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Did Not File 2012 Taxes

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Did Not File 2012 Taxes

Did not file 2012 taxes Publication 970 - Additional Material Table of Contents AppendicesAppendix A. Did not file 2012 taxes Illustrated Example of Education Credits Glossary Appendices The following appendices are provided to help you claim the education benefits that will give you the lowest tax. Did not file 2012 taxes Appendix A—An illustrated example of education credits, including a filled-in Form 8863 showing how to claim both the American opportunity credit and lifetime learning credit for 2013. Did not file 2012 taxes Appendix B—A chart summarizing some of the major differences between the education tax benefits discussed in this publication. Did not file 2012 taxes It is intended only as a guide. Did not file 2012 taxes Look in this publication for more complete information. Did not file 2012 taxes   Appendix A. Did not file 2012 taxes Illustrated Example of Education Credits Dave and Valerie Jones are married and on their 2013 joint tax return they claim exemptions for their two dependent children, Sean (age 21, social security number: 000-00-0001) and Carey (age 18, social security number: 000–00–0002). Did not file 2012 taxes Their modified adjusted gross income (MAGI) on Form 1040, line 38 is $110,000. Did not file 2012 taxes Because Dave and Valerie have unusually high itemized deductions, their taxable income is $10,000 and their tax before credits is $1,000. Did not file 2012 taxes Sean enrolled as a full-time graduate student in August 2013 at California State College. Did not file 2012 taxes He graduated with his bachelor's degree in 2012 and did not attend school from January 2013 through July 2013. Did not file 2012 taxes His parents claimed the Hope Scholarship Credit for Sean for 2008 and the American opportunity credit for Sean for 2010, 2011, and 2012. Did not file 2012 taxes Carey enrolled full time as a freshman at the same college in January 2013 to begin working on her bachelor's degree. Did not file 2012 taxes In 2013, Dave and Valerie paid $7,000 in tuition for Sean and $8,500 in tuition for Carey. Did not file 2012 taxes California State College issued two Forms 1098-T, one for Sean and one for Carey, and sent them to the Joneses' residence. Did not file 2012 taxes California State College reports amounts billed in 2013 instead of amounts paid during 2013. Did not file 2012 taxes In completing Form 8863, the Joneses use the amounts they paid. Did not file 2012 taxes Neither Sean nor Carey has been convicted of a felony for possession or distribution of a controlled substance before the end of 2013. Did not file 2012 taxes Dave and Valerie figure their education credits by completing Form 8863. Did not file 2012 taxes They begin Form 8863 on page 2 before completing Part I on page 1. Did not file 2012 taxes Because the Joneses have two eligible students, they will complete page 2 twice, once for their son, Sean, and once for their daughter, Carey. Did not file 2012 taxes The Joneses decide to complete Part III for Carey first, as shown later. Did not file 2012 taxes They carry over the amount of $2,500 entered on Part III, line 30, to Part I, line 1. Did not file 2012 taxes The Joneses complete a separate Part III for their son Sean. Did not file 2012 taxes They check the “Yes” box on line 23, determine that Sean is not eligible for the American opportunity credit, and go to line 31 as instructed. Did not file 2012 taxes They figure their line 31 adjusted qualified education expenses for Sean to be $7,000. Did not file 2012 taxes Once they have completed Part III for each student, they figure their credits. Did not file 2012 taxes The Joneses figure their refundable American opportunity credit of $1,000 by completing Form 8863, Part I, lines 1 through 8. Did not file 2012 taxes They enter the amount from line 8, $1,000, on line 66 of their Form 1040. Did not file 2012 taxes The Joneses enter $7,000 on Part II, line 10, of Form 8863 and figure their tentative lifetime learning credit for 2013 to be $1,400 (line 12). Did not file 2012 taxes They cannot claim the full amount because their MAGI of $110,000 is greater than $107,000. Did not file 2012 taxes They enter the reduced amount of $1,190 (figured on Part II, line 18) on the Credit Limit Worksheet, line 1. Did not file 2012 taxes The $1,190 is added to their nonrefundable American opportunity credit ($1,500 on line 2 of the Credit Limit Worksheet) for a total nonrefundable credit of $2,690. Did not file 2012 taxes The Joneses enter $1,000 on line 7 of the Credit Limit Worksheet, which is the smaller of their tax from line 46 of their Form 1040 (which is $1,000) or the $2,690 on line 3 of the Credit Limit Worksheet. Did not file 2012 taxes They enter $1,000 on line 19, Part II of Form 8863 and on line 49 of Form 1040. Did not file 2012 taxes This image is too large to be displayed in the current screen. Did not file 2012 taxes Please click the link to view the image. Did not file 2012 taxes Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Did not file 2012 taxes Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 8,500 2. Did not file 2012 taxes Less adjustments:     a. Did not file 2012 taxes Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Did not file 2012 taxes Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Did not file 2012 taxes Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Did not file 2012 taxes Total adjustments (add lines 2a, 2b, and 2c) 0 4. Did not file 2012 taxes Adjusted qualified education expenses. Did not file 2012 taxes Subtract line 3 from line 1. Did not file 2012 taxes If zero or less, enter -0- 8,500 This image is too large to be displayed in the current screen. Did not file 2012 taxes Please click the link to view the image. Did not file 2012 taxes Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Did not file 2012 taxes Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 7,000 2. Did not file 2012 taxes Less adjustments:     a. Did not file 2012 taxes Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Did not file 2012 taxes Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Did not file 2012 taxes Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Did not file 2012 taxes Total adjustments (add lines 2a, 2b, and 2c) 0 4. Did not file 2012 taxes Adjusted qualified education expenses. Did not file 2012 taxes Subtract line 3 from line 1. Did not file 2012 taxes If zero or less, enter -0- 7,000 Credit Limit Worksheet (Form 8863 instructions) Nonrefundable Credit Worksheet 1. Did not file 2012 taxes Enter the amount from Form 8863, line 18 1. Did not file 2012 taxes 1,190 2. Did not file 2012 taxes Enter the amount from Form 8863, line 9 2. Did not file 2012 taxes 1,500 3. Did not file 2012 taxes Add lines 1 and 2 3. Did not file 2012 taxes 2,690 4. Did not file 2012 taxes Enter the amount from: Form 1040, line 46; or Form 1040A, line 28 4. Did not file 2012 taxes 1,000 5. Did not file 2012 taxes Enter the amount from either: Form 1040, lines 47 and 48, and the amount from Schedule R included on Form 1040, line 53; or Form 1040A, lines 29 and 30 5. Did not file 2012 taxes 0 6. Did not file 2012 taxes Subtract line 5 from line 4 6. Did not file 2012 taxes 1,000 7. Did not file 2012 taxes   Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7. Did not file 2012 taxes 1,000 This image is too large to be displayed in the current screen. Did not file 2012 taxes Please click the link to view the image. Did not file 2012 taxes Form 8863 for Dave and Valerie Jones This image is too large to be displayed in the current screen. Did not file 2012 taxes Please click the link to view the image. Did not file 2012 taxes Carey Jones page 2 This image is too large to be displayed in the current screen. Did not file 2012 taxes Please click the link to view the image. Did not file 2012 taxes Filled-in Form 8863 Jones page 2 Appendix B. Did not file 2012 taxes Highlights of Education Tax Benefits for Tax Year 2013 This chart highlights some differences among the benefits discussed in this publication. Did not file 2012 taxes See the text for definitions and details. Did not file 2012 taxes Do not rely on this chart alone. Did not file 2012 taxes    Caution:You generally cannot claim more than one benefit for the same education expense. Did not file 2012 taxes   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What is your  benefit? Amounts received may not be taxable   Credits can reduce the amount of tax you have to pay. Did not file 2012 taxes    40% of the credit may be refundable (limited to $1,000 per student). Did not file 2012 taxes Credits can reduce amount of tax you must pay Can deduct interest paid Can deduct expenses Earnings not  taxed Earnings not taxed No 10%  additional tax on early distribution Interest not taxed Employer benefits not taxed Can deduct expenses What is the annual limit? None $2,500 credit per student $2,000 credit per tax return     $2,500 deduction $4,000 deduction $2,000 contribution per beneficiary None Amount of qualified  education expenses Amount of qualified  education expenses $5,250 exclusion Amount of qualifying work-related education expenses What expenses  qualify besides  tuition and required enrollment fees? Course-related expenses such as fees, books, supplies, and equipment Course-related books, supplies, and equipment Amounts paid for required books, etc. Did not file 2012 taxes , that must be paid to the educational institution, etc. Did not file 2012 taxes , are required fees Books Supplies Equipment  Room & board  Transportation  Other necessary expenses  None Books Supplies Equipment  Expenses for special needs services  Payments to QTP  Higher education: Room & board if  at least half-time  student  Elem/sec (K–12) education: Tutoring Room & board Uniforms Transportation Computer  access Supplementary expenses Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Payments to Coverdell ESA  Payments to QTP Books Supplies Equipment Transportation  Travel  Other necessary expenses   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What education qualifies? Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate  Courses to acquire or improve job skills    Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Required by employer or law to keep present job, salary, status  Maintain or improve job skills What are some of the other  conditions that  apply? Must be in degree or vocational program  Payment of tuition and required fees must be allowed under the grant Can be claimed for only 4 tax years (which includes years Hope Scholarship Credit claimed)  Must be enrolled at least half-time in degree program  No felony drug conviction(s)  Must not have completed first 4 years of postsecondary education before end of preceding tax year. Did not file 2012 taxes   No other conditions Must have been at least half-time  student in degree program Cannot claim both deduction & education credit for same student in same year Assets must be distributed at age 30 unless special  needs beneficiary No other conditions No other conditions Applies only to qualified series  EE bonds issued after 1989 or series I bonds No other conditions Cannot be to  meet minimum educational requirements of present trade/business  Cannot qualify  you for new trade/business   In what income  range do benefits  phase out? No phaseout $80,000 – $90,000  $160,000 – $180,000 for joint returns $53,000 – $63,000  $107,000 – $127,000 for joint returns $60,000 – $75,000  $125,000 –  $155,000 for  joint returns  $60,000 – $80,000  $130,000 –  $160,000 for  joint returns  $95,000 – $110,000  $190,000 – $220,000 for  joint returns No phaseout No phaseout   No phaseout No phaseout † Any nontaxable distribution is limited to the amount that does not exceed qualified education expenses. Did not file 2012 taxes Glossary The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. Did not file 2012 taxes For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable. Did not file 2012 taxes For each term listed below that has more than one definition, the definition for each education benefit is listed. Did not file 2012 taxes Academic period:   A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Did not file 2012 taxes If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Did not file 2012 taxes Adjusted qualified education expenses (AQEE):    Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. Did not file 2012 taxes They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. Did not file 2012 taxes For information on a specific benefit, see the appropriate chapter in this publication. Did not file 2012 taxes Candidate for a degree:   A student who meets either of the following requirements. Did not file 2012 taxes Attends a primary or secondary school or pursues a degree at a college or university, or Attends an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Did not file 2012 taxes Designated beneficiary:   The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan. Did not file 2012 taxes Eligible educational institution:    American opportunity credit. Did not file 2012 taxes Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Did not file 2012 taxes It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Did not file 2012 taxes Coverdell education savings account (ESA). Did not file 2012 taxes Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Did not file 2012 taxes It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Did not file 2012 taxes Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Did not file 2012 taxes Education savings bond program. Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes IRA, early distributions from. Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes Lifetime learning credit. Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes Qualified tuition program (QTP). Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes Scholarships and fellowships. Did not file 2012 taxes An institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Did not file 2012 taxes Student loan, cancellation of. Did not file 2012 taxes Same as Scholarships and fellowships in this category. Did not file 2012 taxes Student loan interest deduction. Did not file 2012 taxes Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Did not file 2012 taxes It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Did not file 2012 taxes Also included is an institution that conducts an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Did not file 2012 taxes Tuition and fees deduction. Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes Eligible student:    American opportunity credit. Did not file 2012 taxes A student who meets all of the following requirements for the tax year for which the credit is being determined. Did not file 2012 taxes Did not have expenses that were used to figure an American opportunity or Hope Scholarship Credit in any 4 earlier tax years. Did not file 2012 taxes Had not completed the first 4 years of postsecondary education (generally the freshman through senior years). Did not file 2012 taxes For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Did not file 2012 taxes Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. Did not file 2012 taxes Lifetime learning credit. Did not file 2012 taxes A student who is enrolled in one or more courses at an eligible educational institution. Did not file 2012 taxes Student loan interest deduction. Did not file 2012 taxes A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential at an eligible educational institution. Did not file 2012 taxes Tuition and fees deduction. Did not file 2012 taxes A student who is enrolled in one or more courses at an eligible educational institution. Did not file 2012 taxes Half-time student:   A student who is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Did not file 2012 taxes Modified adjusted gross income (MAGI):    American opportunity credit. Did not file 2012 taxes Adjusted gross income (AGI) as figured on the federal income tax return, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Did not file 2012 taxes Coverdell education savings account (ESA). Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes Education savings bond program. Did not file 2012 taxes Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Did not file 2012 taxes Lifetime learning credit. Did not file 2012 taxes Same as American opportunity credit in this category. Did not file 2012 taxes Student loan interest deduction. Did not file 2012 taxes Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Did not file 2012 taxes Tuition and fees deduction. Did not file 2012 taxes Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Did not file 2012 taxes Phaseout:   The amount of credit or deduction allowed is reduced when modified adjusted gross income (MAGI) is greater than a specified amount of income. Did not file 2012 taxes Qualified education expenses:   See pertinent chapter for specific items. Did not file 2012 taxes    American opportunity credit. Did not file 2012 taxes Tuition and certain related expenses (including student activity fees) required for enrollment or attendance at an eligible educational institution. Did not file 2012 taxes Books, supplies, and equipment needed for a course of study are included even if not purchased from the educational institution. Did not file 2012 taxes Does not include expenses for room and board. Did not file 2012 taxes Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program. Did not file 2012 taxes Coverdell education savings account (ESA). Did not file 2012 taxes Expenses related to or required for enrollment or attendance of the designated beneficiary at an eligible elementary, secondary, or postsecondary school. Did not file 2012 taxes Many specialized expenses included for K–12. Did not file 2012 taxes Also includes expenses for special needs services and contribution to qualified tuition program (QTP). Did not file 2012 taxes Education savings bond program. Did not file 2012 taxes Tuition and fees required to enroll at or attend an eligible educational institution. Did not file 2012 taxes Also includes contributions to a qualified tuition program (QTP) or Coverdell education savings account (ESA). Did not file 2012 taxes Does not include expenses for room and board. Did not file 2012 taxes Does not include expenses for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Did not file 2012 taxes IRA, early distributions from. Did not file 2012 taxes Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Did not file 2012 taxes Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. Did not file 2012 taxes Lifetime learning credit. Did not file 2012 taxes Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Did not file 2012 taxes Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Did not file 2012 taxes Does not include expenses for room and board. Did not file 2012 taxes Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program, unless taken by the student to acquire or improve job skills. Did not file 2012 taxes Qualified tuition program (QTP). Did not file 2012 taxes Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Did not file 2012 taxes Includes expenses for special needs services and computer access. Did not file 2012 taxes Scholarships and fellowships. Did not file 2012 taxes Expenses for tuition and fees required to enroll at or attend an eligible educational institution, and course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Did not file 2012 taxes Course-related items must be required of all students in the course of instruction. Did not file 2012 taxes Student loan interest deduction. Did not file 2012 taxes Total costs of attending an eligible educational institution, including graduate school (however, limitations may apply to the cost of room and board allowed). Did not file 2012 taxes Tuition and fees deduction. Did not file 2012 taxes Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Did not file 2012 taxes Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Did not file 2012 taxes Recapture:   To include as income on your current year's return an amount allowed as a deduction in a prior year. Did not file 2012 taxes To include as tax on your current year's return an amount allowed as a credit in a prior year. Did not file 2012 taxes Rollover:   A tax-free distribution to you of cash or other assets from a tax-favored plan that you contribute to another tax-favored plan. Did not file 2012 taxes Transfer:   A movement of funds in a tax-favored plan from one trustee directly to another, either at your request or at the trustee's request. Did not file 2012 taxes Prev  Up  Next   Home   More Online Publications
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Did not file 2012 taxes 8. Did not file 2012 taxes   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. Did not file 2012 taxes Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. Did not file 2012 taxes Introduction This chapter discusses how to pay your U. Did not file 2012 taxes S. Did not file 2012 taxes income tax as you earn or receive income during the year. Did not file 2012 taxes In general, the federal income tax is a pay as you go tax. Did not file 2012 taxes There are two ways to pay as you go. Did not file 2012 taxes Withholding. Did not file 2012 taxes If you are an employee, your employer probably withholds income tax from your pay. Did not file 2012 taxes Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. Did not file 2012 taxes In each case, the amount withheld is paid to the U. Did not file 2012 taxes S. Did not file 2012 taxes Treasury in your name. Did not file 2012 taxes Estimated tax. Did not file 2012 taxes If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Did not file 2012 taxes People who are in business for themselves generally will have to pay their tax this way. Did not file 2012 taxes You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. Did not file 2012 taxes Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Did not file 2012 taxes Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. Did not file 2012 taxes Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. Did not file 2012 taxes S. Did not file 2012 taxes Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. Did not file 2012 taxes S. Did not file 2012 taxes Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. Did not file 2012 taxes S. Did not file 2012 taxes Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. Did not file 2012 taxes Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. Did not file 2012 taxes If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. Did not file 2012 taxes If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. Did not file 2012 taxes If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. Did not file 2012 taxes However, if the income is effectively connected with a U. Did not file 2012 taxes S. Did not file 2012 taxes trade or business, file Form W-8ECI instead. Did not file 2012 taxes Withholding From Compensation The following discussion generally applies only to nonresident aliens. Did not file 2012 taxes Tax is withheld from resident aliens in the same manner as U. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. Did not file 2012 taxes Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. Did not file 2012 taxes Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). Did not file 2012 taxes These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). Did not file 2012 taxes Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. Did not file 2012 taxes This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. Did not file 2012 taxes Enter your social security number (SSN) on line 2. Did not file 2012 taxes Do not enter an individual taxpayer identification number (ITIN). Did not file 2012 taxes Check only “Single” marital status on line 3 (regardless of your actual marital status). Did not file 2012 taxes Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. Did not file 2012 taxes S. Did not file 2012 taxes national. Did not file 2012 taxes Write “Nonresident Alien” or “NRA” on the dotted line on line 6. Did not file 2012 taxes You can request additional withholding on line 6 at your option. Did not file 2012 taxes Do not claim “Exempt” withholding status on line 7. Did not file 2012 taxes A U. Did not file 2012 taxes S. Did not file 2012 taxes national is an individual who, although not a U. Did not file 2012 taxes S. Did not file 2012 taxes citizen, owes his or her allegiance to the United States. Did not file 2012 taxes U. Did not file 2012 taxes S. Did not file 2012 taxes nationals include American Samoans, and Northern Mariana Islanders who chose to become U. Did not file 2012 taxes S. Did not file 2012 taxes nationals instead of U. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. Did not file 2012 taxes S. Did not file 2012 taxes source scholarship or fellowship grant that is not a payment for services. Did not file 2012 taxes Students and business apprentices from India. Did not file 2012 taxes   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. Did not file 2012 taxes You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. Did not file 2012 taxes S. Did not file 2012 taxes taxpayer's 2013 return. Did not file 2012 taxes You may also claim an additional withholding allowance 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. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes Household employees. Did not file 2012 taxes   If you work as a household employee, your employer does not have to withhold income tax. Did not file 2012 taxes However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. Did not file 2012 taxes The agreement goes into effect when your employer accepts the agreement by beginning the withholding. Did not file 2012 taxes You or your employer may end the agreement by letting the other know in writing. Did not file 2012 taxes Agricultural workers. Did not file 2012 taxes   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. Did not file 2012 taxes However, your employer will withhold income tax only if you and your employer agree to withhold. Did not file 2012 taxes In that case, you must provide your employer with a properly completed Form W-4. Did not file 2012 taxes You can find more information about not having tax withheld at www. Did not file 2012 taxes irs. Did not file 2012 taxes gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Did not file 2012 taxes Wages Exempt From Withholding Wages that are exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes income tax under an income tax treaty are generally exempt from withholding. Did not file 2012 taxes For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. Did not file 2012 taxes Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands may be exempt from withholding. Did not file 2012 taxes The following paragraphs explain these exemptions. Did not file 2012 taxes Residents of Canada or Mexico engaged in transportation-related employment. Did not file 2012 taxes   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. Did not file 2012 taxes These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. Did not file 2012 taxes    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. Did not file 2012 taxes   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. Did not file 2012 taxes S. Did not file 2012 taxes citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. Did not file 2012 taxes   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. Did not file 2012 taxes Residents of American Samoa and Puerto Rico. Did not file 2012 taxes   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. Did not file 2012 taxes Residents of the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands. Did not file 2012 taxes   Nonresident aliens who are bona fide residents of the U. Did not file 2012 taxes S Virgin Islands are not subject to withholding of U. Did not file 2012 taxes S. Did not file 2012 taxes tax on income earned while temporarily employed in the United States. Did not file 2012 taxes This is because those persons pay their income tax to the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands. Did not file 2012 taxes To avoid having tax withheld on income earned in the United States, bona fide residents of the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands and expect to pay tax on all income to the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands. Did not file 2012 taxes Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. Did not file 2012 taxes You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. Did not file 2012 taxes You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. Did not file 2012 taxes Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. Did not file 2012 taxes S. Did not file 2012 taxes income tax. Did not file 2012 taxes Include them in taxable income. Did not file 2012 taxes In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. Did not file 2012 taxes Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. Did not file 2012 taxes However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. Did not file 2012 taxes An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. Did not file 2012 taxes You must agree to timely file an income tax return for the current tax year. Did not file 2012 taxes Central withholding agreements. Did not file 2012 taxes   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. Did not file 2012 taxes Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. Did not file 2012 taxes   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. Did not file 2012 taxes Either you or your authorized representative can file the form. Did not file 2012 taxes It should be sent to the IRS at least 45 days before the tour begins or the event occurs. Did not file 2012 taxes Exceptions will be considered on a case by case basis. Did not file 2012 taxes   For more information on the CWA program, go to www. Did not file 2012 taxes irs. Did not file 2012 taxes gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. Did not file 2012 taxes Final payment exemption. Did not file 2012 taxes   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. Did not file 2012 taxes This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. Did not file 2012 taxes To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. Did not file 2012 taxes A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. Did not file 2012 taxes Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Did not file 2012 taxes A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. Did not file 2012 taxes This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Did not file 2012 taxes A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. Did not file 2012 taxes The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. Did not file 2012 taxes The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. Did not file 2012 taxes Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. Did not file 2012 taxes A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. Did not file 2012 taxes   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. Did not file 2012 taxes Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. Did not file 2012 taxes   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. Did not file 2012 taxes You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. Did not file 2012 taxes Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). Did not file 2012 taxes To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. Did not file 2012 taxes S. Did not file 2012 taxes national and are not a resident of Canada, Mexico, or South Korea. Did not file 2012 taxes For purposes of 30% withholding, the exemption is prorated at $10. Did not file 2012 taxes 82 a day in 2014 for the period that labor or personal services are performed in the United States. Did not file 2012 taxes To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. Did not file 2012 taxes Example. Did not file 2012 taxes Eric Johannsen, who is a resident of Country X worked under a contract with a U. Did not file 2012 taxes S. Did not file 2012 taxes firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. Did not file 2012 taxes He earned $6,000 for the services performed (not considered wages) in the United States. Did not file 2012 taxes Eric is married and has three dependent children. Did not file 2012 taxes His wife is not employed and has no income subject to U. Did not file 2012 taxes S. Did not file 2012 taxes tax. Did not file 2012 taxes The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. Did not file 2012 taxes 82), and withholding at 30% is applied against the balance. Did not file 2012 taxes Thus, $1,475. Did not file 2012 taxes 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). Did not file 2012 taxes U. Did not file 2012 taxes S. Did not file 2012 taxes nationals or residents of Canada, Mexico, or South Korea. Did not file 2012 taxes   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. Did not file 2012 taxes However, if you are a U. Did not file 2012 taxes S. Did not file 2012 taxes national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes For the 30% (or lower treaty) rate withholding, you can take $10. Did not file 2012 taxes 82 per day for each allowable exemption in 2014. Did not file 2012 taxes If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. Did not file 2012 taxes However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . Did not file 2012 taxes Students and business apprentices from India. Did not file 2012 taxes   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Did not file 2012 taxes S. Did not file 2012 taxes taxpayer's 2014 return. Did not file 2012 taxes You are also allowed an exemption for each dependent 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. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. Did not file 2012 taxes 82 per day for each allowable exemption in 2014. Did not file 2012 taxes Refund of Taxes Withheld in Error Multi-level marketing. Did not file 2012 taxes   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. Did not file 2012 taxes You must also attach to the U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return or claim for refund supporting information that includes, but is not limited to, the following items. Did not file 2012 taxes A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. Did not file 2012 taxes A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. Did not file 2012 taxes S. Did not file 2012 taxes taxation. Did not file 2012 taxes A statement listing all the dates you entered and left the United States during the taxable year. Did not file 2012 taxes If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. Did not file 2012 taxes A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. Did not file 2012 taxes A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. Did not file 2012 taxes Any further relevant document or record supporting your claim that the taxes were withheld in error. Did not file 2012 taxes Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. Did not file 2012 taxes It also includes 85% of social security benefits paid to nonresident aliens. Did not file 2012 taxes Refund of taxes withheld in error on social security benefits paid to resident aliens. Did not file 2012 taxes   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. Did not file 2012 taxes For U. Did not file 2012 taxes S. Did not file 2012 taxes income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Did not file 2012 taxes See Green Card Test in chapter 1. Did not file 2012 taxes If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Did not file 2012 taxes SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Did not file 2012 taxes If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Did not file 2012 taxes You must also attach the following to your Form 1040 or 1040A. Did not file 2012 taxes A copy of Form SSA-1042S, Social Security Benefit Statement. Did not file 2012 taxes A copy of the “green card. Did not file 2012 taxes ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. Did not file 2012 taxes S. Did not file 2012 taxes lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Did not file 2012 taxes I am filing a U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return for the tax year as a resident alien reporting all of my worldwide income. Did not file 2012 taxes I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. Did not file 2012 taxes Other income not subject to withholding of 30% (or lower treaty) rate. Did not file 2012 taxes   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. Did not file 2012 taxes Income (other than compensation) that is effectively connected with your U. Did not file 2012 taxes S. Did not file 2012 taxes trade or business. Did not file 2012 taxes Income from real property that you choose to treat as effectively connected with a U. Did not file 2012 taxes S. Did not file 2012 taxes trade or business. Did not file 2012 taxes See Income From Real Property in chapter 4 for details about this choice. Did not file 2012 taxes   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. Did not file 2012 taxes Tax Withheld on Partnership Income If you are a foreign partner in a U. Did not file 2012 taxes S. Did not file 2012 taxes or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. Did not file 2012 taxes You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. Did not file 2012 taxes Generally, you must use Form 8804-C for this purpose. Did not file 2012 taxes See the Instructions for Form 8804-C for more information. Did not file 2012 taxes The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. Did not file 2012 taxes 6% for 2014). Did not file 2012 taxes However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. Did not file 2012 taxes Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. Did not file 2012 taxes Claim the tax withheld as a credit on your 2014 Form 1040NR. Did not file 2012 taxes The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Did not file 2012 taxes A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. Did not file 2012 taxes In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. Did not file 2012 taxes S. Did not file 2012 taxes Source Income Subject to Withholding. Did not file 2012 taxes Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. Did not file 2012 taxes See chapter 3. Did not file 2012 taxes If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. Did not file 2012 taxes S. Did not file 2012 taxes source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. Did not file 2012 taxes However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. Did not file 2012 taxes Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. Did not file 2012 taxes Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). Did not file 2012 taxes Use the following instructions instead of the Form W-4 instructions to complete the worksheet. Did not file 2012 taxes Line A. Did not file 2012 taxes   Enter the total of the following amounts on line A. Did not file 2012 taxes Personal exemption. Did not file 2012 taxes   Include the prorated part of your allowable personal exemption. Did not file 2012 taxes Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. Did not file 2012 taxes 82). Did not file 2012 taxes Expenses. Did not file 2012 taxes   Include expenses that will be deductible on your return. Did not file 2012 taxes These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. Did not file 2012 taxes They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. Did not file 2012 taxes Nontaxable grant or scholarship. Did not file 2012 taxes   Include the part of your grant or scholarship that is not taxable under U. Did not file 2012 taxes S. Did not file 2012 taxes law or under a tax treaty. Did not file 2012 taxes Line B. Did not file 2012 taxes   Enter -0- unless the following paragraph applies to you. Did not file 2012 taxes   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. Did not file 2012 taxes The standard deduction amount for 2013 is $6,100. Did not file 2012 taxes Lines C and D. Did not file 2012 taxes   Enter -0- on both lines unless the following paragraphs apply to you. Did not file 2012 taxes   If you are a resident of Canada, Mexico, South Korea, or a U. Did not file 2012 taxes S. Did not file 2012 taxes national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. Did not file 2012 taxes   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Did not file 2012 taxes S. Did not file 2012 taxes taxpayer's 2014 return. Did not file 2012 taxes You can also claim an additional amount 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. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes   Enter any additional amount for your spouse on line C. Did not file 2012 taxes Enter any additional amount for your dependents on line D. Did not file 2012 taxes Lines E, F, and G. Did not file 2012 taxes   No entries should be made on lines E, F, and G. Did not file 2012 taxes Line H. Did not file 2012 taxes   Add the amounts on lines A through D and enter the total on line H. Did not file 2012 taxes Form W-4. Did not file 2012 taxes   Complete lines 1 through 4 of Form W-4. Did not file 2012 taxes Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. Did not file 2012 taxes   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return to be allowed the exemptions and deductions you claimed on that form. Did not file 2012 taxes If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return for the previous year. Did not file 2012 taxes If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return when required. Did not file 2012 taxes After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. Did not file 2012 taxes The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. Did not file 2012 taxes You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. Did not file 2012 taxes Use this form to prepare your annual U. Did not file 2012 taxes S. Did not file 2012 taxes income tax return. Did not file 2012 taxes Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. Did not file 2012 taxes Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. Did not file 2012 taxes File Form W-8BEN for income that is not personal services income. Did not file 2012 taxes File Form 8233 for personal services income as discussed next. Did not file 2012 taxes Employees and independent contractors. Did not file 2012 taxes   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. Did not file 2012 taxes   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. Did not file 2012 taxes This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. Did not file 2012 taxes In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. Did not file 2012 taxes Students, teachers, and researchers. Did not file 2012 taxes   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. Did not file 2012 taxes For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. Did not file 2012 taxes   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. Did not file 2012 taxes Special events and promotions. Did not file 2012 taxes   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. Did not file 2012 taxes Form 13930 is used to request a reduction in withholding. Did not file 2012 taxes Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. Did not file 2012 taxes One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. Did not file 2012 taxes You will be required to pay U. Did not file 2012 taxes S. Did not file 2012 taxes tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. Did not file 2012 taxes For more details on treaty provisions that apply to compensation, see Publication 901. Did not file 2012 taxes Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. Did not file 2012 taxes S. Did not file 2012 taxes real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. Did not file 2012 taxes A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. Did not file 2012 taxes S. Did not file 2012 taxes real property interest by the shareholder is subject to withholding at 35%. Did not file 2012 taxes Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. Did not file 2012 taxes These rules are covered in Publication 515. Did not file 2012 taxes For information on the tax treatment of dispositions of U. Did not file 2012 taxes S. Did not file 2012 taxes real property interests, see Real Property Gain or Loss in chapter 4. Did not file 2012 taxes If you are a partner in a domestic partnership, and the partnership disposes of a U. Did not file 2012 taxes S. Did not file 2012 taxes real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. Did not file 2012 taxes Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. Did not file 2012 taxes S. Did not file 2012 taxes Source Income Subject to Withholding (in the case of a publicly traded partnership). Did not file 2012 taxes Withholding is not required in the following situations. Did not file 2012 taxes The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. Did not file 2012 taxes The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. Did not file 2012 taxes However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. Did not file 2012 taxes The property disposed of is an interest in a U. Did not file 2012 taxes S. Did not file 2012 taxes corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. Did not file 2012 taxes S. Did not file 2012 taxes real property interest. Did not file 2012 taxes You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. Did not file 2012 taxes S. Did not file 2012 taxes taxpayer identification number, and home address. Did not file 2012 taxes You can give the certification to a qualified substitute. Did not file 2012 taxes The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. Did not file 2012 taxes For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. Did not file 2012 taxes The buyer receives a withholding certificate from the Internal Revenue Service. Did not file 2012 taxes You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. Did not file 2012 taxes S. Did not file 2012 taxes tax treaty. Did not file 2012 taxes The buyer must file a copy of the notice with the Ogden Service Center, P. Did not file 2012 taxes O. Did not file 2012 taxes Box 409101, Ogden, UT 84409. Did not file 2012 taxes You must verify the notice as true and sign it under penalties of perjury. Did not file 2012 taxes The notice must contain the following information. Did not file 2012 taxes A statement that the notice is a notice of nonrecognition under regulation section 1. Did not file 2012 taxes 1445-2(d)(2). Did not file 2012 taxes Your name, taxpayer identification number, and home address. Did not file 2012 taxes A statement that you are not required to recognize any gain or loss on the transfer. Did not file 2012 taxes A brief description of the transfer. Did not file 2012 taxes A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. Did not file 2012 taxes You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. Did not file 2012 taxes Instead, a withholding certificate (described next) must be obtained. Did not file 2012 taxes The amount you realize on the transfer of a U. Did not file 2012 taxes S. Did not file 2012 taxes real property interest is zero. Did not file 2012 taxes The property is acquired by the United States, a U. Did not file 2012 taxes S. Did not file 2012 taxes state or possession, a political subdivision, or the District of Columbia. Did not file 2012 taxes The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. Did not file 2012 taxes S. Did not file 2012 taxes real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. Did not file 2012 taxes For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. Did not file 2012 taxes See Wash sale under Real Property Gain or Loss in chapter 4. Did not file 2012 taxes The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. Did not file 2012 taxes This also applies to the qualified substitute's statement under (4). Did not file 2012 taxes Withholding certificates. Did not file 2012 taxes   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. Did not file 2012 taxes Either you or the buyer can request a withholding certificate. Did not file 2012 taxes   A withholding certificate can be issued due to any of the following. Did not file 2012 taxes The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. Did not file 2012 taxes All of your realized gain is exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes tax. Did not file 2012 taxes You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. Did not file 2012 taxes   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. Did not file 2012 taxes Credit for tax withheld. Did not file 2012 taxes   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. Did not file 2012 taxes S. Did not file 2012 taxes Withholding Tax Return for Dispositions by Foreign Persons of U. Did not file 2012 taxes S. Did not file 2012 taxes Real Property Interests. Did not file 2012 taxes This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Did not file 2012 taxes S. Did not file 2012 taxes Real Property Interests. Did not file 2012 taxes Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). Did not file 2012 taxes You must file Copy B with your tax return to take credit for the tax withheld. Did not file 2012 taxes   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. Did not file 2012 taxes The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. Did not file 2012 taxes When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. Did not file 2012 taxes Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. Did not file 2012 taxes Your payments of these taxes contribute to your coverage under the U. Did not file 2012 taxes S. Did not file 2012 taxes social security system. Did not file 2012 taxes Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. Did not file 2012 taxes In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. Did not file 2012 taxes All taxable wages are subject to Medicare tax. Did not file 2012 taxes Your employer deducts these taxes from each wage payment. Did not file 2012 taxes Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. Did not file 2012 taxes You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. Did not file 2012 taxes 40. Did not file 2012 taxes Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. Did not file 2012 taxes If any one employer deducted more than $7,049. Did not file 2012 taxes 40, you cannot claim a credit for that amount. Did not file 2012 taxes Ask your employer to refund the excess. Did not file 2012 taxes If your employer does not refund the excess, you can file a claim for refund using Form 843. Did not file 2012 taxes In general, U. Did not file 2012 taxes S. Did not file 2012 taxes social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. Did not file 2012 taxes In limited situations, these taxes apply to wages for services performed outside the United States. Did not file 2012 taxes Your employer should be able to tell you if social security and Medicare taxes apply to your wages. Did not file 2012 taxes You cannot make voluntary payments if no taxes are due. Did not file 2012 taxes Additional Medicare Tax. Did not file 2012 taxes   Beginning in 2013, in addition to the Medicare tax, a 0. Did not file 2012 taxes 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. Did not file 2012 taxes   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. Did not file 2012 taxes Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Did not file 2012 taxes   Your employer is responsible for withholding the 0. Did not file 2012 taxes 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. Did not file 2012 taxes If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. Did not file 2012 taxes   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Did not file 2012 taxes    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Did not file 2012 taxes For more information on Additional Medicare Tax, go to IRS. Did not file 2012 taxes gov and enter “Additional Medicare Tax” in the search box. Did not file 2012 taxes   Self-employed individuals may also be required to pay Additional Medicare Tax. Did not file 2012 taxes See Self-Employment Tax , later. Did not file 2012 taxes Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. Did not file 2012 taxes This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. Did not file 2012 taxes These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. Did not file 2012 taxes Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. Did not file 2012 taxes Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. Did not file 2012 taxes Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. Did not file 2012 taxes In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. Did not file 2012 taxes Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. Did not file 2012 taxes Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. Did not file 2012 taxes The U. Did not file 2012 taxes S. Did not file 2012 taxes Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. Did not file 2012 taxes S. Did not file 2012 taxes resident. Did not file 2012 taxes On-campus work means work performed on the school's premises. Did not file 2012 taxes On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. Did not file 2012 taxes On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. Did not file 2012 taxes Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. Did not file 2012 taxes If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Did not file 2012 taxes Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. Did not file 2012 taxes Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. Did not file 2012 taxes If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Did not file 2012 taxes Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. Did not file 2012 taxes The employer must be the petitioner through whom the alien obtained the “Q” visa. Did not file 2012 taxes Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. Did not file 2012 taxes Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Did not file 2012 taxes If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Did not file 2012 taxes Attach the following items to Form 843. Did not file 2012 taxes A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. Did not file 2012 taxes A copy of your visa. Did not file 2012 taxes Form I-94 (or other documentation showing your dates of arrival or departure). Did not file 2012 taxes If you have an F-1 visa, documentation showing permission to work in the U. Did not file 2012 taxes S. Did not file 2012 taxes If you have a J-1 visa, documentation showing permission to work in the U. Did not file 2012 taxes S. Did not file 2012 taxes If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. Did not file 2012 taxes S. Did not file 2012 taxes A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. Did not file 2012 taxes If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. Did not file 2012 taxes If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. Did not file 2012 taxes File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. Did not file 2012 taxes Do not use Form 843 to request a refund of Additional Medicare Tax. Did not file 2012 taxes If Additional Medicare Tax was withheld from your pay in error, 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 with Form 1040 or 1040NR. Did not file 2012 taxes If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. Did not file 2012 taxes S. Did not file 2012 taxes Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. Did not file 2012 taxes See the Instructions for Form 1040X. Did not file 2012 taxes Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. Did not file 2012 taxes You can find more information about not having tax withheld at www. Did not file 2012 taxes irs. Did not file 2012 taxes gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Did not file 2012 taxes Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. Did not file 2012 taxes Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. Did not file 2012 taxes S. Did not file 2012 taxes social security system. Did not file 2012 taxes Residents of the U. Did not file 2012 taxes S. Did not file 2012 taxes Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. Did not file 2012 taxes S. Did not file 2012 taxes residents for this purpose and are subject to the self-employment tax. Did not file 2012 taxes Resident aliens must pay self-employment tax under the same rules that apply to U. Did not file 2012 taxes S. Did not file 2012 taxes citizens. Did not file 2012 taxes However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. Did not file 2012 taxes Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. Did not file 2012 taxes Example. Did not file 2012 taxes Bill Jones is an author engaged in the business of writing books. Did not file 2012 taxes Bill had several books published in a foreign country while he was a citizen and resident of that country. Did not file 2012 taxes During 2013, Bill entered the United States as a resident alien. Did not file 2012 taxes After becoming a U. Did not file 2012 taxes S. Did not file 2012 taxes resident, he continued to receive royalties from his foreign publisher. Did not file 2012 taxes Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). Did not file 2012 taxes Bill's 2013 self-employment income includes the royalties received after he became a U. Did not file 2012 taxes S. Did not file 2012 taxes resident even though the books were published while he was a nonresident alien. Did not file 2012 taxes This royalty income is subject to self-employment tax. Did not file 2012 taxes Reporting self-employment tax. Did not file 2012 taxes   Use Schedule SE (Form 1040) to report and figure your self-employment tax. Did not file 2012 taxes Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. Did not file 2012 taxes Attach Schedule SE to Form 1040 or Form 1040NR. Did not file 2012 taxes Additional Medicare Tax. Did not file 2012 taxes   Self-employed individuals must pay a 0. Did not file 2012 taxes 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. Did not file 2012 taxes   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. Did not file 2012 taxes A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Did not file 2012 taxes   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Did not file 2012 taxes For more information on Additional Medicare Tax, go to IRS. Did not file 2012 taxes gov and enter “Additional Medicare Tax” in the search box. Did not file 2012 taxes Deduction for employer-equivalent portion of self-employment tax. Did not file 2012 taxes   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. Did not file 2012 taxes This deduction is figured on Schedule SE (Form 1040). Did not file 2012 taxes Note. Did not file 2012 taxes No portion of the Additional Medicare Tax is deductible for self-employment tax. Did not file 2012 taxes More information. Did not file 2012 taxes   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. Did not file 2012 taxes International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. Did not file 2012 taxes These agreements are commonly referred to as totalization agreements. Did not file 2012 taxes Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Did not file 2012 taxes The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. Did not file 2012 taxes Agreements are in effect with the following countries. Did not file 2012 taxes Australia. Did not file 2012 taxes Austria. Did not file 2012 taxes Belgium. Did not file 2012 taxes Canada. Did not file 2012 taxes Chile. Did not file 2012 taxes Czech Republic. Did not file 2012 taxes Denmark. Did not file 2012 taxes Finland. Did not file 2012 taxes France. Did not file 2012 taxes Germany. Did not file 2012 taxes Greece. Did not file 2012 taxes Ireland. Did not file 2012 taxes Italy. Did not file 2012 taxes Japan. Did not file 2012 taxes Korea, South. Did not file 2012 taxes Luxembourg. Did not file 2012 taxes The Netherlands. Did not file 2012 taxes Norway. Did not file 2012 taxes Poland. Did not file 2012 taxes Portugal. Did not file 2012 taxes Spain. Did not file 2012 taxes Sweden. Did not file 2012 taxes Switzerland. Did not file 2012 taxes The United Kingdom. Did not file 2012 taxes Agreements with other countries are expected to enter into force in the future. Did not file 2012 taxes Employees. Did not file 2012 taxes   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. Did not file 2012 taxes However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. Did not file 2012 taxes You can get more information on any agreement by contacting the U. Did not file 2012 taxes S. Did not file 2012 taxes Social Security Administration at the address given later. Did not file 2012 taxes If you have access to the Internet, you can get more information at www. Did not file 2012 taxes socialsecurity. Did not file 2012 taxes gov/international. Did not file 2012 taxes   To establish that your pay is subject only to foreign social security taxes and is exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. Did not file 2012 taxes This will usually be the same agency to which you or your employer pays your foreign social security taxes. Did not file 2012 taxes The foreign agency will be able to tell you what information is needed for them to issue the certificate. Did not file 2012 taxes Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes social security taxes. Did not file 2012 taxes Only wages paid on or after the effective date of the agreement can be exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes social security taxes. Did not file 2012 taxes    Some of the countries with which the United States has agreements will not issue certificates of coverage. Did not file 2012 taxes In this case, either you or your employer should request a statement that your wages are not covered by the U. Did not file 2012 taxes S. Did not file 2012 taxes social security system. Did not file 2012 taxes Request the statement from the following address. Did not file 2012 taxes U. Did not file 2012 taxes S. Did not file 2012 taxes Social Security Administration Office of International Programs P. Did not file 2012 taxes O. Did not file 2012 taxes Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. Did not file 2012 taxes   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. Did not file 2012 taxes However, under some agreements, you may be exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes self-employment tax if you temporarily transfer your business activity to or from the United States. Did not file 2012 taxes   If you believe that your self-employment income is subject only to U. Did not file 2012 taxes S. Did not file 2012 taxes self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. Did not file 2012 taxes S. Did not file 2012 taxes Social Security Administration at the address given earlier. Did not file 2012 taxes This certificate will establish your exemption from foreign social security taxes. Did not file 2012 taxes   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. Did not file 2012 taxes S. Did not file 2012 taxes self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. Did not file 2012 taxes If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. Did not file 2012 taxes S. Did not file 2012 taxes social security system. Did not file 2012 taxes Request it from the U. Did not file 2012 taxes S. Did not file 2012 taxes Social Security Administration at the address given earlier. Did not file 2012 taxes Attach a photocopy of either statement to Form 1040 each year you are exempt. Did not file 2012 taxes Also print “Exempt, see attached statement” on the line for self-employment tax. Did not file 2012 taxes Estimated Tax Form 1040-ES (NR) You may have income from which no U. Did not file 2012 taxes S. Did not file 2012 taxes income tax is withheld. Did not file 2012 taxes Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. Did not file 2012 taxes If so, you may have to pay estimated tax. Did not file 2012 taxes Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). Did not file 2012 taxes If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. Did not file 2012 taxes Item (2) does not apply if you did not file a 2013 return. Did not file 2012 taxes A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. Did not file 2012 taxes If you pay by check, make it payable to the "United States Treasury. Did not file 2012 taxes " How to estimate your tax for 2014. Did not file 2012 taxes   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. Did not file 2012 taxes If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. Did not file 2012 taxes Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. Did not file 2012 taxes Note. Did not file 2012 taxes If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). Did not file 2012 taxes When to pay estimated tax. Did not file 2012 taxes   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. Did not file 2012 taxes If you have wages subject to the same withholding rules that apply to U. Did not file 2012 taxes S. Did not file 2012 taxes citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. Did not file 2012 taxes If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. Did not file 2012 taxes   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. Did not file 2012 taxes 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. Did not file 2012 taxes 15, 2014 4th installment Jan. Did not file 2012 taxes 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. Did not file 2012 taxes    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. Did not file 2012 taxes Fiscal year. Did not file 2012 taxes   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. Did not file 2012 taxes If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. Did not file 2012 taxes Changes in income, deductions, or exemptions. Did not file 2012 taxes   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. Did not file 2012 taxes This can happen if you receive additional income or if any of your deductions are reduced or eliminated. Did not file 2012 taxes If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. Did not file 2012 taxes Amended estimated tax. Did not file 2012 taxes   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. Did not file 2012 taxes To do this, see the instructions for Form 1040-ES (NR) and Publication 505. Did not file 2012 taxes Penalty for failure to pay estimated income tax. Did not file 2012 taxes   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. Did not file 2012 taxes These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Did not file 2012 taxes Prev  Up  Next   Home   More Online Publications