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Aarp tax preparation sites 5. Aarp tax preparation sites   Figuring Your Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Identification NumberF-1 and M-1 visa holders. Aarp tax preparation sites J-1 visa holders. Aarp tax preparation sites Filing StatusResident Aliens Nonresident Aliens Reporting Your Income DeductionsResident Aliens Nonresident Aliens ExemptionsResident Aliens Nonresident Aliens Itemized DeductionsResident Aliens Nonresident Aliens Tax Credits and PaymentsResident Aliens Nonresident Aliens Bona Fide Residents of American Samoa or Puerto Rico Introduction After you have determined your alien status, the source of your income, and if and how that income is taxed in the United States, your next step is to figure your tax. Aarp tax preparation sites The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. Aarp tax preparation sites Resident aliens should get publications, forms, and instructions for U. Aarp tax preparation sites S. Aarp tax preparation sites citizens, because the information for filing returns for resident aliens is generally the same as for U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites If you are both a nonresident alien and a resident alien in the same tax year, see chapter 6 for a discussion of dual-status aliens. Aarp tax preparation sites Topics - This chapter discusses: Identification numbers, Filing status, Deductions, Exemptions, Tax credits and payments, and Special rules for bona fide residents of American Samoa and Puerto Rico. Aarp tax preparation sites Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 521 Moving Expenses 526 Charitable Contributions 535 Business Expenses 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) W-7 Application for IRS Individual Taxpayer Identification Number 1040 U. Aarp tax preparation sites S. Aarp tax preparation sites Individual Income Tax Return 1040NR U. Aarp tax preparation sites S. Aarp tax preparation sites Nonresident Alien Income Tax Return 1040NR-EZ U. Aarp tax preparation sites S. Aarp tax preparation sites Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4563 Exclusion of Income for Bona Fide Residents of American Samoa 8959 Additional Medicare Tax See chapter 12 for information about getting these publications and forms. Aarp tax preparation sites Tax Year You must figure your income and file a tax return on the basis of an annual accounting period called a tax year. Aarp tax preparation sites If you have not previously established a fiscal tax year, your tax year is the calendar year. Aarp tax preparation sites A calendar year is 12 consecutive months ending on December 31. Aarp tax preparation sites If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December or a 52–53 week year) and are considered to be a U. Aarp tax preparation sites S. Aarp tax preparation sites resident for any calendar year, you will be treated as a U. Aarp tax preparation sites S. Aarp tax preparation sites resident for any part of your fiscal year that falls within that calendar year. Aarp tax preparation sites Identification Number A taxpayer identification number must be furnished on returns, statements, and other tax-related documents. Aarp tax preparation sites For an individual, this is a social security number (SSN). Aarp tax preparation sites If you do not have and are not eligible to get an SSN, you must apply for an individual taxpayer identification number (ITIN). Aarp tax preparation sites An employer identification number (EIN) is required if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan. Aarp tax preparation sites You must furnish a taxpayer identification number if you are: An alien who has income effectively connected with the conduct of a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business at any time during the year, An alien who has a U. Aarp tax preparation sites S. Aarp tax preparation sites office or place of business at any time during the year, A nonresident alien spouse treated as a resident, as discussed in chapter 1, or Any other alien who files a tax return, an amended return, or a refund claim (but not information returns). Aarp tax preparation sites Social security number (SSN). Aarp tax preparation sites   Generally, you can get an SSN if you have been lawfully admitted to the United States for permanent residence or under other immigration categories that authorize U. Aarp tax preparation sites S. Aarp tax preparation sites employment. Aarp tax preparation sites   To apply for this number, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration (SSA) office or call the SSA at 1-800-772-1213. Aarp tax preparation sites You can also download Form SS-5 from the SSA's website at www. Aarp tax preparation sites socialsecurity. Aarp tax preparation sites gov/ssnumber/ss5. Aarp tax preparation sites htm. Aarp tax preparation sites You must visit an SSA office in person and submit your Form SS-5 along with original documentation showing your age, identity, immigration status, and authority to work in the United States. Aarp tax preparation sites Generally, you will receive your card about 2 weeks after the SSA has all of the necessary information. Aarp tax preparation sites F-1 and M-1 visa holders. Aarp tax preparation sites    If you are an F-1 or M-1 student, you must also show your Form I-20. Aarp tax preparation sites For more information, see SSA Publication 05-10181, International Students and Social Security Numbers, available online at www. Aarp tax preparation sites socialsecurity. Aarp tax preparation sites gov/pubs/10181. Aarp tax preparation sites html. Aarp tax preparation sites J-1 visa holders. Aarp tax preparation sites   If you are a J-1 exchange visitor, you will also need to show your Form DS-2019. Aarp tax preparation sites For more information, see SSA Publication 05-10107, Foreign Workers and Social Security Numbers, available online at www. Aarp tax preparation sites socialsecurity. Aarp tax preparation sites gov/pubs/10107. Aarp tax preparation sites html. Aarp tax preparation sites Individual taxpayer identification number (ITIN). Aarp tax preparation sites   If you do not have and are not eligible to get an SSN, you must apply for an ITIN. Aarp tax preparation sites For details on how to do so, see Form W-7 and its instructions. Aarp tax preparation sites Allow 6 to 10 weeks for the IRS to notify you of your ITIN. Aarp tax preparation sites If you already have an ITIN, enter it wherever an SSN is required on your tax return. Aarp tax preparation sites   An ITIN is for tax use only. Aarp tax preparation sites It does not entitle you to social security benefits or change your employment or immigration status under U. Aarp tax preparation sites S. Aarp tax preparation sites law. Aarp tax preparation sites   In addition to those aliens who are required to furnish a taxpayer identification number and are not eligible for an SSN, a Form W-7 must be filed for: Alien individuals who are claimed as dependents and are not eligible for an SSN, and Alien spouses who are claimed as exemptions and are not eligible for an SSN. Aarp tax preparation sites Employer identification number (EIN). Aarp tax preparation sites   An individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes. Aarp tax preparation sites To apply for an EIN, file Form SS-4, Application for Employer Identification Number, with the IRS. Aarp tax preparation sites Filing Status The amount of your tax depends on your filing status. Aarp tax preparation sites Your filing status is important in determining whether you can take certain deductions and credits. Aarp tax preparation sites The rules for determining your filing status are different for resident aliens and nonresident aliens. Aarp tax preparation sites Resident Aliens Resident aliens can use the same filing statuses available to U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites See your form instructions or Publication 501 for more information on filing status. Aarp tax preparation sites Married filing jointly. Aarp tax preparation sites   Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Aarp tax preparation sites Qualifying widow(er). Aarp tax preparation sites   If your spouse died in 2011 or 2012, you did not remarry before the end of 2013, and you have a dependent child living with you, you may qualify to file as a qualifying widow(er) and use the joint return tax rates. Aarp tax preparation sites This applies only if you could have filed a joint return with your spouse for the year your spouse died. Aarp tax preparation sites Head of household. Aarp tax preparation sites   You can qualify as head of household if you are unmarried or considered unmarried on the last day of the year and you pay more than half the cost of keeping up a home for you and a qualifying person. Aarp tax preparation sites You must be a resident alien for the entire tax year. Aarp tax preparation sites   You are considered unmarried for this purpose if your spouse was a nonresident alien at any time during the year and you do not make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Aarp tax preparation sites Note. Aarp tax preparation sites   Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit. Aarp tax preparation sites In that case, you will not be entitled to the credit. Aarp tax preparation sites See Publication 596 for more information. Aarp tax preparation sites Nonresident Aliens If you are a nonresident alien filing Form 1040NR, you may be able to use one of the filing statuses discussed later. Aarp tax preparation sites If you are filing Form 1040NR-EZ, you can only claim “Single nonresident alien” or “Married nonresident alien” as your filing status. Aarp tax preparation sites Married nonresident alien. Aarp tax preparation sites   Married nonresident aliens who are not married to U. Aarp tax preparation sites S. Aarp tax preparation sites citizens or residents generally must use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when determining the tax on income effectively connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites Exceptions. Aarp tax preparation sites   Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation Worksheet for single individuals. Aarp tax preparation sites However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a married resident of Canada, Mexico, South Korea, or are a married U. Aarp tax preparation sites S. Aarp tax preparation sites national. Aarp tax preparation sites See the instructions for Form 1040NR or Form 1040NR-EZ to see if you qualify. Aarp tax preparation sites U. Aarp tax preparation sites S. Aarp tax preparation sites national is defined later in this section under Qualifying widow(er) . Aarp tax preparation sites   A nonresident alien generally cannot file as married filing jointly. Aarp tax preparation sites However, a nonresident alien who is married to a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. Aarp tax preparation sites For information on these choices, see chapter 1. Aarp tax preparation sites If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately. Aarp tax preparation sites Qualifying widow(er). Aarp tax preparation sites   You may be eligible to file as a qualifying widow(er) and use the joint return tax rates if all of the following conditions apply. Aarp tax preparation sites You were a resident of Canada, Mexico, or South Korea, or a U. Aarp tax preparation sites S. Aarp tax preparation sites national (defined later). Aarp tax preparation sites Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Aarp tax preparation sites You have a dependent child living with you. Aarp tax preparation sites See the instructions for Form 1040NR for the rules for filing as a qualifying widow(er) with a dependent child. Aarp tax preparation sites   A U. Aarp tax preparation sites S. Aarp tax preparation sites national is an individual who, although not a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen, owes his or her allegiance to the United States. Aarp tax preparation sites U. Aarp tax preparation sites S. Aarp tax preparation sites nationals include American Samoans and Northern Mariana Islanders who chose to become U. Aarp tax preparation sites S. Aarp tax preparation sites nationals instead of U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites Head of household. Aarp tax preparation sites   You cannot file as head of household if you are a nonresident alien at any time during the tax year. Aarp tax preparation sites However, if you are married, your spouse can qualify as a head of household if: Your spouse is a resident alien or U. Aarp tax preparation sites S. Aarp tax preparation sites citizen for the entire tax year, You do not choose to be treated as a resident alien, and Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens . Aarp tax preparation sites Note. Aarp tax preparation sites   Even if your spouse is considered unmarried for head of household purposes because you are a nonresident alien, your spouse may still be considered married for purposes of the earned income credit. Aarp tax preparation sites In that case, your spouse will not be entitled to the credit. Aarp tax preparation sites See Publication 596 for more information. Aarp tax preparation sites Estates and trusts. Aarp tax preparation sites   A nonresident alien estate or trust using Form 1040NR must use Tax Rate Schedule W in the Form 1040NR instructions when determining the tax on income effectively connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites Special rules for aliens from certain U. Aarp tax preparation sites S. Aarp tax preparation sites possessions. Aarp tax preparation sites   A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who is temporarily working in the United States should read Bona Fide Residents of American Samoa or Puerto Rico, at the end of this chapter, for information about special rules. Aarp tax preparation sites Reporting Your Income You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. Aarp tax preparation sites For resident aliens, this includes income from sources both within and outside the United States. Aarp tax preparation sites For nonresident aliens, this includes both income that is effectively connected with a trade or business in the United States (subject to graduated tax rates) and income from U. Aarp tax preparation sites S. Aarp tax preparation sites sources that is not effectively connected (subject to a flat 30% tax rate or lower tax treaty rate). Aarp tax preparation sites Deductions Resident and nonresident aliens can claim similar deductions on their U. Aarp tax preparation sites S. Aarp tax preparation sites tax returns. Aarp tax preparation sites However, nonresident aliens generally can claim only deductions related to income that is effectively connected with their U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites Resident Aliens You can claim the same deductions allowed to U. Aarp tax preparation sites S. Aarp tax preparation sites citizens if you are a resident alien for the entire tax year. Aarp tax preparation sites While the discussion that follows contains some of the same general rules and guidelines that apply to you, it is specifically directed toward nonresident aliens. Aarp tax preparation sites You should get Form 1040 and instructions for more information on how to claim your allowable deductions. Aarp tax preparation sites Nonresident Aliens You can claim deductions to figure your effectively connected taxable income. Aarp tax preparation sites You generally cannot claim deductions related to income that is not connected with your U. Aarp tax preparation sites S. Aarp tax preparation sites business activities. Aarp tax preparation sites Except for personal exemptions, and certain itemized deductions, discussed later, you can claim deductions only to the extent they are connected with your effectively connected income. Aarp tax preparation sites Ordinary and necessary business expenses. Aarp tax preparation sites   You can deduct all ordinary and necessary expenses in the operation of your U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business to the extent they relate to income effectively connected with that trade or business. Aarp tax preparation sites The deduction for travel expenses while in the United States is discussed under Itemized Deductions, later. Aarp tax preparation sites For information about other business expenses, see Publication 535. Aarp tax preparation sites Losses. Aarp tax preparation sites   You can deduct losses resulting from transactions that you entered into for profit and that you were not reimbursed for by insurance, etc. Aarp tax preparation sites to the extent that they relate to income that is effectively connected with a trade or business in the United States. Aarp tax preparation sites Educator expenses. Aarp tax preparation sites   If you were an eligible educator in 2013, you can deduct as an adjustment to income up to $250 in unreimbursed qualified expenses you paid or incurred during 2013 for books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment, and other equipment and materials used in the classroom. Aarp tax preparation sites For more information, see your tax form instructions. Aarp tax preparation sites Individual retirement arrangement (IRA). Aarp tax preparation sites   If you made contributions to a traditional IRA for 2013, you may be able to take an IRA deduction. Aarp tax preparation sites But you must have taxable compensation effectively connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business to do so. Aarp tax preparation sites A Form 5498 should be sent to you by May 31, 2014, that shows all contributions to your traditional IRA for 2013. Aarp tax preparation sites If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc. Aarp tax preparation sites ) at work or through self-employment, your IRA deduction may be reduced or eliminated. Aarp tax preparation sites But you can still make contributions to a traditional IRA even if you cannot deduct them. Aarp tax preparation sites If you made nondeductible contributions to a traditional IRA for 2013, you must report them on Form 8606, Nondeductible IRAs. Aarp tax preparation sites   For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Aarp tax preparation sites Moving expenses. Aarp tax preparation sites   If you are a nonresident alien temporarily in the United States earning taxable income for performing personal services, you can deduct moving expenses to the United States if you meet both of the following tests. Aarp tax preparation sites You are a full-time employee for at least 39 weeks during the 12 months right after you move, or if you are self-employed, you work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months right after you move. Aarp tax preparation sites Your new job location is at least 50 miles farther (by the shortest commonly traveled route) from your former home than your former job location was. Aarp tax preparation sites If you had no former job location, the new job location must be at least 50 miles from your former home. Aarp tax preparation sites   You cannot deduct the moving expense you have when returning to your home abroad or moving to a foreign job site. Aarp tax preparation sites   Figure your deductible moving expenses to the United States on Form 3903, and deduct them on line 26 of Form 1040NR. Aarp tax preparation sites   For more information on the moving expense deduction, see Publication 521. Aarp tax preparation sites Reimbursements. Aarp tax preparation sites   If your employer reimbursed you for allowable moving expenses under an accountable plan, your employer should have excluded these reimbursements from your income. Aarp tax preparation sites You can only deduct allowable moving expenses that were not reimbursed by your employer or that were reimbursed but the reimbursement was included in your income. Aarp tax preparation sites For more information, see Publication 521. Aarp tax preparation sites Moving expense or travel expense. Aarp tax preparation sites   If you deduct moving expenses to the United States, you cannot also deduct travel expenses (discussed later under Itemized Deductions) while temporarily away from your tax home in a foreign country. Aarp tax preparation sites Moving expenses are based on a change in your principal place of business while travel expenses are based on your temporary absence from your principal place of business. Aarp tax preparation sites Self-employed SEP, SIMPLE, and qualified retirement plans. Aarp tax preparation sites   If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. Aarp tax preparation sites To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites   Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. Aarp tax preparation sites Penalty on early withdrawal of savings. Aarp tax preparation sites   You must include in income all effectively connected interest income you receive or that is credited to your account during the year. Aarp tax preparation sites Do not reduce it by any penalty you must pay on an early withdrawal from a time savings account. Aarp tax preparation sites However, if the interest income is effectively connected with your U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business during the year, you can deduct on line 30 of Form 1040NR the amount of the early withdrawal penalty that the banking institution charged. Aarp tax preparation sites Student loan interest expense. Aarp tax preparation sites   If you paid interest on a student loan in 2013, you may be able to deduct up to $2,500 of the interest you paid. Aarp tax preparation sites Generally, you can claim the deduction if all the following requirements are met. Aarp tax preparation sites Your filing status is any filing status except married filing separately. Aarp tax preparation sites Your modified adjusted gross income is less than $75,000. Aarp tax preparation sites No one else is claiming an exemption for you on his or her 2013 tax return. Aarp tax preparation sites You paid interest on a loan taken out only to pay tuition and other qualified higher education expenses for yourself, your spouse, someone who was your dependent when the loan was taken out, or someone you could have claimed as a dependent for the year the loan was taken out except that: The person filed a joint return, The person had gross income that was equal to or more than the exemption amount for that year ($3,900 for 2013), or You could be claimed as a dependent on someone else's return. Aarp tax preparation sites The loan is not from a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. Aarp tax preparation sites The education expenses were paid or incurred within a reasonable period of time before or after the loan was taken out. Aarp tax preparation sites The person for whom the expenses were paid or incurred was an eligible student. Aarp tax preparation sites Use the worksheet in the Form 1040NR or Form 1040NR-EZ instructions to figure the deduction. Aarp tax preparation sites For more information, see Publication 970, Tax Benefits for Education. Aarp tax preparation sites Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Aarp tax preparation sites S. Aarp tax preparation sites tax return. Aarp tax preparation sites Resident Aliens You can claim personal exemptions and exemptions for dependents according to the dependency rules for U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites You can claim an exemption for your spouse on a separate return if your spouse had no gross income for U. Aarp tax preparation sites S. Aarp tax preparation sites tax purposes and was not the dependent of another taxpayer. Aarp tax preparation sites You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States. Aarp tax preparation sites You can claim an exemption for each person who qualifies as a dependent according to the rules for U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites The dependent must be a citizen or national (defined earlier) of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begins. Aarp tax preparation sites Get Publication 501 for more information. Aarp tax preparation sites Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Aarp tax preparation sites See Identification Number, earlier. Aarp tax preparation sites Nonresident Aliens Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption ($3,900 for 2013). Aarp tax preparation sites You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following discussions. Aarp tax preparation sites Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Aarp tax preparation sites See Identification Number, earlier. Aarp tax preparation sites Residents of Mexico or Canada or U. Aarp tax preparation sites S. Aarp tax preparation sites nationals. Aarp tax preparation sites   If you are a resident of Mexico or Canada or a national of the United States (defined earlier), you can also claim a personal exemption for your spouse if your spouse had no gross income for U. Aarp tax preparation sites S. Aarp tax preparation sites tax purposes and cannot be claimed as the dependent on another U. Aarp tax preparation sites S. Aarp tax preparation sites taxpayer's return. Aarp tax preparation sites In addition, you can claim exemptions for your dependents who meet certain tests. Aarp tax preparation sites Residents of Mexico, Canada, or nationals of the United States must use the same rules as U. Aarp tax preparation sites S. Aarp tax preparation sites citizens to determine who is a dependent and for which dependents exemptions can be claimed. Aarp tax preparation sites See Publication 501 for these rules. Aarp tax preparation sites For purposes of these rules, dependents who are U. Aarp tax preparation sites S. Aarp tax preparation sites nationals meet the citizenship test discussed in Publication 501. Aarp tax preparation sites Residents of South Korea. Aarp tax preparation sites   Nonresident aliens who are residents of South Korea may be able to claim exemptions for a spouse and children. Aarp tax preparation sites The income tax treaty with South Korea imposes two additional requirements on South Korean residents: The spouse and all children claimed must live with the alien in the United States at some time during the tax year, and The additional deduction for the exemptions must be prorated based on the ratio of the alien's U. Aarp tax preparation sites S. Aarp tax preparation sites source gross income effectively connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business for the tax year to the alien's entire income from all sources during the tax year. Aarp tax preparation sites Example. Aarp tax preparation sites Mr. Aarp tax preparation sites Park, a nonresident alien who is a resident of South Korea, lives temporarily in the United States with his wife and two children. Aarp tax preparation sites During the tax year he receives U. Aarp tax preparation sites S. Aarp tax preparation sites compensation of $18,000. Aarp tax preparation sites He also receives $6,000 of income from sources outside the United States that is not effectively connected with his U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites Thus, his total income for the year is $24,000. Aarp tax preparation sites Mr. Aarp tax preparation sites Park meets all requirements for claiming exemptions for his spouse and two children. Aarp tax preparation sites The additional deduction for 2013 is $8,775 figured as follows: $18,000 $24,000 × $11,700* = $8,775               *3 × $3,900 = $11,700   Students and business apprentices from India. Aarp tax preparation sites   Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty may be able to claim exemptions for their spouse and dependents. Aarp tax preparation sites   You can claim an exemption for your spouse if he or she had no gross income during the year and cannot be claimed as a dependent on another U. Aarp tax preparation sites S. Aarp tax preparation sites taxpayer's return. Aarp tax preparation sites   You can claim exemptions for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites See Publication 501 for these rules. Aarp tax preparation sites   List your spouse and dependents on line 7c of Form 1040NR. Aarp tax preparation sites Enter the total on the appropriate line to the right of line 7c. Aarp tax preparation sites Itemized Deductions Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Aarp tax preparation sites However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites Resident Aliens You can claim the same itemized deductions as U. Aarp tax preparation sites S. Aarp tax preparation sites citizens, using Schedule A of Form 1040. Aarp tax preparation sites These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. Aarp tax preparation sites If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. Aarp tax preparation sites For further information, see Form 1040 and instructions. Aarp tax preparation sites Nonresident Aliens You can deduct certain itemized deductions if you receive income effectively connected with your U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites These deductions include state and local income taxes, charitable contributions to U. Aarp tax preparation sites S. Aarp tax preparation sites organizations, casualty and theft losses, and miscellaneous deductions. Aarp tax preparation sites Use Schedule A of Form 1040NR to claim itemized deductions. Aarp tax preparation sites If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. Aarp tax preparation sites If you are claiming any other itemized deduction, you must file Form 1040NR. Aarp tax preparation sites Standard deduction. Aarp tax preparation sites   Nonresident aliens cannot claim the standard deduction. Aarp tax preparation sites However, see Students and business apprentices from India , next. Aarp tax preparation sites Students and business apprentices from India. Aarp tax preparation sites   A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. Aarp tax preparation sites You can claim the standard deduction provided you do not claim itemized deductions. Aarp tax preparation sites   Use Worksheet 5-1 to figure your standard deduction. Aarp tax preparation sites If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Aarp tax preparation sites State and local income taxes. Aarp tax preparation sites   You can deduct state and local income taxes you paid on income that is effectively connected with a trade or business in the United States. Aarp tax preparation sites If you received a refund or rebate in 2013 of taxes you paid in an earlier year, do not reduce your deduction by that amount. Aarp tax preparation sites Instead, you must include the refund or rebate in income if you deducted the taxes in the earlier year and the deduction reduced your tax. Aarp tax preparation sites See Recoveries in Publication 525 for details on how to figure the amount to include in income. Aarp tax preparation sites Charitable contributions. Aarp tax preparation sites   You can deduct your charitable contributions or gifts to qualified organizations subject to certain limits. Aarp tax preparation sites Qualified organizations include organizations that are religious, charitable, educational, scientific, or literary in nature, or that work to prevent cruelty to children or animals. Aarp tax preparation sites Certain organizations that promote national or international amateur sports competition are also qualified organizations. Aarp tax preparation sites Foreign organizations. Aarp tax preparation sites   Contributions made directly to a foreign organization are not deductible. Aarp tax preparation sites However, you can deduct contributions to a U. Aarp tax preparation sites S. Aarp tax preparation sites organization that transfers funds to a charitable foreign organization if the U. Aarp tax preparation sites S. Aarp tax preparation sites organization controls the use of the funds or if the foreign organization is only an administrative arm of the U. Aarp tax preparation sites S. Aarp tax preparation sites organization. Aarp tax preparation sites   For more information about organizations that qualify to receive charitable contributions, see Publication 526, Charitable Contributions. Aarp tax preparation sites Worksheet 5-1. Aarp tax preparation sites 2013 Standard Deduction Worksheet for Students and Business Apprentices From India Caution. Aarp tax preparation sites If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. Aarp tax preparation sites You cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Aarp tax preparation sites 1 Enter the amount shown below for your filing status. Aarp tax preparation sites           Single or married filing separately—$6,100 Qualifying widow(er)—$12,200 1. Aarp tax preparation sites           2 Can you be claimed as a dependent on someone else's U. Aarp tax preparation sites S. Aarp tax preparation sites income tax return?  No. Aarp tax preparation sites Enter the amount from line 1 on line 4. Aarp tax preparation sites Skip line 3 and go to line 5. Aarp tax preparation sites   Yes. Aarp tax preparation sites Go to line 3. Aarp tax preparation sites         3 Is your earned income* more than $650?           Yes. Aarp tax preparation sites Add $350 to your earned income. Aarp tax preparation sites Enter the total. Aarp tax preparation sites           No. Aarp tax preparation sites Enter $1,000 3. Aarp tax preparation sites       4 Enter the smaller of line 1 or line 3 4. Aarp tax preparation sites   5 If born before January 2, 1949, OR blind, enter $1,200 ($1,500 if single). Aarp tax preparation sites If born before January 2, 1949, AND blind, enter $2,400 ($3,000 if single). Aarp tax preparation sites Otherwise, enter -0- 5. Aarp tax preparation sites   6 Add lines 4 and 5. Aarp tax preparation sites Enter the total here and on Form 1040NR, line 38 (or Form 1040NR-EZ, line 11). Aarp tax preparation sites Print “Standard Deduction Allowed Under U. Aarp tax preparation sites S. Aarp tax preparation sites –India Income Tax Treaty” in the space to the left of these lines. Aarp tax preparation sites This is your standard deduction for 2013. Aarp tax preparation sites 6. Aarp tax preparation sites   *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Aarp tax preparation sites It also includes any amount received as a scholarship that you must include in your income. Aarp tax preparation sites Generally, your earned income is the total of the amount(s) you reported on Form 1040NR, lines 8,12,13, and 19, minus amounts on lines 27 and 31 (or Form 1040NR-EZ, lines 3 and 5, minus any amount on line 8). Aarp tax preparation sites Contributions from which you benefit. Aarp tax preparation sites   If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Aarp tax preparation sites   If you pay more than the fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. Aarp tax preparation sites For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Aarp tax preparation sites Cash contributions. Aarp tax preparation sites   You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written record from the charity. Aarp tax preparation sites The written record must include the name of the charity, date of the contribution, and the amount of the contribution. Aarp tax preparation sites   You may deduct a cash contribution of $250 or more only if you have a written statement from the charitable organization showing: The amount of any money contributed, Whether the organization gave you any goods or services in return for your contribution, and A description and estimate of the value of any goods or services described in (2). Aarp tax preparation sites If you received only intangible religious benefits, the organization must state this, but it does not have to describe or value the benefit. Aarp tax preparation sites Noncash contributions. Aarp tax preparation sites   For contributions not made in cash, the records you must keep depend on the amount of your deduction. Aarp tax preparation sites See Publication 526 for details. Aarp tax preparation sites For example, if you make a noncash contribution and the amount of your deduction is more than $500, you must complete and attach to your tax return Form 8283, Noncash Charitable Contributions. Aarp tax preparation sites If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. Aarp tax preparation sites If your total deduction is over $5,000, you also may have to get appraisals of the values of the property. Aarp tax preparation sites If the donated property is valued at more than $5,000, you must obtain a qualified appraisal. Aarp tax preparation sites You generally must attach to your tax return an appraisal of any property if your deduction for the property is more than $500,000. Aarp tax preparation sites See Form 8283 and its instructions for details. Aarp tax preparation sites Contributions of appreciated property. Aarp tax preparation sites   If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Aarp tax preparation sites However, if you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Aarp tax preparation sites Your basis in the property is generally what you paid for it. Aarp tax preparation sites If you need more information about basis, get Publication 551, Basis of Assets. Aarp tax preparation sites   Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Aarp tax preparation sites For information about these rules, see Publication 526. Aarp tax preparation sites Limit. Aarp tax preparation sites   The amount you can deduct in a tax year is limited in the same way it is for a citizen or resident of the United States. Aarp tax preparation sites For a discussion of limits on charitable contributions and other information, get Publication 526. Aarp tax preparation sites Casualty and theft losses. Aarp tax preparation sites   You can deduct your loss from fire, storm, shipwreck, or other casualty, or theft of property even though your property is not connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites The property can be personal use property or income-producing property not connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business. Aarp tax preparation sites The property must be located in the United States at the time of the casualty or theft. Aarp tax preparation sites You can deduct theft losses only in the year in which you discover the loss. Aarp tax preparation sites   The amount of the loss is the fair market value of the property immediately before the casualty or theft less its fair market value immediately after the casualty or theft (but not more than its cost or adjusted basis) less any insurance or other reimbursement. Aarp tax preparation sites The fair market value of property immediately after a theft is considered zero, because you no longer have the property. Aarp tax preparation sites   If your property is covered by insurance, you should file a timely insurance claim for reimbursement. Aarp tax preparation sites If you do not, you cannot deduct this loss as a casualty or theft loss. Aarp tax preparation sites   Figure your deductible casualty and theft losses on Form 4684, Casualties and Thefts. Aarp tax preparation sites Losses from personal use property. Aarp tax preparation sites    You cannot deduct the first $100 of each casualty or theft loss to property held for personal use. Aarp tax preparation sites You can deduct only the total of these losses for the year (reduced by the $100 limit) that is more than 10% of your adjusted gross income (line 37, Form 1040NR) for the year. Aarp tax preparation sites Losses from income-producing property. Aarp tax preparation sites   These losses are not subject to the limitations that apply to personal use property. Aarp tax preparation sites Use Section B of Form 4684 to figure your deduction for these losses. Aarp tax preparation sites Job expenses and other miscellaneous deductions. Aarp tax preparation sites   You can deduct job expenses, such as allowable unreimbursed travel expenses (discussed next), and other miscellaneous deductions. Aarp tax preparation sites Generally, the allowable deductions must be related to effectively connected income. Aarp tax preparation sites Deductible expenses include: Union dues, Safety equipment and small tools needed for your job, Dues to professional organizations, Subscriptions to professional journals, Tax return preparation fees, and Casualty and theft losses of property used in performing services as an employee (employee property). Aarp tax preparation sites   Most miscellaneous itemized deductions are deductible only if they are more than 2% of your adjusted gross income (line 37, Form 1040NR). Aarp tax preparation sites For more information on miscellaneous deductions, see the instructions for Form 1040NR. Aarp tax preparation sites Travel expenses. Aarp tax preparation sites   You may be able to deduct your ordinary and necessary travel expenses while you are temporarily performing personal services in the United States. Aarp tax preparation sites Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Aarp tax preparation sites You must be able to show you were present in the United States on an activity that required your temporary absence from your regular place of work. Aarp tax preparation sites   For example, if you have established a “tax home” through regular employment in a foreign country, and intend to return to similar employment in the same country at the end of your temporary stay in the United States, you can deduct reasonable travel expenses you paid. Aarp tax preparation sites You cannot deduct travel expenses for other members of your family or party. Aarp tax preparation sites Deductible travel expenses. Aarp tax preparation sites   If you qualify, you can deduct your expenses for: Transportation—airfare, local transportation, including train, bus, etc. Aarp tax preparation sites , Lodging—rent paid, utilities (do not include telephone), hotel or motel room expenses, and Meal expenses—actual expenses allowed if you keep records of the amounts, or, if you do not wish to keep detailed records, you are generally allowed a standard meal allowance amount depending on the date and area of your travel. Aarp tax preparation sites You generally can deduct only 50% of unreimbursed meal expenses. Aarp tax preparation sites The standard meal allowance rates for high-cost areas are available at www. Aarp tax preparation sites gsa. Aarp tax preparation sites gov/perdiem. Aarp tax preparation sites The rates for other areas are in Publication 463. Aarp tax preparation sites   Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 7 of Schedule A (Form 1040NR). Aarp tax preparation sites Expenses allocable to U. Aarp tax preparation sites S. Aarp tax preparation sites tax-exempt income. Aarp tax preparation sites   You cannot deduct an expense, or part of an expense, that is allocable to U. Aarp tax preparation sites S. Aarp tax preparation sites tax-exempt income, including income exempt by tax treaty. Aarp tax preparation sites Example. Aarp tax preparation sites Irina Oak, a citizen of Poland, resided in the United States for part of the year to acquire business experience from a U. Aarp tax preparation sites S. Aarp tax preparation sites company. Aarp tax preparation sites During her stay in the United States, she received a salary of $8,000 from her Polish employer. Aarp tax preparation sites She received no other U. Aarp tax preparation sites S. Aarp tax preparation sites source income. Aarp tax preparation sites She spent $3,000 on travel expenses, of which $1,000 were for meals. Aarp tax preparation sites None of these expenses were reimbursed. Aarp tax preparation sites Under the tax treaty with Poland, $5,000 of her salary is exempt from U. Aarp tax preparation sites S. Aarp tax preparation sites income tax. Aarp tax preparation sites In filling out Form 2106-EZ, she must reduce her deductible meal expenses by half ($500). Aarp tax preparation sites She must reduce the remaining $2,500 of travel expenses by 62. Aarp tax preparation sites 5% ($1,563) because 62. Aarp tax preparation sites 5% ($5,000 ÷ $8,000) of her salary is exempt from tax. Aarp tax preparation sites She enters the remaining total of $937 on line 7 of Schedule A (Form 1040NR). Aarp tax preparation sites She completes the remaining lines according to the instructions for Schedule A. Aarp tax preparation sites More information. Aarp tax preparation sites   For more information about deductible expenses, reimbursements, and recordkeeping, get Publication 463. Aarp tax preparation sites Tax Credits and Payments This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and payments for nonresident aliens. Aarp tax preparation sites Resident Aliens Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U. Aarp tax preparation sites S. Aarp tax preparation sites citizens. Aarp tax preparation sites The following items are some of the credits you may be able to claim. Aarp tax preparation sites Foreign tax credit. Aarp tax preparation sites   You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign country on foreign source income. Aarp tax preparation sites You cannot claim a credit for taxes paid or accrued on excluded foreign earned income. Aarp tax preparation sites To claim a credit for income taxes paid or accrued to a foreign country, you generally will file Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), with your Form 1040. Aarp tax preparation sites   For more information, get Publication 514, Foreign Tax Credit for Individuals. Aarp tax preparation sites Child and dependent care credit. Aarp tax preparation sites   You may be able to take this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Aarp tax preparation sites Generally, you must be able to claim an exemption for your dependent. Aarp tax preparation sites   For more information, get Publication 503, Child and Dependent Care Expenses, and Form 2441, Child and Dependent Care Expenses. Aarp tax preparation sites Credit for the elderly or the disabled. Aarp tax preparation sites   You may qualify for this credit if you are 65 or older or if you retired on permanent and total disability. Aarp tax preparation sites For more information on this credit, get Publication 524, Credit for the Elderly or the Disabled, and Schedule R (Form 1040A or 1040). Aarp tax preparation sites Education credits. Aarp tax preparation sites   You may qualify for these credits if you paid qualified education expenses for yourself, your spouse, or your dependent. Aarp tax preparation sites There are two education credits: the American Opportunity Credit and the lifetime learning credit. Aarp tax preparation sites You cannot claim these credits if you are married filing separately. Aarp tax preparation sites Use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to figure the credit. Aarp tax preparation sites For more information, see Publication 970. Aarp tax preparation sites Retirement savings contributions credit. Aarp tax preparation sites   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Aarp tax preparation sites You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than: $59,000, if your filing status is married filing jointly, $44,250, if your filing status is head of household, or $29,500, if your filing status is single, married filing separately, or qualifying widow(er). Aarp tax preparation sites Use Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the credit. Aarp tax preparation sites For more information, see Publication 590. Aarp tax preparation sites Child tax credit. Aarp tax preparation sites   You may be able to take this credit if you have a qualifying child. Aarp tax preparation sites   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Aarp tax preparation sites Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Aarp tax preparation sites Is a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen, a U. Aarp tax preparation sites S. Aarp tax preparation sites national, or a resident alien. Aarp tax preparation sites Did not provide over half of his or her own support for 2013. Aarp tax preparation sites Lived with you more than half of 2013. Aarp tax preparation sites Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Aarp tax preparation sites Is claimed as a dependent on your return. Aarp tax preparation sites An adopted child is always treated as your own child. Aarp tax preparation sites An adopted child includes a child lawfully placed with you for legal adoption. Aarp tax preparation sites   See your form instructions for additional details. Aarp tax preparation sites Adoption credit. Aarp tax preparation sites   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Aarp tax preparation sites This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Aarp tax preparation sites To claim the adoption credit, file Form 8839, Qualified Adoption Expenses, with your Form 1040. Aarp tax preparation sites Earned income credit. Aarp tax preparation sites   You may qualify for an earned income credit of up to $3,250 if a child lived with you in the United States and your earned income and adjusted gross income were each less than $37,870 ($43,210 if married filing jointly). Aarp tax preparation sites If two children lived with you in the United States and your earned income and adjusted gross income were each less than $43,038 ($48,378 if married filing jointly), your credit could be as much as $5,372. Aarp tax preparation sites If three or more children lived with you in the United States and your earned income and adjusted gross income were each less than $46,227 ($51,567 if married filing jointly), your credit could be as much as $6,044. Aarp tax preparation sites If you do not have a qualifying child and your earned income and adjusted gross income were each less than $14,340 ($19,680 if married filing jointly), your credit could be as much as $487. Aarp tax preparation sites You cannot claim the earned income credit if your filing status is married filing separately. Aarp tax preparation sites    You and your spouse (if filing a joint return) and any qualifying child must have valid SSNs to claim this credit. Aarp tax preparation sites You cannot claim the credit using an ITIN. Aarp tax preparation sites If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Aarp tax preparation sites An example of a federally funded benefit is Medicaid. Aarp tax preparation sites If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Aarp tax preparation sites Other information. Aarp tax preparation sites   There are other eligibility rules that are not discussed here. Aarp tax preparation sites For more information, get Publication 596, Earned Income Credit. Aarp tax preparation sites Nonresident Aliens You can claim some of the same credits that resident aliens can claim. Aarp tax preparation sites You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income. Aarp tax preparation sites Credits Credits are allowed only if you receive effectively connected income. Aarp tax preparation sites You may be able to claim some of the following credits. Aarp tax preparation sites Foreign tax credit. Aarp tax preparation sites   If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U. Aarp tax preparation sites S. Aarp tax preparation sites possession on that income. Aarp tax preparation sites   If you do not have foreign source income effectively connected with a U. Aarp tax preparation sites S. Aarp tax preparation sites trade or business, you cannot claim credits against your U. Aarp tax preparation sites S. Aarp tax preparation sites tax for taxes paid or accrued to a foreign country or U. Aarp tax preparation sites S. Aarp tax preparation sites possession. Aarp tax preparation sites   You cannot take any credit for taxes imposed by a foreign country or U. Aarp tax preparation sites S. Aarp tax preparation sites possession on your U. Aarp tax preparation sites S. Aarp tax preparation sites source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. Aarp tax preparation sites   If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. Aarp tax preparation sites See Publication 514 for more information. Aarp tax preparation sites Child and dependent care credit. Aarp tax preparation sites   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Aarp tax preparation sites Generally, you must be able to claim an exemption for your dependent. Aarp tax preparation sites   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). Aarp tax preparation sites   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. Aarp tax preparation sites Earned income generally means wages, salaries, and professional fees for personal services performed. Aarp tax preparation sites   For more information, get Publication 503. Aarp tax preparation sites Education credits. Aarp tax preparation sites   If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Aarp tax preparation sites However, if you are married and choose to file a joint return with a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. Aarp tax preparation sites Retirement savings contributions credit. Aarp tax preparation sites   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Aarp tax preparation sites You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. Aarp tax preparation sites Use Form 8880 to figure the credit. Aarp tax preparation sites For more information, see Publication 590. Aarp tax preparation sites Child tax credit. Aarp tax preparation sites   You may be able to take this credit if you have a qualifying child. Aarp tax preparation sites   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Aarp tax preparation sites Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Aarp tax preparation sites Is a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen, a U. Aarp tax preparation sites S. Aarp tax preparation sites national, or a resident alien. Aarp tax preparation sites Did not provide over half of his or her own support for 2013. Aarp tax preparation sites Lived with you more than half of 2013. Aarp tax preparation sites Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Aarp tax preparation sites Is claimed as a dependent on your return. Aarp tax preparation sites An adopted child is always treated as your own child. Aarp tax preparation sites An adopted child includes a child lawfully placed with you for legal adoption. Aarp tax preparation sites   See your form instructions for additional details. Aarp tax preparation sites Adoption credit. Aarp tax preparation sites   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Aarp tax preparation sites This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Aarp tax preparation sites To claim the adoption credit, file Form 8839 with your Form 1040NR. Aarp tax preparation sites   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). Aarp tax preparation sites Credit for prior year minimum tax. Aarp tax preparation sites   If you paid alternative minimum tax in a prior year, get Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, to see if you qualify for this credit. Aarp tax preparation sites Earned income credit. Aarp tax preparation sites   If you are a nonresident alien for any part of the tax year, you generally cannot get the earned income credit. Aarp tax preparation sites However, if you are married and choose to file a joint return with a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or resident spouse as discussed in chapter 1, you may be eligible for the credit. Aarp tax preparation sites    You, your spouse, and any qualifying child must have valid SSNs to claim this credit. Aarp tax preparation sites You cannot claim the credit using an ITIN. Aarp tax preparation sites If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Aarp tax preparation sites An example of a federally funded benefit is Medicaid. Aarp tax preparation sites If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Aarp tax preparation sites   See Publication 596 for more information on the credit. Aarp tax preparation sites Tax Withheld You can claim the tax withheld during the year as a payment against your U. Aarp tax preparation sites S. Aarp tax preparation sites tax. Aarp tax preparation sites You claim it on line 61 of Form 1040NR or on line 18 of Form 1040NR-EZ. Aarp tax preparation sites The tax withheld reduces any tax you owe with Form 1040NR or Form 1040NR-EZ. Aarp tax preparation sites Withholding from wages. Aarp tax preparation sites   Any federal income tax withheld from your wages during the tax year while you were a nonresident alien is allowed as a payment against your U. Aarp tax preparation sites S. Aarp tax preparation sites income tax liability for the same year. Aarp tax preparation sites You can claim the income tax withheld whether or not you were engaged in a trade or business in the United States during the year, and whether or not the wages (or any other income) were connected with a trade or business in the United States. Aarp tax preparation sites Excess social security tax withheld. Aarp tax preparation sites   If you have two or more employers, you may be able to claim a credit against your U. Aarp tax preparation sites S. Aarp tax preparation sites income tax liability for social security tax withheld in excess of the maximum required. Aarp tax preparation sites See Social Security and Medicare Taxes in chapter 8 for more information. Aarp tax preparation sites Additional Medicare Tax. Aarp tax preparation sites   Your employer is responsible for withholding the 0. Aarp tax preparation sites 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. Aarp tax preparation sites If you do not owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959. Aarp tax preparation sites Tax paid on undistributed long-term capital gains. Aarp tax preparation sites   If you are a shareholder in a mutual fund (or other regulated investment company) or real estate investment trust, you can claim a credit for your share of any taxes paid by the company on its undistributed long-term capital gains. Aarp tax preparation sites You will receive information on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which you must attach to your return. Aarp tax preparation sites Tax withheld at the source. Aarp tax preparation sites   You can claim as a payment any tax withheld at the source on investment and other fixed or determinable annual or periodic income paid to you. Aarp tax preparation sites Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income. Aarp tax preparation sites Wage or salary payments can be fixed or determinable income to you, but usually are subject to withholding as discussed above. Aarp tax preparation sites Taxes on fixed or determinable income are withheld at a 30% rate or at a lower treaty rate. Aarp tax preparation sites Tax withheld on partnership income. Aarp tax preparation sites   If you are a foreign partner in a partnership, the partnership will withhold tax on your share of effectively connected taxable income from the partnership. Aarp tax preparation sites The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Aarp tax preparation sites A partnership that is publicly traded may withhold on your actual distributions of effectively connected income. Aarp tax preparation sites In this case, the partnership will give you a statement on Form 1042-S. Aarp tax preparation sites Claim the tax withheld as a payment on line 61b or 61d of Form 1040NR, as appropriate. Aarp tax preparation sites Claiming tax withheld on your return. Aarp tax preparation sites   When you fill out your tax return, take extra care to enter the correct amount of any tax withheld shown on your information documents. Aarp tax preparation sites The following table lists some of the more common information documents and shows where to find the amount of tax withheld. Aarp tax preparation sites Form number Location  of tax  withheld RRB-1042S Box 12 SSA-1042S Box 9 W-2 Box 2 W-2c Box 2 1042-S Box 9 8805 Line 10 8288-A Box 2 Bona Fide Residents of American Samoa or Puerto Rico If you are a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you generally are taxed the same as resident aliens. Aarp tax preparation sites You should file Form 1040 and report all income from sources both in and outside the United States. Aarp tax preparation sites However, you can exclude the income discussed in the following paragraphs. Aarp tax preparation sites For tax purposes other than reporting income, however, you will be treated as a nonresident alien. Aarp tax preparation sites 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. Aarp tax preparation sites There are also limits on what deductions and credits are allowed. Aarp tax preparation sites See Nonresident Aliens under Deductions , Itemized Deductions , and Tax Credits and Payments in this chapter. Aarp tax preparation sites Residents of Puerto Rico. Aarp tax preparation sites   If you are a bona fide resident of Puerto Rico for the entire year, you can exclude from gross income all income from sources in Puerto Rico (other than amounts for services performed as an employee of the United States or any of its agencies). Aarp tax preparation sites   If you report income on a calendar year basis and you do not have wages subject to withholding, file your return and pay your tax by June 15. Aarp tax preparation sites You must also make your first payment of estimated tax by June 15. Aarp tax preparation sites You cannot file a joint income tax return or make joint payments of estimated tax. Aarp tax preparation sites However, if you are married to a U. Aarp tax preparation sites S. Aarp tax preparation sites citizen or resident, see Nonresident Spouse Treated as a Resident in chapter 1. Aarp tax preparation sites   If you earn wages subject to withholding, your U. Aarp tax preparation sites S. Aarp tax preparation sites income tax return is due by April 15. Aarp tax preparation sites Your first payment of estimated tax is also due by April 15. Aarp tax preparation sites For information on withholding and estimated tax, see chapter 8 . Aarp tax preparation sites Residents of American Samoa. Aarp tax preparation sites   If you are a bona fide resident of American Samoa for the entire year, you can exclude from gross income all income from sources in American Samoa (other than amounts for services performed as an employee of the U. Aarp tax preparation sites S. Aarp tax preparation sites government or any of its agencies). Aarp tax preparation sites An employee of the American Samoan government is not considered an employee of the U. Aarp tax preparation sites S. Aarp tax preparation sites government or any of its agencies for purposes of the exclusion. Aarp tax preparation sites For more information about this exclusion, get Form 4563 and Publication 570, Tax Guide for Individuals With Income From U. Aarp tax preparation sites S. Aarp tax preparation sites Possessions. Aarp tax preparation sites Prev  Up  Next   Home   More Online Publications
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The Aarp Tax Preparation Sites

Aarp tax preparation sites It's easy, accurate and fast. So why would you file your taxes any other way? Aarp tax preparation sites Old fashioned paper tax forms have been around for decades, but it might be time for them to go the way of the dodo. Who wants to wait for weeks to get their check in the mail when you can just efile your tax return electronically with the IRS and start enjoying your refund in as little as 7 days. Aarp tax preparation sites If you consider the money the IRS holds on to while you wait for your refund as an interest free loan, then you’ll realize that you are losing money. No one other than the IRS can get an interest free loan and that doesn’t seem fair, does it? Enter the internet age. Commercial companies have been moving online for years now - when was the last time you've mailed a check or received a paper statement from your bank? Now, even the government sites are starting to get with the program and are offering quick and easy efile to everyone. Here are a few reasons why I switched to efile; maybe it’s time you do to!