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1040x how to 3. 1040x how to   Filing Information for Individuals in Certain U. 1040x how to S. 1040x how to Possessions Table of Contents American SamoaWhere To Get Forms and Information Which Returns To File Special Rules for American Samoa Double Taxation The Commonwealth of Puerto RicoWhere To Get Forms and Information Which Returns To File Special Rules for Puerto Rico Double Taxation The Commonwealth of the Northern Mariana IslandsWhere To Get Forms and Information Which Return To File Special Rules for the CNMI Double Taxation GuamWhere To Get Forms and Information Which Return To File Special Rules for Guam Double Taxation The U. 1040x how to S. 1040x how to Virgin IslandsWhere To Get Forms and Information Which Return To File Special Rules for the USVI Double Taxation If you have income from American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, you may have to file a tax return with the tax department of that possession. 1040x how to Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. 1040x how to S. 1040x how to Internal Revenue Service. 1040x how to This chapter covers the general rules for filing returns in the five possessions. 1040x how to You must first determine if you are a bona fide resident of the relevant possession. 1040x how to See chapter 1 for a discussion of the requirements you must meet. 1040x how to You should ask for forms and advice about the filing of possession tax returns from that possession's tax department, not the Internal Revenue Service. 1040x how to Contact information is listed in this chapter under the heading for each possession. 1040x how to American Samoa American Samoa has its own separate and independent tax system. 1040x how to Although its tax laws are modeled on the U. 1040x how to S. 1040x how to Internal Revenue Code, there are certain differences. 1040x how to Where To Get Forms and Information Requests for advice about matters connected with Samoan taxation should be sent to: American Samoa Government Tax Office  Executive Office Building First Floor Pago Pago, AS 96799 The phone number is (684) 633-4181. 1040x how to The fax number is (684) 633-1513. 1040x how to You can get forms and publications at www. 1040x how to americansamoa. 1040x how to gov. 1040x how to The addresses and phone numbers listed above are subject to change. 1040x how to Which Returns To File Your residency status and your source of income with regard to American Samoa determine whether you file your return and pay your tax to American Samoa, to the United States, or to both. 1040x how to In addition to the information below that is categorized by residency status, the Special Rules for American Samoa section (later) contains important information for determining the correct forms to file. 1040x how to Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. 1040x how to S. 1040x how to tax on their American Samoa source income. 1040x how to U. 1040x how to S. 1040x how to citizen or resident alien. 1040x how to   If you are a U. 1040x how to S. 1040x how to citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. 1040x how to An American Samoa tax return reporting your gross income from worldwide sources. 1040x how to If you report non-American Samoa source income on your American Samoa tax return, you can claim a credit against your American Samoa tax liability for income taxes paid on that income to the United States, a foreign country, or another possession. 1040x how to A U. 1040x how to S. 1040x how to tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. 1040x how to However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. 1040x how to S. 1040x how to Government employees under Special Rules for American Samoa, later). 1040x how to To exclude American Samoa source income, attach a completed Form 4563 to your U. 1040x how to S. 1040x how to tax return (see Form 4563 for more information). 1040x how to If you are excluding American Samoa source income on your U. 1040x how to S. 1040x how to tax return, you will not be allowed any deductions from gross income or credits against tax that are directly or indirectly allocable to the exempt income. 1040x how to For more information, see Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to Nonresident alien. 1040x how to   If you are a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. 1040x how to An American Samoa tax return reporting worldwide income. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040, U. 1040x how to S. 1040x how to Individual Income Tax Return) reporting income from worldwide sources, but excluding American Samoa source income other than amounts for services performed as an employee of the United States or any of its agencies. 1040x how to For more information, see U. 1040x how to S. 1040x how to Government employees under Special Rules for American Samoa, later. 1040x how to To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. 1040x how to S. 1040x how to tax return (see Form 4563 , below, for more information). 1040x how to For all other tax purposes, however, you will be treated as a nonresident alien individual. 1040x how to For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. 1040x how to There are also limitations on what deductions and credits are allowed. 1040x how to See Publication 519 for more information. 1040x how to Form 4563. 1040x how to   If you must file a U. 1040x how to S. 1040x how to income tax return and you qualify to exclude any of your income from American Samoa, claim the exclusion by completing Form 4563 and attaching it to your Form 1040. 1040x how to Form 4563 cannot be filed by itself. 1040x how to There is an example of a filled-in Form 4563 in chapter 5. 1040x how to   If you are a bona fide resident of American Samoa during the entire tax year and you are not including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 4563) to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 4563) to: Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. 1040x how to Self-employment tax. 1040x how to   If you are not required to file a U. 1040x how to S. 1040x how to tax return but have income that is effectively connected with a trade or business in American Samoa, you must file Form 1040-SS with the United States. 1040x how to On this form you will report your self-employment income to the United States and, if necessary, pay self-employment tax on that income. 1040x how to Additional Medicare Tax. 1040x how to   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040x how to Also, you may need to report Additional Medicare Tax withheld by your employer. 1040x how to For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to Net Investment Income Tax. 1040x how to   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. 1040x how to 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040x how to The NIIT will apply to a bona fide resident of American Samoa if a taxpayer has modified adjusted gross income from sources outside of American Samoa that exceeds a specified threshold amount, e. 1040x how to g. 1040x how to , $200,000 for single filers. 1040x how to The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040x how to See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. 1040x how to Estimated tax payments. 1040x how to   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES, Estimated Tax for Individuals. 1040x how to   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. 1040x how to O. 1040x how to Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040x how to irs. 1040x how to gov/e-pay. 1040x how to   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. 1040x how to Not a Bona Fide Resident of American Samoa An individual who is not a bona fide resident of American Samoa for the tax year generally files both U. 1040x how to S. 1040x how to and American Samoa tax returns, and claims a foreign tax credit on the U. 1040x how to S. 1040x how to return for taxes paid to American Samoa. 1040x how to U. 1040x how to S. 1040x how to citizen or resident alien. 1040x how to   If you are a U. 1040x how to S. 1040x how to citizen or resident alien but not a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. 1040x how to An American Samoa tax return reporting only your income from sources within American Samoa. 1040x how to Wages for services performed in American Samoa, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from sources within American Samoa. 1040x how to A U. 1040x how to S. 1040x how to tax return reporting your income from worldwide sources. 1040x how to You can take a credit against your U. 1040x how to S. 1040x how to tax liability if you paid income taxes to American Samoa (or other possession or foreign country) and reported income from those sources on your U. 1040x how to S. 1040x how to tax return. 1040x how to De minimis exception to determining source of income. 1040x how to   In certain situations you will not have income from a possession. 1040x how to See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040x how to Nonresident alien. 1040x how to   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of American Samoa for the entire tax year, you generally must file the following returns. 1040x how to An American Samoa tax return reporting only your income from sources within American Samoa. 1040x how to In this situation, wages for services performed in American Samoa, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from sources within American Samoa. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040NR, U. 1040x how to S. 1040x how to Nonresident Alien Income Tax Return) reporting U. 1040x how to S. 1040x how to source income according to the rules for a nonresident alien. 1040x how to See the Instructions for Form 1040NR. 1040x how to   If you are not a bona fide resident of American Samoa during the entire tax year, and you are not including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to: Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. 1040x how to Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. 1040x how to U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. 1040x how to Civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces ), your tax residence is American Samoa, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. 1040x how to However, if your tax residence is one of the 50 states or the District of Columbia and your only income from American Samoa is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040x how to S. 1040x how to tax return (Form 1040) and a state and/or local tax return, if required. 1040x how to If you have income from American Samoa other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), contact the local tax administration for guidance. 1040x how to U. 1040x how to S. 1040x how to Government employees. 1040x how to   If you are employed in American Samoa by the U. 1040x how to S. 1040x how to Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. 1040x how to Whether you are subject to tax by American Samoa on your non-American Samoa source income depends on your status in American Samoa as a bona fide resident. 1040x how to   Wages and salaries paid to employees of the U. 1040x how to S. 1040x how to Government and its agencies are also subject to U. 1040x how to S. 1040x how to federal income tax. 1040x how to These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. 1040x how to   For tax years ending after April 9, 2008, wages and salaries paid to bona fide residents by the Government of American Samoa can be excluded on the U. 1040x how to S. 1040x how to tax return. 1040x how to   If you report government wages on both your U. 1040x how to S. 1040x how to and American Samoa tax returns, you can take a credit on your U. 1040x how to S. 1040x how to tax return for income taxes paid or accrued to American Samoa. 1040x how to Figure the credit on Form 1116, and attach that form to your U. 1040x how to S. 1040x how to tax return, Form 1040. 1040x how to Show your wages paid for services performed in American Samoa on Form 1116, line 1a, enter “American Samoa” on line g, and check box b above Part I. 1040x how to Moving expense deduction. 1040x how to   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. 1040x how to Likewise, the expenses of a move back to the United States are generally attributable to U. 1040x how to S. 1040x how to earned income. 1040x how to   If your move was to American Samoa, report your deduction for moving expenses as follows. 1040x how to If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your American Samoa tax return. 1040x how to If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. 1040x how to S. 1040x how to tax returns. 1040x how to Also, for purposes of a tax credit against your U. 1040x how to S. 1040x how to tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. 1040x how to   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. 1040x how to Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. 1040x how to See Double Taxation in chapter 4. 1040x how to The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. 1040x how to Although it is modeled after the U. 1040x how to S. 1040x how to system, there are differences in law and tax rates. 1040x how to Where To Get Forms and Information Requests for information about the filing of Puerto Rico tax returns should be addressed to: Departamento de Hacienda Negociado de Asistencia Contributiva  P. 1040x how to O. 1040x how to Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. 1040x how to    To obtain Puerto Rico tax forms, contact the Forms and Publications Division Office at the above address or call (787) 722-0216, option #7. 1040x how to You can access the Hacienda website at www. 1040x how to hacienda. 1040x how to gobierno. 1040x how to pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. 1040x how to gobierno. 1040x how to pr. 1040x how to The addresses and phone numbers listed above are subject to change. 1040x how to Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. 1040x how to The income reported on each return depends on your residency status in Puerto Rico. 1040x how to To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. 1040x how to Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. 1040x how to U. 1040x how to S. 1040x how to citizen or resident alien. 1040x how to   If you are a U. 1040x how to S. 1040x how to citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. 1040x how to A Puerto Rico tax return reporting income from worldwide sources. 1040x how to If you report U. 1040x how to S. 1040x how to source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. 1040x how to A U. 1040x how to S. 1040x how to tax return reporting income from worldwide sources, but excluding Puerto Rico source income. 1040x how to However, see U. 1040x how to S. 1040x how to Government employees under Special Rules for Puerto Rico, later, for an exception. 1040x how to If you are excluding Puerto Rico income on your U. 1040x how to S. 1040x how to tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. 1040x how to For more information, see Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to If all of your income is from Puerto Rico sources, you are not required to file a U. 1040x how to S. 1040x how to tax return. 1040x how to However, if you have self-employment income, see Self-employment tax , later. 1040x how to U. 1040x how to S. 1040x how to citizen only. 1040x how to   If you are a U. 1040x how to S. 1040x how to citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. 1040x how to In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U. 1040x how to S. 1040x how to Government or its agencies) that you earned before the date you changed your residence. 1040x how to For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. 1040x how to Nonresident alien. 1040x how to   If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. 1040x how to A Puerto Rico tax return reporting income from worldwide sources. 1040x how to If you report U. 1040x how to S. 1040x how to source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rico source income (other than amounts for services performed as an employee of the United States or any of its agencies). 1040x how to For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. 1040x how to For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. 1040x how to There are also limitations on what deductions and credits are allowed. 1040x how to See Publication 519 for more information. 1040x how to Self-employment tax. 1040x how to   If you have no U. 1040x how to S. 1040x how to filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040x how to Additional Medicare Tax. 1040x how to   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040x how to Also, you may need to report Additional Medicare Tax withheld by your employer. 1040x how to For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to Net Investment Income Tax. 1040x how to   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. 1040x how to 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040x how to The NIIT will apply to a bona fide resident of Puerto Rico if a taxpayer has modified adjusted gross income from sources outside of Puerto Rico that exceeds a specified threshold amount, e. 1040x how to g. 1040x how to , $200,000 for single filers. 1040x how to The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040x how to See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. 1040x how to Estimated tax payments. 1040x how to   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES (or Form 1040-ES(PR)). 1040x how to   To pay by check or money order, send your payment with the Form 1040-ES (or Form 1040-ES(PR)) payment voucher to: Internal Revenue Service P. 1040x how to O. 1040x how to Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040x how to irs. 1040x how to gov/e-pay. 1040x how to   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. 1040x how to Not a Bona Fide Resident of Puerto Rico An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States. 1040x how to U. 1040x how to S. 1040x how to citizen or resident alien. 1040x how to   If you are a U. 1040x how to S. 1040x how to citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. 1040x how to A Puerto Rico tax return reporting only your income from Puerto Rico sources. 1040x how to Wages for services performed in Puerto Rico, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from Puerto Rico sources. 1040x how to A U. 1040x how to S. 1040x how to tax return reporting income from worldwide sources. 1040x how to Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is not exempt from U. 1040x how to S. 1040x how to taxes (see chapter 4 for more information). 1040x how to Nonresident alien. 1040x how to   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns. 1040x how to A Puerto Rico tax return reporting only your income from Puerto Rico sources. 1040x how to Wages for services performed in Puerto Rico, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from Puerto Rico sources. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040NR) according to the rules for a nonresident alien. 1040x how to See the Instructions for Form 1040NR. 1040x how to De minimis exception to determining source of income. 1040x how to   In certain situations you will not have income from a possession. 1040x how to See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040x how to Use the addresses listed below to file your U. 1040x how to S. 1040x how to and Puerto Rico income tax returns. 1040x how to If you are not including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to: Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA If you request a refund on your Puerto Rico return, send your Puerto Rico tax return and all attachments to: Departamento de Hacienda P. 1040x how to O. 1040x how to Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. 1040x how to O. 1040x how to Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. 1040x how to S. 1040x how to and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. 1040x how to U. 1040x how to S. 1040x how to Government employees. 1040x how to   Wages and cost-of-living allowances paid by the U. 1040x how to S. 1040x how to Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. 1040x how to However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. 1040x how to S. 1040x how to tax. 1040x how to In order to claim this exclusion, you must: Include with your Puerto Rico tax return evidence to show the amount received during the year, and Be in full compliance with your Puerto Rico tax responsibilities. 1040x how to   These wages are also subject to U. 1040x how to S. 1040x how to tax, but the cost-of-living allowances are excludable. 1040x how to A foreign tax credit is available in order to avoid double taxation. 1040x how to U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. 1040x how to Civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces ), your tax residence is Puerto Rico, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. 1040x how to However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Puerto Rico is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040x how to S. 1040x how to tax return (Form 1040) and a state and/or local tax return, if required. 1040x how to If you have income from Puerto Rico other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1 ), contact the Hacienda for guidance. 1040x how to Income from sources outside Puerto Rico and the United States. 1040x how to   If you are a U. 1040x how to S. 1040x how to citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. 1040x how to In addition to your Puerto Rico and U. 1040x how to S. 1040x how to tax returns, you may also have to file a return with the country or possession from which your outside income was derived. 1040x how to To avoid double taxation, a foreign tax credit is generally available for either the U. 1040x how to S. 1040x how to or Puerto Rico return. 1040x how to Example. 1040x how to Thomas Red is a bona fide resident of Puerto Rico and a U. 1040x how to S. 1040x how to citizen. 1040x how to He traveled to the Dominican Republic and worked in the construction industry for 1 month. 1040x how to His wages were $20,000. 1040x how to Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. 1040x how to He may also have to file a tax return with the Dominican Republic. 1040x how to Moving expense deduction. 1040x how to   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. 1040x how to Likewise, the expenses of a move back to the United States are generally attributable to U. 1040x how to S. 1040x how to earned income. 1040x how to   If your move was to Puerto Rico, report your deduction for moving expenses as follows. 1040x how to If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rico tax return. 1040x how to If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. 1040x how to S. 1040x how to tax returns. 1040x how to Also, for purposes of a tax credit against your U. 1040x how to S. 1040x how to tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. 1040x how to   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040x how to Additional child tax credit. 1040x how to   If you are not required to file a U. 1040x how to S. 1040x how to income tax return, this credit is available only if you meet all three of the following conditions. 1040x how to You were a bona fide resident of Puerto Rico during the entire tax year. 1040x how to Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. 1040x how to You had three or more qualifying children. 1040x how to (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. 1040x how to ) If your income exceeds certain levels, you may be disqualified from receiving this credit. 1040x how to Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. 1040x how to Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. 1040x how to Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. 1040x how to See Double Taxation in chapter 4. 1040x how to The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its own tax system based partly on the same tax laws and tax rates that apply to the United States and partly on local taxes imposed by the CNMI government. 1040x how to Where To Get Forms and Information Requests for advice about CNMI residency and tax matters should be addressed to: Commonwealth of the Northern Mariana Islands  Division of Revenue and Taxation P. 1040x how to O. 1040x how to Box 5234 CHRB Dandan Commercial Center First Floor Rm #8  Saipan, MP 96950 You can order forms and publications by calling (670) 664-1000. 1040x how to You can order forms and publications through the fax at (670) 664-1015. 1040x how to You can get forms and publications at www. 1040x how to cnmidof. 1040x how to net. 1040x how to The addresses and phone numbers listed above are subject to change. 1040x how to Which Return To File In general, all individuals with income from the CNMI will file only one return, either to the CNMI or to the United States. 1040x how to Your residency status with regard to the CNMI determines which return you will file. 1040x how to Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. 1040x how to Bona Fide Resident of the CNMI If you are a U. 1040x how to S. 1040x how to citizen, resident alien, or nonresident alien and a bona fide resident of the CNMI during the entire tax year, file your income tax return with the CNMI. 1040x how to Include income from worldwide sources on your CNMI return. 1040x how to In determining your total tax payments, include all income tax withheld by either the CNMI or the United States, any credit for an overpayment of income tax to either the CNMI or the United States, and any payments of estimated tax to either the CNMI or the United States. 1040x how to Pay any balance of tax due with your tax return. 1040x how to Generally, if you properly file your return with, and fully pay your income tax to, the CNMI, then you are not liable for filing an income tax return with, or for paying tax to, the United States for the tax year. 1040x how to However, if you were self-employed in 2013, see Self-employment tax , later. 1040x how to Example. 1040x how to David Gold was a bona fide resident of the CNMI for 2013. 1040x how to He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. 1040x how to S. 1040x how to corporations that carry on business mainly in the United States. 1040x how to He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. 1040x how to He reports his total income of $34,000 on the CNMI return. 1040x how to   If you are a bona fide resident of the CNMI for the entire tax year, send your return and all attachments to the Division of Revenue and Taxation at the address given earlier. 1040x how to U. 1040x how to S. 1040x how to Citizen or Resident Alien (Other Than a Bona Fide Resident of the CNMI) If you have income from sources within the CNMI and are a U. 1040x how to S. 1040x how to citizen or resident alien, but you are not a bona fide resident of the CNMI during the entire tax year, file your income tax return with the United States. 1040x how to Include income from worldwide sources on your U. 1040x how to S. 1040x how to return. 1040x how to In determining your total tax payments, include all income tax withheld by either the United States or the CNMI, any credit for an overpayment of income tax to either the United States or the CNMI, and any payments of estimated tax to either the United States or the CNMI. 1040x how to Pay any balance of tax due with your tax return. 1040x how to Note. 1040x how to You may also need to complete Form 5074. 1040x how to You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. 1040x how to Form 5074. 1040x how to   If you file a U. 1040x how to S. 1040x how to income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within the CNMI. 1040x how to   The United States and the CNMI use this form to divide your income taxes. 1040x how to   There is an example of a filled-in Form 5074 in chapter 5. 1040x how to De minimis exception to determining source of income. 1040x how to   In certain situations you will not have income from a possession. 1040x how to See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040x how to Citizen or resident alien of the United States but not a bona fide resident of the CNMI. 1040x how to   If you are a citizen or resident alien of the United States but not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to: Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the CNMI for the entire tax year, you generally must file the following returns. 1040x how to A CNMI tax return reporting only your income from sources within the CNMI. 1040x how to In this situation, wages for services performed in the CNMI, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from sources within the CNMI. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040NR) reporting U. 1040x how to S. 1040x how to source income according to the rules for a nonresident alien. 1040x how to See the instructions for Form 1040NR. 1040x how to If you are not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to:  Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA Send your CNMI tax return and all attachments to:  Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040x how to O. 1040x how to Box 5234 CHRB Saipan, MP 96950 Citizen of the CNMI If you are a citizen of the CNMI (meaning that you were born or naturalized in the CNMI) but not otherwise a U. 1040x how to S. 1040x how to citizen or a U. 1040x how to S. 1040x how to resident alien during the tax year, file your income tax return with the CNMI. 1040x how to Include income from worldwide sources on your CNMI return. 1040x how to Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. 1040x how to Pay any balance of tax due with your tax return. 1040x how to Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040x how to O. 1040x how to Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. 1040x how to Joint return. 1040x how to   If you file a joint return, file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040x how to If the spouse with the greater AGI is a bona fide resident of the CNMI during the entire tax year, file the joint return with the CNMI. 1040x how to If the spouse with the greater AGI is a U. 1040x how to S. 1040x how to citizen or resident alien but not a bona fide resident of the CNMI during the entire tax year, file your joint return with the United States. 1040x how to For this purpose, income is determined without regard to community property laws. 1040x how to Example. 1040x how to Marsha Blue, a U. 1040x how to S. 1040x how to citizen, was a resident of the United States, and her spouse, a citizen of the CNMI, was a bona fide resident of the CNMI during the entire tax year. 1040x how to Marsha earned $65,000 as a computer programmer in the United States. 1040x how to Her spouse earned $20,000 as an artist in the CNMI. 1040x how to Marsha and her spouse will file a joint return. 1040x how to Because Marsha has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. 1040x how to U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If you are a member of the U. 1040x how to S. 1040x how to Armed Forces who qualified as a bona fide resident of the CNMI in a prior tax year, your absence from the CNMI solely in compliance with military orders will not change your bona fide residency. 1040x how to If you did not qualify as a bona fide resident of the CNMI in a prior tax year, your presence in the CNMI solely in compliance with military orders will not qualify you as a bona fide resident of the CNMI. 1040x how to Civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces ), your tax residence is the CNMI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040x how to However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the CNMI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040x how to S. 1040x how to tax return (Form 1040) and a state and/or local tax return, if required. 1040x how to If you have income from the CNMI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. 1040x how to S. 1040x how to tax return. 1040x how to Moving expense deduction. 1040x how to   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. 1040x how to Likewise, the expenses of a move back to the United States are generally attributable to U. 1040x how to S. 1040x how to earned income. 1040x how to   If your move was to the CNMI, report your deduction for moving expenses as follows. 1040x how to If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. 1040x how to If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. 1040x how to   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040x how to Foreign tax credit. 1040x how to   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. 1040x how to S. 1040x how to income tax return for tax paid to the CNMI. 1040x how to Self-employment tax. 1040x how to   If you have no U. 1040x how to S. 1040x how to filing requirement, but have income that is effectively connected with a trade or business in the CNMI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040x how to Additional Medicare Tax. 1040x how to   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040x how to Also, you may need to report Additional Medicare Tax withheld by your employer. 1040x how to For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to Estimated tax payments. 1040x how to   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax to the IRS, get Form 1040-ES. 1040x how to Payment of estimated tax. 1040x how to   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. 1040x how to Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. 1040x how to However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. 1040x how to   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). 1040x how to For this purpose, income is determined without regard to community property laws. 1040x how to Early payment. 1040x how to   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. 1040x how to If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. 1040x how to   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. 1040x how to O. 1040x how to Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040x how to irs. 1040x how to gov/e-pay. 1040x how to   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. 1040x how to Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. 1040x how to See Double Taxation in chapter 4. 1040x how to Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. 1040x how to Where To Get Forms and Information Requests for advice about Guam residency and tax matters should be addressed to: Department of Revenue and Taxation Government of Guam P. 1040x how to O. 1040x how to Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. 1040x how to You can order forms and publications through the fax at (671) 633-2643. 1040x how to You can get forms and publications at www. 1040x how to guamtax. 1040x how to com. 1040x how to The addresses and phone numbers listed above are subject to change. 1040x how to Which Return To File Bona fide residents of Guam are subject to special U. 1040x how to S. 1040x how to tax rules. 1040x how to In general, all individuals with income from Guam will file only one return—either to Guam or the United States. 1040x how to Bona Fide Resident of Guam If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. 1040x how to This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. 1040x how to Include income from worldwide sources on your Guam return. 1040x how to In determining your total tax payments, include all income tax withheld by either Guam or the United States, any credit for an overpayment of income tax to either Guam or the United States, and any payments of estimated tax to either Guam or the United States. 1040x how to Pay any balance of tax due with your tax return. 1040x how to Generally, if you properly file your return with, and fully pay your income tax to, Guam, then you are not liable for filing an income tax return with, or for paying tax to, the United States. 1040x how to However, if you were self-employed in 2013, see Self-employment tax , later. 1040x how to Example. 1040x how to Gary Barker was a bona fide resident of Guam for 2013. 1040x how to He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. 1040x how to S. 1040x how to corporations that carry on business mainly in the United States. 1040x how to He must file a 2013 income tax return with the Government of Guam. 1040x how to He reports his total income of $27,000 on the Guam return. 1040x how to If you are a bona fide resident of Guam for the entire tax year, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. 1040x how to O. 1040x how to Box 23607 GMF, GU 96921 U. 1040x how to S. 1040x how to Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) If you have income from sources within Guam and are a U. 1040x how to S. 1040x how to citizen or resident alien, but you are not a bona fide resident of Guam during the entire tax year, file your income tax return with the United States. 1040x how to Include income from worldwide sources on your U. 1040x how to S. 1040x how to return. 1040x how to In determining your total tax payments, include all income tax withheld by either the United States or Guam, any credit for an overpayment of income tax to either the United States or Guam, and any payments of estimated tax to either the United States or Guam. 1040x how to Pay any balance of tax due with your tax return. 1040x how to You may also need to complete Form 5074. 1040x how to You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. 1040x how to Form 5074. 1040x how to   If you file a U. 1040x how to S. 1040x how to income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within Guam. 1040x how to   The United States and Guam use this form to divide your income taxes. 1040x how to   See the Illustrated Example of Form 5074 in chapter 5. 1040x how to De minimis exception to determining source of income. 1040x how to   In certain situations you will not have income from a possession. 1040x how to See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040x how to   If you are a citizen or resident alien of the United States but not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 5074) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of Guam) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Guam for the entire tax year, you generally must file the following returns. 1040x how to A Guam tax return reporting only your income from sources within Guam. 1040x how to In this situation, wages for services performed in Guam, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from sources within Guam. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040NR) reporting U. 1040x how to S. 1040x how to source income according to the rules for a nonresident alien. 1040x how to See the instructions for Form 1040NR. 1040x how to If you are not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments to:  Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. 1040x how to O. 1040x how to Box 23607 GMF, GU 96921 Citizen of Guam If you are a citizen of Guam (meaning that you were born or naturalized in Guam) but not otherwise a U. 1040x how to S. 1040x how to citizen or a U. 1040x how to S. 1040x how to resident alien during the tax year, file your income tax return with Guam. 1040x how to Include income from worldwide sources on your Guam return. 1040x how to Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. 1040x how to Pay any balance of tax due with your tax return. 1040x how to If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. 1040x how to O. 1040x how to Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. 1040x how to Joint return. 1040x how to   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040x how to If the spouse with the greater AGI is a bona fide resident of Guam during the entire tax year, file the joint return with Guam. 1040x how to If the spouse with the greater AGI is a U. 1040x how to S. 1040x how to citizen or resident alien but not a bona fide resident of Guam during the entire tax year, file the joint return with the United States. 1040x how to For this purpose, income is determined without regard to community property laws. 1040x how to Example. 1040x how to Bill Whiting, a U. 1040x how to S. 1040x how to citizen, was a resident of the United States, and his spouse, a citizen of Guam, was a bona fide resident of Guam during the entire tax year. 1040x how to Bill earned $45,000 as an engineer in the United States. 1040x how to His spouse earned $15,000 as a teacher in Guam. 1040x how to Bill and his spouse will file a joint return. 1040x how to Because Bill has the greater AGI, he and his spouse must file their return with the United States and report the entire $60,000 on that return. 1040x how to U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If you are a member of the U. 1040x how to S. 1040x how to Armed Forces who qualified as a bona fide resident of Guam in a prior tax year, your absence from Guam solely in compliance with military orders will not change your bona fide residency. 1040x how to If you did not qualify as a bona fide resident of Guam in a prior tax year, your presence in Guam solely in compliance with military orders will not qualify you as a bona fide resident of Guam. 1040x how to Civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040x how to However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Guam is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040x how to S. 1040x how to tax return (Form 1040) and a state and/or local tax return, if required. 1040x how to If you have income from Guam other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. 1040x how to S. 1040x how to tax return. 1040x how to Moving expense deduction. 1040x how to   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. 1040x how to Likewise, the expenses of a move back to the United States are generally attributable to U. 1040x how to S. 1040x how to earned income. 1040x how to   If your move was to Guam, report your deduction for moving expenses as follows. 1040x how to If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. 1040x how to If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. 1040x how to   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040x how to Foreign tax credit. 1040x how to   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. 1040x how to S. 1040x how to income tax return for tax paid to Guam. 1040x how to Self-employment tax. 1040x how to   If you have no U. 1040x how to S. 1040x how to filing requirement, but have income that is effectively connected with a trade or business in Guam, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040x how to Additional Medicare Tax. 1040x how to   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040x how to Also, you may need to report Additional Medicare Tax withheld by your employer. 1040x how to For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to Estimated tax payments. 1040x how to   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. 1040x how to Payment of estimated tax. 1040x how to   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. 1040x how to Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. 1040x how to However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. 1040x how to   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). 1040x how to For this purpose, income is determined without regard to community property laws. 1040x how to Early payment. 1040x how to   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. 1040x how to If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. 1040x how to   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Department of Revenue and Taxation Government of Guam P. 1040x how to O. 1040x how to Box 23607 GMF, GU 96921   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040x how to irs. 1040x how to gov/e-pay. 1040x how to   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. 1040x how to Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and Guam. 1040x how to See Double Taxation in chapter 4. 1040x how to The U. 1040x how to S. 1040x how to Virgin Islands The U. 1040x how to S. 1040x how to Virgin Islands has its own tax system based on the same tax laws and tax rates that apply in the United States. 1040x how to An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI. 1040x how to Where To Get Forms and Information For information about filing your U. 1040x how to S. 1040x how to Virgin Islands tax return or about Form 1040INFO, in St. 1040x how to Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. 1040x how to Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. 1040x how to You can order forms and publications through the fax at (340) 774-2672. 1040x how to For information about filing your U. 1040x how to S. 1040x how to Virgin Islands tax return or about Form 1040INFO, in St. 1040x how to Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. 1040x how to I. 1040x how to 00820–4421 You can order forms and publications by calling (340) 773-1040. 1040x how to You can order forms and publications through the fax at (340) 773-1006. 1040x how to You can access the USVI website at www. 1040x how to viirb. 1040x how to com. 1040x how to The addresses and phone numbers listed above are subject to change. 1040x how to Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. 1040x how to U. 1040x how to S. 1040x how to citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of the tax to each jurisdiction. 1040x how to Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. 1040x how to S. 1040x how to citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. 1040x how to Include your worldwide income on your USVI return. 1040x how to In determining your total tax payments, take into account all income tax withheld by either the USVI or the United States, any credit for an overpayment of income tax to either the USVI or the United States, and any payments of estimated tax to either the USVI or the United States. 1040x how to Pay any balance of tax due with your tax return. 1040x how to Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. 1040x how to S. 1040x how to income tax. 1040x how to You generally do not have to file with the United States for any tax year in which you are a bona fide resident of the USVI during the entire tax year, provided you report and pay tax on your income from all sources to the USVI and identify the source(s) of the income on the return. 1040x how to However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. 1040x how to For more information, see Self-employment tax under Special Rules for the USVI, later. 1040x how to Form 1040INFO. 1040x how to   If you are a bona fide resident of the USVI and have non-USVI source income, you must also file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands Bureau of Internal Revenue. 1040x how to Attach Form 1040INFO to your USVI tax return before filing. 1040x how to You can get Form 1040INFO by contacting the address or website given earlier. 1040x how to   If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040x how to Thomas, VI 00802 U. 1040x how to S. 1040x how to Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. 1040x how to S. 1040x how to citizen or resident alien but not a bona fide resident of the USVI during the entire tax year, you must file your original Form 1040 with the United States and an identical copy of that return with the USVI if you have: Income from sources in the USVI, or Income effectively connected with the conduct of a trade or business in the USVI. 1040x how to File your original Form 1040 with the United States and file a signed copy of the U. 1040x how to S. 1040x how to return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. 1040x how to Use Form 8689 to figure the amount of tax you must pay to the USVI. 1040x how to Form 8689. 1040x how to   Complete this form and attach it to both the return you file with the United States and the copy you file with the USVI. 1040x how to Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. 1040x how to S. 1040x how to return (after certain adjustments) × USVI AGI Worldwide AGI     Pay any tax due to the USVI when you file your return with the Virgin Islands Bureau of Internal Revenue. 1040x how to To receive credit on your U. 1040x how to S. 1040x how to return for taxes paid to the USVI, include the amounts from Form 8689, lines 40 and 45, in the total on Form 1040, line 72. 1040x how to On the dotted line next to line 72, enter “Form 8689” and show the amounts. 1040x how to   See the illustrated example in chapter 5. 1040x how to De minimis exception to determining source of income. 1040x how to   In certain situations you will not have income from a possession. 1040x how to See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040x how to   If you are not a bona fide resident of the USVI during the entire tax year, but you have USVI source income, and you are not including a check or a money order, file Form 1040 and all attachments (including Form 8689) with the:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. 1040x how to S. 1040x how to Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040x how to Thomas, VI 00802 Nonresident Alien (Other Than a Bona Fide Resident of the USVI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the USVI for the entire tax year, you generally must file the following returns. 1040x how to A USVI tax return reporting only your income from sources within the USVI. 1040x how to In this situation, wages for services performed in the USVI, whether for a private employer, the U. 1040x how to S. 1040x how to Government, or otherwise, is income from sources within the USVI. 1040x how to A U. 1040x how to S. 1040x how to tax return (Form 1040NR) reporting U. 1040x how to S. 1040x how to source income according to the rules for a nonresident alien. 1040x how to See the instructions for Form 1040NR. 1040x how to   If you are not a bona fide resident of the USVI during the entire tax year, and you are not including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 8689) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040x how to S. 1040x how to tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. 1040x how to O. 1040x how to Box 1303 Charlotte, NC 28201-1303  USA   Send your USVI tax return and all attachments to:  Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040x how to Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. 1040x how to Joint return. 1040x how to   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040x how to If the spouse with the greater AGI is a bona fide resident of the USVI during the entire tax year, file the joint return with the USVI. 1040x how to If the spouse with the greater AGI is a U. 1040x how to S. 1040x how to citizen or resident alien of the United States but not a bona fide resident of the USVI during the entire tax year, file the joint return with the United States. 1040x how to For this purpose, income is determined without regard to community property laws. 1040x how to Example. 1040x how to Marge Birch, a U. 1040x how to S. 1040x how to citizen, was a resident of the United States, and her spouse, a citizen of the USVI, was a bona fide resident of the USVI during the entire tax year. 1040x how to Marge earned $55,000 as an architect in the United States. 1040x how to Her spouse earned $30,000 as a librarian in the USVI. 1040x how to Marge and her spouse will file a joint return. 1040x how to Because Marge has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. 1040x how to U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If you are a member of the U. 1040x how to S. 1040x how to Armed Forces who qualified as a bona fide resident of the U. 1040x how to S. 1040x how to Virgin Islands in a prior tax year, your absence from the U. 1040x how to S. 1040x how to Virgin Islands solely in compliance with military orders will not change your bona fide residency. 1040x how to If you did not qualify as a bona fide resident of the U. 1040x how to S. 1040x how to Virgin Islands in a prior tax year, your presence in the U. 1040x how to S. 1040x how to Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. 1040x how to S. 1040x how to Virgin Islands. 1040x how to Civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces. 1040x how to   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040x how to S. 1040x how to Armed Forces ), your tax residence is the USVI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040x how to However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the USVI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040x how to S. 1040x how to tax return (Form 1040) and a state and/or local tax return, if required. 1040x how to If you have income from the USVI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 8689 with your U. 1040x how to S. 1040x how to tax return. 1040x how to In this case, follow the guidance under U. 1040x how to S. 1040x how to Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. 1040x how to Moving expense deduction. 1040x how to   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. 1040x how to Likewise, the expenses of a move back to the United States are generally attributable to U. 1040x how to S. 1040x how to earned income. 1040x how to   If your move was to the USVI, report your deduction for moving expenses as follows. 1040x how to If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. 1040x how to If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 8689, line 20. 1040x how to   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040x how to Foreign tax credit. 1040x how to   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. 1040x how to S. 1040x how to income tax return for tax paid to the USVI. 1040x how to However, individuals other than bona fide residents of the USVI may claim a direct credit for such tax (see Form 8689 earlier in this section). 1040x how to Self-employment tax. 1040x how to   If you have no U. 1040x how to S. 1040x how to filing requirement, but have income that is effectively connected with a trade or business in the USVI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040x how to Additional Medicare Tax. 1040x how to   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040x how to Also, you may need to report Additional Medicare Tax withheld by your employer. 1040x how to For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040x how to S. 1040x how to Tax Return in chapter 4. 1040x how to Estimated tax payments. 1040x how to   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. 1040x how to   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040x how to Thomas, VI 00802   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040x how to irs. 1040x how to gov/e-pay. 1040x how to   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. 1040x how to Extension of time to file. 1040x how to   You can get an automatic 6-month extension of time to file your tax return. 1040x how to See Extension of Time To File in chapter 4. 1040x how to Bona fide residents of the USVI during the entire tax year must file a paper Form 4868 with the Virgin Islands Bureau of Internal Revenue. 1040x how to Nonresidents of the USVI should file separate extension requests with the IRS and the Virgin Islands Bureau of Internal Revenue and make any payments due to the respective jurisdictions. 1040x how to However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. 1040x how to Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. 1040x how to S. 1040x how to Virgin Islands. 1040x how to See Double Taxation in chapter 4. 1040x how to Prev  Up  Next   Home   More 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Page Last Reviewed or Updated: 18-Feb-2014

The 1040x How To

1040x how to 2. 1040x how to   Source of Income Table of Contents Introduction Topics - This chapter discusses: Resident Aliens Nonresident AliensInterest Income Dividends Guarantee of Indebtedness Personal Services Transportation Income Scholarships, Grants, Prizes, and Awards Pensions and Annuities Rents or Royalties Real Property Personal Property Community Income Introduction After you have determined your alien status, you must determine the source of your income. 1040x how to This chapter will help you determine the source of different types of income you may receive during the tax year. 1040x how to This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. 1040x how to Topics - This chapter discusses: Income source rules, and Community income. 1040x how to Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. 1040x how to S. 1040x how to citizen. 1040x how to If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U. 1040x how to S. 1040x how to tax return. 1040x how to You must report these amounts from sources within and outside the United States. 1040x how to Nonresident Aliens A nonresident alien usually is subject to U. 1040x how to S. 1040x how to income tax only on U. 1040x how to S. 1040x how to source income. 1040x how to Under limited circumstances, certain foreign source income is subject to U. 1040x how to S. 1040x how to tax. 1040x how to See Foreign Income in chapter 4. 1040x how to The general rules for determining U. 1040x how to S. 1040x how to source income that apply to most nonresident aliens are shown in Table 2-1. 1040x how to The following discussions cover the general rules as well as the exceptions to these rules. 1040x how to Not all items of U. 1040x how to S. 1040x how to source income are taxable. 1040x how to See chapter 3. 1040x how to Interest Income Generally, U. 1040x how to S. 1040x how to source interest income includes the following items. 1040x how to Interest on bonds, notes, or other interest-bearing obligations of U. 1040x how to S. 1040x how to residents or domestic corporations. 1040x how to Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. 1040x how to S. 1040x how to trade or business at any time during the tax year. 1040x how to Original issue discount. 1040x how to Interest from a state, the District of Columbia, or the U. 1040x how to S. 1040x how to Government. 1040x how to The place or manner of payment is immaterial in determining the source of the income. 1040x how to A substitute interest payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as the interest on the transferred security. 1040x how to Exceptions. 1040x how to   U. 1040x how to S. 1040x how to source interest income does not include the following items. 1040x how to Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 80% of the payer's total gross income: Is from sources outside the United States, and Is attributable to the active conduct of a trade or business by the individual or corporation in a foreign country or a U. 1040x how to S. 1040x how to possession. 1040x how to However, the interest will be considered U. 1040x how to S. 1040x how to source interest income if either of the following apply. 1040x how to The recipient of the interest is related to the resident alien or domestic corporation. 1040x how to See section 954(d)(3) for the definition of related person. 1040x how to The terms of the obligation are significantly modified after August 9, 2010. 1040x how to Any extension of the term of the obligation is considered a significant modification. 1040x how to Interest paid by a foreign branch of a domestic corporation or a domestic partnership on deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law if the interest paid or credited can be deducted by the association. 1040x how to Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business. 1040x how to Dividends In most cases, dividend income received from domestic corporations is U. 1040x how to S. 1040x how to source income. 1040x how to Dividend income from foreign corporations is usually foreign source income. 1040x how to Exceptions to both of these rules are discussed below. 1040x how to A substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a distribution on the transferred security. 1040x how to Dividend equivalent payments. 1040x how to   U. 1040x how to S. 1040x how to source dividends also include all dividend equivalent payments. 1040x how to Dividend equivalent payments include substitute dividends, payments made pursuant to a specified notional principal contract, and all similar payments that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U. 1040x how to S. 1040x how to sources. 1040x how to    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. 1040x how to You can view this regulation at www. 1040x how to irs. 1040x how to gov/irb/2013-52_IRB/ar08. 1040x how to html. 1040x how to First exception. 1040x how to   Dividends received from a domestic corporation are not U. 1040x how to S. 1040x how to source income if the corporation elects to take the American Samoa economic development credit. 1040x how to Second exception. 1040x how to   Part of the dividends received from a foreign corporation is U. 1040x how to S. 1040x how to source income if 25% or more of its total gross income for the 3-year period ending with the close of its tax year preceding the declaration of dividends was effectively connected with a trade or business in the United States. 1040x how to If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. 1040x how to Determine the part that is U. 1040x how to S. 1040x how to source income by multiplying the dividend by the following fraction. 1040x how to   Foreign corporation's gross income connected with a U. 1040x how to S. 1040x how to trade or business for the 3-year period     Foreign corporation's gross income from all sources for that period   Guarantee of Indebtedness Certain amounts received directly or indirectly, for the provision of a guarantee of indebtedness issued after September 27, 2010, are U. 1040x how to S. 1040x how to source income. 1040x how to They must be paid by a noncorporate resident or U. 1040x how to S. 1040x how to corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. 1040x how to S. 1040x how to trade or business. 1040x how to For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). 1040x how to Personal Services All wages and any other compensation for services performed in the United States are considered to be from sources in the United States. 1040x how to The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. 1040x how to If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. 1040x how to Compensation (other than certain fringe benefits) is sourced on a time basis. 1040x how to Certain fringe benefits (such as housing and education) are sourced on a geographical basis. 1040x how to Or, you may be permitted to use an alternative basis to determine the source of compensation. 1040x how to See Alternative Basis , later. 1040x how to Multi-level marketing. 1040x how to   Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. 1040x how to Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. 1040x how to The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable. 1040x how to Self-employed individuals. 1040x how to   If you are self-employed, you determine the source of compensation for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. 1040x how to In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. 1040x how to Time Basis Use a time basis to figure your U. 1040x how to S. 1040x how to source compensation (other than the fringe benefits discussed later). 1040x how to Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed services in the United States during the year     Total number of days you performed services during the year   You can use a unit of time less than a day in the above fraction, if appropriate. 1040x how to The time period for which the compensation is made does not have to be a year. 1040x how to Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. 1040x how to Example 1. 1040x how to Christina Brooks, a resident of the Netherlands, worked 240 days for a U. 1040x how to S. 1040x how to company during the tax year. 1040x how to She received $80,000 in compensation. 1040x how to None of it was for fringe benefits. 1040x how to Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. 1040x how to Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. 1040x how to S. 1040x how to source income. 1040x how to Example 2. 1040x how to Rob Waters, a resident of South Africa, is employed by a corporation. 1040x how to His annual salary is $100,000. 1040x how to None of it is for fringe benefits. 1040x how to During the first quarter of the year he worked entirely within the United States. 1040x how to On April 1, Rob was transferred to Singapore for the remainder of the year. 1040x how to Rob is able to establish that the first quarter of the year and the last 3 quarters of the year are two separate, distinct, and continuous periods of time. 1040x how to Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. 1040x how to 25 × $100,000). 1040x how to All of it is U. 1040x how to S. 1040x how to source income because he worked entirely within the United States during that quarter. 1040x how to The remaining $75,000 is attributable to the last three quarters of the year. 1040x how to During those quarters, he worked 150 days in Singapore and 30 days in the United States. 1040x how to His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. 1040x how to Of this $75,000, $12,500 ($75,000 × 30/180) is U. 1040x how to S. 1040x how to source income. 1040x how to Multi-year compensation. 1040x how to   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. 1040x how to Multi-year compensation is compensation that is included in your income in one tax year but that is attributable to a period that includes two or more tax years. 1040x how to   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. 1040x how to For example, an amount of compensation that specifically relates to a period of time that includes several calendar years is attributable to the entire multi-year period. 1040x how to   The amount of compensation treated as from U. 1040x how to S. 1040x how to sources is figured by multiplying the total multi-year compensation by a fraction. 1040x how to The numerator of the fraction is the number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in the United States in connection with the project. 1040x how to The denominator of the fraction is the total number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the project. 1040x how to Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. 1040x how to Housing. 1040x how to Education. 1040x how to Local transportation. 1040x how to Tax reimbursement. 1040x how to Hazardous or hardship duty pay as defined in Regulations section 1. 1040x how to 861-4(b)(2)(ii)(D)(5). 1040x how to Moving expense reimbursement. 1040x how to The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. 1040x how to Principal place of work. 1040x how to   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. 1040x how to Your principal place of work is usually the place where you spend most of your working time. 1040x how to This could be your office, plant, store, shop, or other location. 1040x how to If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. 1040x how to   If you have more than one job at any time, your main job location depends on the facts in each case. 1040x how to The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. 1040x how to Housing. 1040x how to   The source of a housing fringe benefit is determined based on the location of your principal place of work. 1040x how to A housing fringe benefit includes payments to you or on your behalf (and your family's if your family resides with you) only for the following. 1040x how to Rent. 1040x how to Utilities (except telephone charges). 1040x how to Real and personal property insurance. 1040x how to Occupancy taxes not deductible under section 164 or 216(a). 1040x how to Nonrefundable fees for securing a leasehold. 1040x how to Rental of furniture and accessories. 1040x how to Household repairs. 1040x how to Residential parking. 1040x how to Fair rental value of housing provided in kind by your employer. 1040x how to   A housing fringe benefit does not include: Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation), The cost of buying property, including principal payments on a mortgage, The cost of domestic labor (maids, gardeners, etc. 1040x how to ), Pay television subscriptions, Improvements and other expenses that increase the value or appreciably prolong the life of property, Purchased furniture or accessories, Depreciation or amortization of property or improvements, The value of meals or lodging that you exclude from gross income, or The value of meals or lodging that you deduct as moving expenses. 1040x how to Education. 1040x how to   The source of an education fringe benefit for the education expenses of your dependents is determined based on the location of your principal place of work. 1040x how to An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. 1040x how to Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. 1040x how to Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. 1040x how to Local transportation. 1040x how to   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. 1040x how to Your local transportation fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. 1040x how to The amount treated as a local transportation fringe benefit is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. 1040x how to Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. 1040x how to Tax reimbursement. 1040x how to   The source of a tax reimbursement fringe benefit is determined based on the location of the jurisdiction that imposed the tax for which you are reimbursed. 1040x how to Moving expense reimbursement. 1040x how to   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. 1040x how to However, the source is determined based on the location of your former principal place of work if you provide sufficient evidence that such determination of source is more appropriate under the facts and circumstances of your case. 1040x how to Sufficient evidence generally requires an agreement between you and your employer, or a written statement of company policy, which is reduced to writing before the move and which is entered into or established to induce you or other employees to move to another country. 1040x how to The written statement or agreement must state that your employer will reimburse you for moving expenses that you incur to return to your former principal place of work regardless of whether you continue to work for your employer after returning to that location. 1040x how to It may contain certain conditions upon which the right to reimbursement is determined as long as those conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of work. 1040x how to Alternative Basis If you are an employee, you can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your compensation than the time or geographical basis. 1040x how to If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your compensation. 1040x how to Also, if your total compensation from all sources is $250,000 or more, check “Yes” to both questions on line K on page 5 of Form 1040NR, and attach a written statement to your tax return that sets forth all of the following. 1040x how to Your name and social security number (written across the top of the statement). 1040x how to The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. 1040x how to For each item in (2), the alternative basis of allocation of source used. 1040x how to For each item in (2), a computation showing how the alternative allocation was computed. 1040x how to A comparison of the dollar amount of the U. 1040x how to S. 1040x how to compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. 1040x how to Transportation Income Transportation income is income from the use of a vessel or aircraft or for the performance of services directly related to the use of any vessel or aircraft. 1040x how to This is true whether the vessel or aircraft is owned, hired, or leased. 1040x how to The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. 1040x how to All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. 1040x how to If the transportation begins or ends in the United States, 50% of the transportation income is treated as derived from sources in the United States. 1040x how to For transportation income from personal services, 50% of the income is U. 1040x how to S. 1040x how to source income if the transportation is between the United States and a U. 1040x how to S. 1040x how to possession. 1040x how to For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. 1040x how to For information on how U. 1040x how to S. 1040x how to source transportation income is taxed, see chapter 4. 1040x how to Scholarships, Grants, Prizes, and Awards Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. 1040x how to However, see Activities to be performed outside the United States , later. 1040x how to For example, payments for research or study in the United States made by the United States, a noncorporate U. 1040x how to S. 1040x how to resident, or a domestic corporation, are from U. 1040x how to S. 1040x how to sources. 1040x how to Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. 1040x how to S. 1040x how to agent. 1040x how to Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. 1040x how to Activities to be performed outside the United States. 1040x how to   Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United States are not U. 1040x how to S. 1040x how to source income. 1040x how to    These rules do not apply to amounts paid as salary or other compensation for services. 1040x how to See Personal Services, earlier, for the source rules that apply. 1040x how to Pensions and Annuities If you receive a pension from a domestic trust for services performed both in and outside the United States, part of the pension payment is from U. 1040x how to S. 1040x how to sources. 1040x how to That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. 1040x how to This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). 1040x how to If you performed services as an employee of the United States, you may receive a distribution from the U. 1040x how to S. 1040x how to Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. 1040x how to Your U. 1040x how to S. 1040x how to source income is the otherwise taxable amount of the distribution that is attributable to your total U. 1040x how to S. 1040x how to Government basic pay other than tax-exempt pay for services performed outside the United States. 1040x how to Rents or Royalties Your U. 1040x how to S. 1040x how to source income includes rent and royalty income received during the tax year from property located in the United States or from any interest in that property. 1040x how to U. 1040x how to S. 1040x how to source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property. 1040x how to Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. 1040x how to Gross income from sources in the United States includes gains, profits, and income from the sale or other disposition of real property located in the United States. 1040x how to Natural resources. 1040x how to   The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a foreign country, or located in a foreign country and sold in the United States, is partly from sources in the United States. 1040x how to For information on determining that part, see section 1. 1040x how to 863-1(b) of the regulations. 1040x how to Table 2-1. 1040x how to Summary of Source Rules for Income of Nonresident Aliens Item of income Factor determining source Salaries, wages, other compensation Where services performed Business income:   Personal services Where services performed Sale of inventory—purchased Where sold Sale of inventory—produced Allocation Interest Residence of payer Dividends Whether a U. 1040x how to S. 1040x how to or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. 1040x how to Where property is used Sale of real property Location of property Sale of personal property Seller's tax home (but see Personal Property , later, for exceptions) Pension distributions attributable to contributions Where services were performed that earned the pension Investment earnings on pension contributions Location of pension trust Sale of natural resources Allocation based on fair market value of product at export terminal. 1040x how to For more information, see section 1. 1040x how to 863-1(b) of the regulations. 1040x how to *Exceptions include: a) Dividends paid by a U. 1040x how to S. 1040x how to corporation are foreign source if the corporation elects the  American Samoa economic development credit. 1040x how to  b) Part of a dividend paid by a foreign corporation is U. 1040x how to S. 1040x how to source if at least 25% of the  corporation's gross income is effectively connected with a U. 1040x how to S. 1040x how to trade or business for the  3 tax years before the year in which the dividends are declared. 1040x how to Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. 1040x how to Gain or loss from the sale or exchange of personal property generally has its source in the United States if you have a tax home in the United States. 1040x how to If you do not have a tax home in the United States, the gain or loss generally is considered to be from sources outside the United States. 1040x how to Tax home. 1040x how to   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 how to Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 1040x how to 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 how to If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040x how to Inventory property. 1040x how to   Inventory property is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. 1040x how to Income from the sale of inventory that you purchased is sourced where the property is sold. 1040x how to Generally, this is where title to the property passes to the buyer. 1040x how to For example, income from the sale of inventory in the United States is U. 1040x how to S. 1040x how to source income, whether you purchased it in the United States or in a foreign country. 1040x how to   Income from the sale of inventory property that you produced in the United States and sold outside the United States (or vice versa) is partly from sources in the United States and partly from sources outside the United States. 1040x how to For information on making this allocation, see section 1. 1040x how to 863-3 of the regulations. 1040x how to   These rules apply even if your tax home is not in the United States. 1040x how to Depreciable property. 1040x how to   To determine the source of any gain from the sale of depreciable personal property, you must first figure the part of the gain that is not more than the total depreciation adjustments on the property. 1040x how to You allocate this part of the gain to sources in the United States based on the ratio of U. 1040x how to S. 1040x how to depreciation adjustments to total depreciation adjustments. 1040x how to The rest of this part of the gain is considered to be from sources outside the United States. 1040x how to   For this purpose, “U. 1040x how to S. 1040x how to depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. 1040x how to S. 1040x how to sources. 1040x how to However, if the property is used predominantly in the United States during a tax year, all depreciation deductions allowable for that year are treated as U. 1040x how to S. 1040x how to depreciation adjustments. 1040x how to But there are some exceptions for certain transportation, communications, and other property used internationally. 1040x how to   Gain from the sale of depreciable property that is more than the total depreciation adjustments on the property is sourced as if the property were inventory property, as discussed above. 1040x how to   A loss is sourced in the same way as the depreciation deductions were sourced. 1040x how to However, if the property was used predominantly in the United States, the entire loss reduces U. 1040x how to S. 1040x how to source income. 1040x how to   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. 1040x how to Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. 1040x how to The amount you can deduct depends on the property's cost, when you began using the property, how long it will take to recover your cost, and which depreciation method you use. 1040x how to A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. 1040x how to Intangible property. 1040x how to   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. 1040x how to The gain from the sale of amortizable or depreciable intangible property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the original deductions were sourced. 1040x how to This is the same as the source rule for gain from the sale of depreciable property. 1040x how to See Depreciable property , earlier, for details on how to apply this rule. 1040x how to   Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is used if the income from the sale is contingent on the productivity, use, or disposition of that property. 1040x how to If the income is not contingent on the productivity, use, or disposition of the property, the income is sourced according to your tax home as discussed earlier. 1040x how to If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. 1040x how to Sales through offices or fixed places of business. 1040x how to   Despite any of the earlier rules, if you do not have a tax home in the United States, but you maintain an office or other fixed place of business in the United States, treat the income from any sale of personal property (including inventory property) that is attributable to that office or place of business as U. 1040x how to S. 1040x how to source income. 1040x how to However, this rule does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your office or other fixed place of business outside the United States materially participated in the sale. 1040x how to   If you have a tax home in the United States but maintain an office or other fixed place of business outside the United States, income from sales of personal property, other than inventory, depreciable property, or intangibles, that is attributable to that foreign office or place of business may be treated as U. 1040x how to S. 1040x how to source income. 1040x how to The income is treated as U. 1040x how to S. 1040x how to source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. 1040x how to This rule also applies to losses if the foreign country would have imposed an income tax of less than 10% had the sale resulted in a gain. 1040x how to Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. 1040x how to S. 1040x how to state, or a U. 1040x how to S. 1040x how to possession, you generally must follow those laws to determine the income of yourself and your spouse for U. 1040x how to S. 1040x how to tax purposes. 1040x how to But you must disregard certain community property laws if: Both you and your spouse are nonresident aliens, or One of you is a nonresident alien and the other is a U. 1040x how to S. 1040x how to citizen or resident and you do not both choose to be treated as U. 1040x how to S. 1040x how to residents as explained in chapter 1. 1040x how to In these cases, you and your spouse must report community income as explained later. 1040x how to Earned income. 1040x how to   Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the spouse whose services produced the income. 1040x how to That spouse must report all of it on his or her separate return. 1040x how to Trade or business income. 1040x how to   Trade or business income, other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on the trade or business. 1040x how to That spouse must report all of it on his or her separate return. 1040x how to Partnership income (or loss). 1040x how to   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. 1040x how to The partner must report all of it on his or her separate return. 1040x how to Separate property income. 1040x how to   Income derived from the separate property of one spouse (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. 1040x how to That spouse must report all of it on his or her separate return. 1040x how to Use the appropriate community property law to determine what is separate property. 1040x how to Other community income. 1040x how to   All other community income is treated as provided by the applicable community property laws. 1040x how to Prev  Up  Next   Home   More Online Publications