1040x 2013 Capital expenses. 1040x 2013 Fees and licenses, such as car licenses, marriage licenses, and dog tags. 1040x 2013 Hobby losses, but see Hobby Expenses , earlier. 1040x 2013 Home repairs, insurance, and rent. 1040x 2013 Illegal bribes and kickbacks. 1040x 2013 See Bribes and kickbacks in chapter 11 of Publication 535. 1040x 2013 Losses from the sale of your home, furniture, personal car, etc. 1040x 2013 Personal disability insurance premiums. 1040x 2013 Personal, living, or family expenses. 1040x 2013 The value of wages never received or lost vacation time. 1040x 2013 Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. 1040x 2013 See chapter 37. 1040x 2013 Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. 1040x 2013 These include qualification and registration fees for primary elections. 1040x 2013 Legal fees. 1040x 2013   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. 1040x 2013 Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. 1040x 2013 Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. 1040x 2013 This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. 1040x 2013 You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. 1040x 2013 Dues paid to airline, hotel, and luncheon clubs are not deductible. 1040x 2013 Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). 1040x 2013 If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. 1040x 2013 Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. 1040x 2013 This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). 1040x 2013 Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. 1040x 2013 Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. 1040x 2013 Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. 1040x 2013 However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. 1040x 2013 See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. 1040x 2013 Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. 1040x 2013 Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. 1040x 2013 You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. 1040x 2013 See chapter 18 for information on alimony. 1040x 2013 Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. 1040x 2013 These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. 1040x 2013 Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. 1040x 2013 Dues used for lobbying. 1040x 2013   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. 1040x 2013 See Lobbying Expenses in Publication 529 for information on exceptions. 1040x 2013 Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. 1040x 2013 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. 1040x 2013 See chapter 25. 1040x 2013 Example. 1040x 2013 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. 1040x 2013 The diamond falls from the ring and is never found. 1040x 2013 The loss of the diamond is a casualty. 1040x 2013 Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. 1040x 2013 See chapter 26 for information on deductible expenses while traveling away from home. 1040x 2013 Meals While Working Late You cannot deduct the cost of meals while working late. 1040x 2013 However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. 1040x 2013 See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. 1040x 2013 Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. 1040x 2013 Custody of children. 1040x 2013 Breach of promise to marry suit. 1040x 2013 Civil or criminal charges resulting from a personal relationship. 1040x 2013 Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. 1040x 2013 Preparation of a title (or defense or perfection of a title). 1040x 2013 Preparation of a will. 1040x 2013 Property claims or property settlement in a divorce. 1040x 2013 You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. 1040x 2013 Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. 1040x 2013 Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. 1040x 2013 Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. 1040x 2013 Accounting certificate fees paid for the initial right to practice accounting. 1040x 2013 Bar exam fees and incidental expenses in securing initial admission to the bar. 1040x 2013 Medical and dental license fees paid to get initial licensing. 1040x 2013 Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. 1040x 2013 Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. 1040x 2013 Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. 1040x 2013 Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. 1040x 2013 You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. 1040x 2013 Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. 1040x 2013 You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. 1040x 2013 If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. 1040x 2013 Example. 1040x 2013 During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. 1040x 2013 In earning this income, you had total expenses of $500 during the year. 1040x 2013 You cannot identify the amount of each expense item that is for each income item. 1040x 2013 Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. 1040x 2013 You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). 1040x 2013 Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. 1040x 2013 See chapter 26 for more information on deductible travel expenses. 1040x 2013 Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. 1040x 2013 However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. 1040x 2013 Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. 1040x 2013 Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Relief for Victims of Hurricane Irene in North Carolina

E-file to Remain Available for Irene Victims through Oct. 31

Updated 10/11/11 to include Bladen, Columbus and Sampson counties.

Updated 9/12/11 to include Pender and Wayne counties.

Updated 9/7/11 to include Bertie, Brunswick, Camden, Chowan, Duplin, Edgecombe, Gates, Greene, Hertford, Johnston, Jones, Martin, Nash, New Hanover, Northampton, Pasquotank, Perquimans, Vance, Warren and Wilson counties.

Updated 9/2/11 to include Halifax and Lenoir counties. Also added Currituck, Onslow, Pitt and Washington counties.

NC-2011-58, Sept. 1, 2011

GREENSBORO — Victims of Hurricane Irene that began on Aug. 25, 2011 in parts of North Carolina may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Sampson, Tyrrell, Vance, Warren, Washington, Wayne and Wilson. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 25, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 25, and on or before Sept. 9, as long as the deposits are made by Sept. 9, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 25 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 25 and on or before Oct. 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 25 and on or before Sept. 9 provided the taxpayer makes these deposits by Sept. 9.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “North Carolina/Hurricane Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

Page Last Reviewed or Updated: 24-Mar-2014

The 1040x 2013

1040x 2013 1. 1040x 2013   Nonresident Alien or Resident Alien? Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Nonresident Aliens Resident AliensGreen Card Test Substantial Presence Test Effect of Tax Treaties Dual-Status AliensFirst Year of Residency Choosing Resident Alien Status Last Year of Residency Nonresident Spouse Treated as a ResidentHow To Make the Choice Aliens From American Samoa or Puerto Rico Introduction You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien. 1040x 2013 If you are both a nonresident and resident in the same year, you have a dual status. 1040x 2013 Dual status is explained later. 1040x 2013 Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. 1040x 2013 Topics - This chapter discusses: How to determine if you are a nonresident, resident, or dual-status alien, and How to treat a nonresident spouse as a resident alien. 1040x 2013 Useful Items - You may want to see: Form (and Instructions) 1040 U. 1040x 2013 S. 1040x 2013 Individual Income Tax Return 1040A U. 1040x 2013 S. 1040x 2013 Individual Income Tax Return 1040NR U. 1040x 2013 S. 1040x 2013 Nonresident Alien Income Tax Return 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 8840 Closer Connection Exception Statement for Aliens 8843 Statement for Exempt Individuals and Individuals With a Medical Condition See chapter 12 for information about getting these forms. 1040x 2013 Nonresident Aliens If you are an alien (not a U. 1040x 2013 S. 1040x 2013 citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. 1040x 2013 Resident Aliens You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2013 (January 1–December 31). 1040x 2013 Even if you do not meet either of these tests, you may be able to choose to be treated as a U. 1040x 2013 S. 1040x 2013 resident for part of the year. 1040x 2013 See First-Year Choice under Dual-Status Aliens, later. 1040x 2013 Green Card Test You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. 1040x 2013 (However, see Dual-Status Aliens , later. 1040x 2013 ) This is known as the “green card” test. 1040x 2013 You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. 1040x 2013 You generally have this status if the U. 1040x 2013 S. 1040x 2013 Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. 1040x 2013 ” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. 1040x 2013 Resident status taken away. 1040x 2013   Resident status is considered to have been taken away from you if the U. 1040x 2013 S. 1040x 2013 government issues you a final administrative or judicial order of exclusion or deportation. 1040x 2013 A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. 1040x 2013 Resident status abandoned. 1040x 2013   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. 1040x 2013 S. 1040x 2013 consular officer. 1040x 2013    If you initiate the determination, your resident status is considered to be abandoned when you file either of the following with the USCIS or U. 1040x 2013 S. 1040x 2013 consular officer. 1040x 2013 Your application for abandonment. 1040x 2013 Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. 1040x 2013 You must file the letter by certified mail, return receipt requested. 1040x 2013 You must keep a copy of the letter and proof that it was mailed and received. 1040x 2013    Until you have proof your letter was received, you remain a resident alien for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time. 1040x 2013   If the USCIS or U. 1040x 2013 S. 1040x 2013 consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. 1040x 2013 If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. 1040x 2013   Under U. 1040x 2013 S. 1040x 2013 immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. 1040x 2013    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. 1040x 2013 See Expatriation Tax in chapter 4. 1040x 2013 Termination of residency after June 3, 2004, and before June 17, 2008. 1040x 2013   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. 1040x 2013 S. 1040x 2013 resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. 1040x 2013 Termination of residency after June 16, 2008. 1040x 2013   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. 1040x 2013 Substantial Presence Test You will be considered a U. 1040x 2013 S. 1040x 2013 resident for tax purposes if you meet the substantial presence test for calendar year 2013. 1040x 2013 To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011. 1040x 2013 Example. 1040x 2013 You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. 1040x 2013 To determine if you meet the substantial presence test for 2013, count the full 120 days of presence in 2013, 40 days in 2012 (1/3 of 120), and 20 days in 2011 (1/6 of 120). 1040x 2013 Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. 1040x 2013 The term United States includes the following areas. 1040x 2013 All 50 states and the District of Columbia. 1040x 2013 The territorial waters of the United States. 1040x 2013 The seabed and subsoil of those submarine areas that are adjacent to U. 1040x 2013 S. 1040x 2013 territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. 1040x 2013 The term does not include U. 1040x 2013 S. 1040x 2013 possessions and territories or U. 1040x 2013 S. 1040x 2013 airspace. 1040x 2013 Days of Presence in the United States You are treated as present in the United States on any day you are physically present in the country at any time during the day. 1040x 2013 However, there are exceptions to this rule. 1040x 2013 Do not count the following as days of presence in the United States for the substantial presence test. 1040x 2013 Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. 1040x 2013 Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. 1040x 2013 Days you are in the United States as a crew member of a foreign vessel. 1040x 2013 Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. 1040x 2013 Days you are an exempt individual. 1040x 2013 The specific rules that apply to each of these categories are discussed next. 1040x 2013 Regular commuters from Canada or Mexico. 1040x 2013   Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. 1040x 2013 You are considered to commute regularly if you commute to work in the United States on more than 75% of the workdays during your working period. 1040x 2013   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. 1040x 2013 “Workdays” are the days on which you work in the United States or Canada or Mexico. 1040x 2013 “Working period” means the period beginning with the first day in the current year on which you are physically present in the United States to work and ending on the last day in the current year on which you are physically present in the United States to work. 1040x 2013 If your work requires you to be present in the United States only on a seasonal or cyclical basis, your working period begins on the first day of the season or cycle on which you are present in the United States to work and ends on the last day of the season or cycle on which you are present in the United States to work. 1040x 2013 You can have more than one working period in a calendar year, and your working period can begin in one calendar year and end in the following calendar year. 1040x 2013 Example. 1040x 2013 Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. 1040x 2013 She was assigned to her firm's office in the United States from February 1 through June 1. 1040x 2013 On June 2, she resumed her employment in Mexico. 1040x 2013 On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. 1040x 2013 S. 1040x 2013 office. 1040x 2013 She returned to her home in Mexico on each of those evenings. 1040x 2013 On 7 days, she worked in her firm's Mexico office. 1040x 2013 For purposes of the substantial presence test, Maria does not count the days she commuted to work in the United States because those days equal more than 75% of the workdays during the working period (69 workdays in the United States divided by 76 workdays in the working period equals 90. 1040x 2013 8%). 1040x 2013 Days in transit. 1040x 2013   Do not count the days you are in the United States for less than 24 hours and you are in transit between two places outside the United States. 1040x 2013 You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. 1040x 2013 For example, if you travel between airports in the United States to change planes en route to your foreign destination, you are considered to be in transit. 1040x 2013 However, you are not considered to be in transit if you attend a business meeting while in the United States. 1040x 2013 This is true even if the meeting is held at the airport. 1040x 2013 Crew members. 1040x 2013   Do not count the days you are temporarily present in the United States as a regular crew member of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a U. 1040x 2013 S. 1040x 2013 possession. 1040x 2013 However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. 1040x 2013 Medical condition. 1040x 2013   Do not count the days you intended to leave, but could not leave the United States because of a medical condition or problem that arose while you were in the United States. 1040x 2013 Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. 1040x 2013 For example, you may be able to establish that you intended to leave if your purpose for visiting the United States could be accomplished during a period that is not long enough to qualify you for the substantial presence test. 1040x 2013 However, if you need an extended period of time to accomplish the purpose of your visit and that period would qualify you for the substantial presence test, you would not be able to establish an intent to leave the United States before the end of that extended period. 1040x 2013   In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can be determined by analyzing the individual's pattern of behavior before he or she was judged mentally incompetent. 1040x 2013   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. 1040x 2013 See Form 8843 , later. 1040x 2013   You cannot exclude any days of presence in the United States under the following circumstances. 1040x 2013 You were initially prevented from leaving, were then able to leave, but remained in the United States beyond a reasonable period for making arrangements to leave. 1040x 2013 You returned to the United States for treatment of a medical condition that arose during a prior stay. 1040x 2013 The condition existed before your arrival in the United States and you were aware of the condition. 1040x 2013 It does not matter whether you needed treatment for the condition when you entered the United States. 1040x 2013 Exempt individual. 1040x 2013   Do not count days for which you are an exempt individual. 1040x 2013 The term “exempt individual” does not refer to someone exempt from U. 1040x 2013 S. 1040x 2013 tax, but to anyone in the following categories. 1040x 2013 An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. 1040x 2013 A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa. 1040x 2013 A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa. 1040x 2013 A professional athlete temporarily in the United States to compete in a charitable sports event. 1040x 2013   The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next. 1040x 2013 Foreign government-related individuals. 1040x 2013   A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States: As a full-time employee of an international organization, By reason of diplomatic status, or By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status. 1040x 2013 Note. 1040x 2013 You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. 1040x 2013    An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. 1040x 2013 An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. 1040x 2013   An individual is considered to have full-time diplomatic or consular status if he or she: Has been accredited by a foreign government that is recognized by the United States, Intends to engage primarily in official activities for that foreign government while in the United States, and Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status. 1040x 2013 Note. 1040x 2013 If you are present in the United States under an “A” or “G” visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). 1040x 2013 None of your days count for purposes of the substantial presence test. 1040x 2013   Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and dependent on the exempt individual's visa classification. 1040x 2013 Unmarried children are included only if they: Are under 21 years of age, Reside regularly in the exempt individual's household, and Are not members of another household. 1040x 2013 Teachers and trainees. 1040x 2013   A teacher or trainee is an individual, other than a student, who is temporarily in the United States under a “J” or “Q” visa and substantially complies with the requirements of that visa. 1040x 2013 You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. 1040x 2013 S. 1040x 2013 immigration laws and could result in the loss of your visa status. 1040x 2013   Also included are immediate family members of exempt teachers and trainees. 1040x 2013 See the definition of immediate family, earlier, under Foreign government-related individuals . 1040x 2013   You will not be an exempt individual as a teacher or trainee in 2013 if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years. 1040x 2013 However, you will be an exempt individual if all of the following conditions are met. 1040x 2013 You were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years, A foreign employer paid all of your compensation during 2013, and A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee. 1040x 2013 A foreign employer includes an office or place of business of an American entity in a foreign country or a U. 1040x 2013 S. 1040x 2013 possession. 1040x 2013   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. 1040x 2013 See Form 8843 , later. 1040x 2013 Example. 1040x 2013 Carla was temporarily in the United States during the year as a teacher on a “J” visa. 1040x 2013 Her compensation for the year was paid by a foreign employer. 1040x 2013 Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. 1040x 2013 She will not be considered an exempt individual for the current year because she was exempt as a teacher for at least 2 of the past 6 years. 1040x 2013 If her compensation for the past 2 years had been paid by a foreign employer, she would be an exempt individual for the current year. 1040x 2013 Students. 1040x 2013   A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and who substantially complies with the requirements of that visa. 1040x 2013 You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. 1040x 2013 S. 1040x 2013 immigration laws and could result in the loss of your visa status. 1040x 2013   Also included are immediate family members of exempt students. 1040x 2013 See the definition of immediate family, earlier, under Foreign government-related individuals . 1040x 2013   You will not be an exempt individual as a student in 2013 if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you meet both of the following requirements. 1040x 2013 You establish that you do not intend to reside permanently in the United States. 1040x 2013 You have substantially complied with the requirements of your visa. 1040x 2013 The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited to, the following. 1040x 2013 Whether you have maintained a closer connection to a foreign country (discussed later). 1040x 2013 Whether you have taken affirmative steps to change your status from nonimmigrant to lawful permanent resident as discussed later under Closer Connection to a Foreign Country . 1040x 2013   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. 1040x 2013 See Form 8843 , later. 1040x 2013 Professional athletes. 1040x 2013   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. 1040x 2013 A charitable sports event is one that meets the following conditions. 1040x 2013 The main purpose is to benefit a qualified charitable organization. 1040x 2013 The entire net proceeds go to charity. 1040x 2013 Volunteers perform substantially all the work. 1040x 2013   In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in a sports event. 1040x 2013 You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. 1040x 2013   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. 1040x 2013 See Form 8843 , next. 1040x 2013 Form 8843. 1040x 2013   If you exclude days of presence in the United States because you fall into any of the following categories, you must file a fully completed Form 8843. 1040x 2013 You were unable to leave the United States as planned because of a medical condition or problem. 1040x 2013 You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. 1040x 2013 You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. 1040x 2013 You were a professional athlete competing in a charitable sports event. 1040x 2013 Attach Form 8843 to your 2013 income tax return. 1040x 2013 If you do not have to file a return, send Form 8843 to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. 1040x 2013 The due date for filing is discussed in chapter 7. 1040x 2013 If you do not timely file Form 8843, you cannot exclude the days you were present in the United States as a professional athlete or because of a medical condition that arose while you were in the United States. 1040x 2013 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. 1040x 2013 Closer Connection to a Foreign Country Even if you meet the substantial presence test, you can be treated as a nonresident alien if you: Are present in the United States for less than 183 days during the year, Maintain a tax home in a foreign country during the year, and Have a closer connection during the year to one foreign country in which you have a tax home than to the United States (unless you have a closer connection to two foreign countries, discussed next). 1040x 2013 Closer connection to two foreign countries. 1040x 2013   You can demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of the following conditions. 1040x 2013 You maintained a tax home beginning on the first day of the year in one foreign country. 1040x 2013 You changed your tax home during the year to a second foreign country. 1040x 2013 You continued to maintain your tax home in the second foreign country for the rest of the year. 1040x 2013 You had a closer connection to each foreign country than to the United States for the period during which you maintained a tax home in that foreign country. 1040x 2013 You are subject to tax as a resident under the tax laws of either foreign country for the entire year or subject to tax as a resident in both foreign countries for the period during which you maintained a tax home in each foreign country. 1040x 2013 Tax home. 1040x 2013   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. 1040x 2013 Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 1040x 2013 If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. 1040x 2013 If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040x 2013   For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country to which you are claiming to have a closer connection. 1040x 2013 Foreign country. 1040x 2013   In determining whether you have a closer connection to a foreign country, the term “foreign country” means: Any territory under the sovereignty of the United Nations or a government other than that of the United States, The territorial waters of the foreign country (determined under U. 1040x 2013 S. 1040x 2013 law), The seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and Possessions and territories of the United States. 1040x 2013 Establishing a closer connection. 1040x 2013   You will be considered to have a closer connection to a foreign country than the United States if you or the IRS establishes that you have maintained more significant contacts with the foreign country than with the United States. 1040x 2013 In determining whether you have maintained more significant contacts with the foreign country than with the United States, the facts and circumstances to be considered include, but are not limited to, the following. 1040x 2013 The country of residence you designate on forms and documents. 1040x 2013 The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. 1040x 2013 The location of: Your permanent home, Your family, Your personal belongings, such as cars, furniture, clothing, and jewelry, Your current social, political, cultural, professional, or religious affiliations, Your business activities (other than those that constitute your tax home), The jurisdiction in which you hold a driver's license, The jurisdiction in which you vote, and Charitable organizations to which you contribute. 1040x 2013 It does not matter whether your permanent home is a house, an apartment, or a furnished room. 1040x 2013 It also does not matter whether you rent or own it. 1040x 2013 It is important, however, that your home be available at all times, continuously, and not solely for short stays. 1040x 2013 When you cannot have a closer connection. 1040x 2013   You cannot claim you have a closer connection to a foreign country if either of the following applies: You personally applied, or took other steps during the year, to change your status to that of a permanent resident, or You had an application pending for adjustment of status during the current year. 1040x 2013 Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. 1040x 2013 Form I-508, Waiver of Rights, Privileges, Exemptions and Immunities Form I-485, Application to Register Permanent Residence or Adjust Status Form I-130, Petition for Alien Relative, on your behalf Form I-140, Immigrant Petition for Alien Worker, on your behalf Form ETA-750, Application for Alien Employment Certification, on your behalf Form DS-230, Application for Immigrant Visa and Alien Registration Form 8840. 1040x 2013   You must attach a fully completed Form 8840 to your income tax return to claim you have a closer connection to a foreign country or countries. 1040x 2013   If you do not have to file a return, send the form to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. 1040x 2013 The due date for filing is discussed later in chapter 7. 1040x 2013   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. 1040x 2013 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. 1040x 2013 Effect of Tax Treaties The rules given here to determine if you are a U. 1040x 2013 S. 1040x 2013 resident do not override tax treaty definitions of residency. 1040x 2013 If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. 1040x 2013 A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040x 2013 The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). 1040x 2013 If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U. 1040x 2013 S. 1040x 2013 income tax. 1040x 2013 For purposes other than figuring your tax, you will be treated as a U. 1040x 2013 S. 1040x 2013 resident. 1040x 2013 For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . 1040x 2013 Information to be reported. 1040x 2013   If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. 1040x 2013 You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. 1040x 2013 You may also have to attach Form 8938 (discussed in chapter 7). 1040x 2013 See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. 1040x 2013 Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. 1040x 2013 This usually occurs in the year you arrive in or depart from the United States. 1040x 2013 Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. 1040x 2013 First Year of Residency If you are a U. 1040x 2013 S. 1040x 2013 resident for the calendar year, but you were not a U. 1040x 2013 S. 1040x 2013 resident at any time during the preceding calendar year, you are a U. 1040x 2013 S. 1040x 2013 resident only for the part of the calendar year that begins on the residency starting date. 1040x 2013 You are a nonresident alien for the part of the year before that date. 1040x 2013 Residency starting date under substantial presence test. 1040x 2013   If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year. 1040x 2013 However, you do not have to count up to 10 days of actual presence in the United States if on those days you establish that: You had a closer connection to a foreign country than to the United States, and Your tax home was in that foreign country. 1040x 2013 See Closer Connection to a Foreign Country , earlier. 1040x 2013   In determining whether you can exclude up to 10 days, the following rules apply. 1040x 2013 You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. 1040x 2013 You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. 1040x 2013 Although you can exclude up to 10 days of presence in determining your residency starting date, you must include those days when determining whether you meet the substantial presence test. 1040x 2013 Example. 1040x 2013 Ivan Ivanovich is a citizen of Russia. 1040x 2013 He came to the United States for the first time on January 6, 2013, to attend a business meeting and returned to Russia on January 10, 2013. 1040x 2013 His tax home remained in Russia. 1040x 2013 On March 1, 2013, he moved to the United States and resided here for the rest of the year. 1040x 2013 Ivan is able to establish a closer connection to Russia for the period January 6–10. 1040x 2013 Thus, his residency starting date is March 1. 1040x 2013 Statement required to exclude up to 10 days of presence. 1040x 2013   You must file a statement with the IRS if you are excluding up to 10 days of presence in the United States for purposes of your residency starting date. 1040x 2013 You must sign and date this statement and include a declaration that it is made under penalties of perjury. 1040x 2013 The statement must contain the following information (as applicable). 1040x 2013 Your name, address, U. 1040x 2013 S. 1040x 2013 taxpayer identification number (if any), and U. 1040x 2013 S. 1040x 2013 visa number (if any). 1040x 2013 Your passport number and the name of the country that issued your passport. 1040x 2013 The tax year for which the statement applies. 1040x 2013 The first day that you were present in the United States during the year. 1040x 2013 The dates of the days you are excluding in figuring your first day of residency. 1040x 2013 Sufficient facts to establish that you have maintained your tax home in and a closer connection to a foreign country during the period you are excluding. 1040x 2013   Attach the required statement to your income tax return. 1040x 2013 If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. 1040x 2013 The due date for filing is discussed in chapter 7. 1040x 2013   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. 1040x 2013 Therefore, your first day of residency will be the first day you are present in the United States. 1040x 2013 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. 1040x 2013 Residency starting date under green card test. 1040x 2013   If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident. 1040x 2013   If you meet both the substantial presence test and the green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident. 1040x 2013 Residency during the preceding year. 1040x 2013   If you were a U. 1040x 2013 S. 1040x 2013 resident during any part of the preceding calendar year and you are a U. 1040x 2013 S. 1040x 2013 resident for any part of the current year, you will be considered a U. 1040x 2013 S. 1040x 2013 resident at the beginning of the current year. 1040x 2013 This applies whether you are a resident under the substantial presence test or green card test. 1040x 2013 Example. 1040x 2013 Robert Bach is a citizen of Switzerland. 1040x 2013 He came to the United States as a U. 1040x 2013 S. 1040x 2013 resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. 1040x 2013 Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. 1040x 2013 In calendar year 2013, Robert's U. 1040x 2013 S. 1040x 2013 residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. 1040x 2013 First-Year Choice If you do not meet either the green card test or the substantial presence test for 2012 or 2013 and you did not choose to be treated as a resident for part of 2012, but you meet the substantial presence test for 2014, you can choose to be treated as a U. 1040x 2013 S. 1040x 2013 resident for part of 2013. 1040x 2013 To make this choice, you must: Be present in the United States for at least 31 days in a row in 2013, and Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2013. 1040x 2013 For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States. 1040x 2013 When counting the days of presence in (1) and (2) above, do not count the days you were in the United States under any of the exceptions discussed earlier under Days of Presence in the United States. 1040x 2013 If you make the first-year choice, your residency starting date for 2013 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. 1040x 2013 You are treated as a U. 1040x 2013 S. 1040x 2013 resident for the rest of the year. 1040x 2013 If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. 1040x 2013 If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period. 1040x 2013 Note. 1040x 2013 You do not have to be married to make this choice. 1040x 2013 Example 1. 1040x 2013 Juan DaSilva is a citizen of the Philippines. 1040x 2013 He came to the United States for the first time on November 1, 2013, and was here on 31 consecutive days (from November 1 through December 1, 2013). 1040x 2013 Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. 1040x 2013 He stayed in the United States for the rest of the year. 1040x 2013 During 2014, Juan was a resident of the United States under the substantial presence test. 1040x 2013 Juan can make the first-year choice for 2013 because he was in the United States in 2013 for a period of 31 days in a row (November 1 through December 1) and for at least 75% of the days following (and including) the first day of his 31-day period (46 total days of presence in the United States divided by 61 days in the period from November 1 through December 31 equals 75. 1040x 2013 4%). 1040x 2013 If Juan makes the first-year choice, his residency starting date will be November 1, 2013. 1040x 2013 Example 2. 1040x 2013 The facts are the same as in Example 1, except that Juan was also absent from the United States on December 24, 25, 29, 30, and 31. 1040x 2013 He can make the first-year choice for 2013 because up to 5 days of absence are considered days of presence for purposes of the 75% requirement. 1040x 2013 Statement required to make the first-year choice for 2013. 1040x 2013   You must attach a statement to Form 1040 to make the first-year choice for 2013. 1040x 2013 The statement must contain your name and address and specify the following. 1040x 2013 That you are making the first-year choice for 2013. 1040x 2013 That you were not a resident in 2012. 1040x 2013 That you are a resident under the substantial presence test in 2014. 1040x 2013 The number of days of presence in the United States during 2014. 1040x 2013 The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. 1040x 2013 The date or dates of absence from the United States during 2013 that you are treating as days of presence. 1040x 2013 You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. 1040x 2013 If you have not met the test for 2014 as of April 15, 2014, you can request an extension of time for filing your 2013 Form 1040 until a reasonable period after you have met that test. 1040x 2013 To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. 1040x 2013 S. 1040x 2013 Individual Income Tax Return. 1040x 2013 You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. 1040x 2013 You should pay with this extension the amount of tax you expect to owe for 2013 figured as if you were a nonresident alien the entire year. 1040x 2013 You can use Form 1040NR or Form 1040NR-EZ to figure the tax. 1040x 2013 Enter the tax on Form 4868. 1040x 2013 If you do not pay the tax due, you will be charged interest on any tax not paid by the regular due date of your return, and you may be charged a penalty on the late payment. 1040x 2013   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. 1040x 2013   If you do not follow the procedures discussed here for making the first-year choice, you will be treated as a nonresident alien for all of 2013. 1040x 2013 However, this does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures. 1040x 2013 Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. 1040x 2013 S. 1040x 2013 resident for the entire year if all of the following apply. 1040x 2013 You were a nonresident alien at the beginning of the year. 1040x 2013 You are a resident alien or U. 1040x 2013 S. 1040x 2013 citizen at the end of the year. 1040x 2013 You are married to a U. 1040x 2013 S. 1040x 2013 citizen or resident alien at the end of the year. 1040x 2013 Your spouse joins you in making the choice. 1040x 2013 This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. 1040x 2013 Note. 1040x 2013 If you are single at the end of the year, you cannot make this choice. 1040x 2013 If you make this choice, the following rules apply. 1040x 2013 You and your spouse are treated as U. 1040x 2013 S. 1040x 2013 residents for the entire year for income tax purposes. 1040x 2013 You and your spouse are taxed on worldwide income. 1040x 2013 You and your spouse must file a joint return for the year of the choice. 1040x 2013 Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. 1040x 2013 The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. 1040x 2013 Note. 1040x 2013 A similar choice is available if, at the end of the tax year, one spouse is a nonresident alien and the other spouse is a U. 1040x 2013 S. 1040x 2013 citizen or resident. 1040x 2013 See Nonresident Spouse Treated as a Resident , later. 1040x 2013 If you previously made that choice and it is still in effect, you do not need to make the choice explained here. 1040x 2013 Making the choice. 1040x 2013   You should attach a statement signed by both spouses to your joint return for the year of the choice. 1040x 2013 The statement must contain the following information. 1040x 2013 A declaration that you both qualify to make the choice and that you choose to be treated as U. 1040x 2013 S. 1040x 2013 residents for the entire tax year. 1040x 2013 The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. 1040x 2013 (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. 1040x 2013 )   You generally make this choice when you file your joint return. 1040x 2013 However, you also can make the choice by filing Form 1040X, Amended U. 1040x 2013 S. 1040x 2013 Individual Income Tax Return. 1040x 2013 Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. 1040x 2013 If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. 1040x 2013   You generally must file the amended joint return within 3 years from the date you filed your original U. 1040x 2013 S. 1040x 2013 income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040x 2013 Last Year of Residency If you were a U. 1040x 2013 S. 1040x 2013 resident in 2013 but are not a U. 1040x 2013 S. 1040x 2013 resident during any part of 2014, you cease to be a U. 1040x 2013 S. 1040x 2013 resident on your residency termination date. 1040x 2013 Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. 1040x 2013 Earlier residency termination date. 1040x 2013   You may qualify for a residency termination date that is earlier than December 31. 1040x 2013 This date is: The last day in 2013 that you are physically present in the United States, if you met the substantial presence test, The first day in 2013 that you are no longer a lawful permanent resident of the United States, if you met the green card test, or The later of (1) or (2), if you met both tests. 1040x 2013 You can use this date only if, for the remainder of 2013, your tax home was in a foreign country and you had a closer connection to that foreign country. 1040x 2013 See Closer Connection to a Foreign Country , earlier. 1040x 2013    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. 1040x 2013 See Expatriation Tax in chapter 4. 1040x 2013 Termination of residency. 1040x 2013   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. 1040x 2013 De minimis presence. 1040x 2013   If you are a U. 1040x 2013 S. 1040x 2013 resident because of the substantial presence test and you qualify to use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United States in determining your residency termination date. 1040x 2013 In determining whether you can exclude up to 10 days, the following rules apply. 1040x 2013 You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. 1040x 2013 You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. 1040x 2013 Although you can exclude up to 10 days of presence in determining your residency termination date, you must include those days when determining whether you meet the substantial presence test. 1040x 2013 Example. 1040x 2013 Lola Bovary is a citizen of Malta. 1040x 2013 She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. 1040x 2013 On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. 1040x 2013 She is able to establish a closer connection to Malta for the period December 12–16. 1040x 2013 Lola is not a U. 1040x 2013 S. 1040x 2013 resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. 1040x 2013 Lola is a U. 1040x 2013 S. 1040x 2013 resident under the substantial presence test for 2013 because she was present in the United States for 183 days (178 days for the period March 1 to August 25 plus 5 days in December). 1040x 2013 Lola's residency termination date is August 25, 2013. 1040x 2013 Residency during the next year. 1040x 2013   If you are a U. 1040x 2013 S. 1040x 2013 resident during any part of 2014 and you are a resident during any part of 2013, you will be treated as a resident through the end of 2013. 1040x 2013 This applies whether you have a closer connection to a foreign country than the United States during 2013, and whether you are a resident under the substantial presence test or green card test. 1040x 2013 Statement required to establish your residency termination date. 1040x 2013   You must file a statement with the IRS to establish your residency termination date. 1040x 2013 You must sign and date this statement and include a declaration that it is made under penalties of perjury. 1040x 2013 The statement must contain the following information (as applicable). 1040x 2013 Your name, address, U. 1040x 2013 S. 1040x 2013 taxpayer identification number (if any), and U. 1040x 2013 S. 1040x 2013 visa number (if any). 1040x 2013 Your passport number and the name of the country that issued your passport. 1040x 2013 The tax year for which the statement applies. 1040x 2013 The last day that you were present in the United States during the year. 1040x 2013 Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year. 1040x 2013 The date that your status as a lawful permanent resident was abandoned or rescinded. 1040x 2013 Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. 1040x 2013 If you can exclude days under the de minimis presence rule, discussed earlier, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in and that you have a closer connection to a foreign country during the period you are excluding. 1040x 2013   Attach the required statement to your income tax return. 1040x 2013 If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. 1040x 2013 The due date for filing is discussed in chapter 7. 1040x 2013   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. 1040x 2013 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. 1040x 2013 Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. 1040x 2013 S. 1040x 2013 citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. 1040x 2013 S. 1040x 2013 resident. 1040x 2013 This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. 1040x 2013 If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. 1040x 2013 Neither you nor your spouse can claim under any tax treaty not to be a U. 1040x 2013 S. 1040x 2013 resident. 1040x 2013 You are both taxed on worldwide income. 1040x 2013 You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. 1040x 2013 If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. 1040x 2013 Example. 1040x 2013 Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. 1040x 2013 In June, Bob became a resident alien and remained a resident for the rest of the year. 1040x 2013 Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. 1040x 2013 Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. 1040x 2013 How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. 1040x 2013 It should contain the following information. 1040x 2013 A declaration that one spouse was a nonresident alien and the other spouse a U. 1040x 2013 S. 1040x 2013 citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. 1040x 2013 S. 1040x 2013 residents for the entire tax year. 1040x 2013 The name, address, and identification number of each spouse. 1040x 2013 (If one spouse died, include the name and address of the person making the choice for the deceased spouse. 1040x 2013 ) Amended return. 1040x 2013   You generally make this choice when you file your joint return. 1040x 2013 However, you can also make the choice by filing a joint amended return on Form 1040X. 1040x 2013 Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. 1040x 2013 If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. 1040x 2013   You generally must file the amended joint return within 3 years from the date you filed your original U. 1040x 2013 S. 1040x 2013 income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040x 2013 Suspending the Choice The choice to be treated as a resident alien is suspended for any tax year (after the tax year you made the choice) if neither spouse is a U. 1040x 2013 S. 1040x 2013 citizen or resident alien at any time during the tax year. 1040x 2013 This means each spouse must file a separate return as a nonresident alien for that year if either meets the filing requirements for nonresident aliens discussed in chapter 7. 1040x 2013 Example. 1040x 2013 Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. 1040x 2013 They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. 1040x 2013 On January 10, 2012, Dick became a nonresident alien. 1040x 2013 Judy had remained a nonresident alien throughout the period. 1040x 2013 Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. 1040x 2013 However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. 1040x 2013 If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. 1040x 2013 If Dick becomes a resident alien again in 2014, their choice is no longer suspended. 1040x 2013 Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier under Suspending the Choice ) or ended in one of the following ways. 1040x 2013 If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. 1040x 2013 Revocation. 1040x 2013 Either spouse can revoke the choice for any tax year, provided he or she makes the revocation by the due date for filing the tax return for that tax year. 1040x 2013 The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. 1040x 2013 The statement must include the name, address, and identification number of each spouse. 1040x 2013 (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. 1040x 2013 ) The statement also must include a list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. 1040x 2013 File the statement as follows. 1040x 2013 If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. 1040x 2013 If the spouse revoking the choice does not have to file a return, but does file a return (for example, to obtain a refund), attach the statement to the return. 1040x 2013 If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where you filed the last joint return. 1040x 2013 Death. 1040x 2013 The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. 1040x 2013 However, if the surviving spouse is a U. 1040x 2013 S. 1040x 2013 citizen or resident and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. 1040x 2013 If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. 1040x 2013 Legal separation. 1040x 2013 A legal separation under a decree of divorce or separate maintenance ends the choice as of the beginning of the tax year in which the legal separation occurs. 1040x 2013 Inadequate records. 1040x 2013 The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. 1040x 2013 Aliens From American Samoa or Puerto Rico If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. 1040x 2013 For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. 1040x 2013 If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien. 1040x 2013 Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. 1040x 2013 Prev  Up  Next   Home   More Online Publications