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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

E File 2011 Federal Taxes

2010 1040 Form2010 Tax Return FormsFreefile Irs GovE File Tax ReturnsAmending 2010 Federal Tax ReturnHow To File An Amended Tax Return For 2013Income Tax Preparation SoftwareH&block ComWhere Can I File State And Federal Taxes For FreeIrs Ez File OnlineCan You File State Taxes For Free1040ez Form 2013Taxslayer LoginWww Irs GovFiling A Amended Tax ReturnHow To File A Tax AmendmentAmendment To TaxesFree State Taxes OnlineForm 1040 Ez 2013 InstructionsBack Taxes1040nr Filing Online1040 Ez FileFree Online 1040ez FilingDo I File My My Taxes 2010How To Ammend 2010 Tax Return1040ez FilingH&r Block Advantage E FileAmend Tax ReturnAmended1040 EsFree E File Federal And State Tax ReturnFree Tax Filing 2012Federal Tax Forms 1040ez1014 Ez Form1040 Ez Download2011 Tax Forms 1040 EzFile An Amended ReturnFree State Tax ExtensionHow To Do An Amended Tax ReturnWww Myfreetaxes Com Unitedwayhoco Org

E File 2011 Federal Taxes

E file 2011 federal taxes Publication 587 - Main Content Table of Contents Qualifying for a DeductionExclusive Use Regular Use Trade or Business Use Principal Place of Business Place To Meet Patients, Clients, or Customers Separate Structure Figuring the DeductionUsing Actual Expenses Using the Simplified Method Daycare Facility Standard meal and snack rates. E file 2011 federal taxes Sale or Exchange of Your HomeGain on Sale Depreciation Basis Adjustment Reporting the Sale More Information Business Furniture and EquipmentListed Property Property Bought for Business Use Personal Property Converted to Business Use Recordkeeping Where To DeductSelf-Employed Persons Employees Partners How To Get Tax HelpLow Income Taxpayer Clinics Worksheet To Figure the Deduction for Business Use of Your HomeInstructions for the Worksheet Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Instructions for the Simplified Method Worksheet Instructions for the Daycare Facility Worksheet Instructions for the Area Adjustment Worksheet Qualifying for a Deduction Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. E file 2011 federal taxes However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. E file 2011 federal taxes Even then, the deductible amount of these types of expenses may be limited. E file 2011 federal taxes Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home. E file 2011 federal taxes To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your principal place of business (defined later), Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, In the case of a separate structure which is not attached to your home, in connection with your trade or business, On a regular basis for certain storage use (see Storage of inventory or product samples , later), For rental use (see Publication 527), or As a daycare facility (see Daycare Facility , later). E file 2011 federal taxes Additional tests for employee use. E file 2011 federal taxes   If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. E file 2011 federal taxes You must meet the tests discussed earlier plus: Your business use must be for the convenience of your employer, and You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. E file 2011 federal taxes If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. E file 2011 federal taxes Exclusive Use To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. E file 2011 federal taxes The area used for business can be a room or other separately identifiable space. E file 2011 federal taxes The space does not need to be marked off by a permanent partition. E file 2011 federal taxes You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. E file 2011 federal taxes Example. E file 2011 federal taxes You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. E file 2011 federal taxes Your family also uses the den for recreation. E file 2011 federal taxes The den is not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den. E file 2011 federal taxes Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. E file 2011 federal taxes You use part of your home for the storage of inventory or product samples (discussed next). E file 2011 federal taxes You use part of your home as a daycare facility, discussed later under Daycare Facility . E file 2011 federal taxes Note. E file 2011 federal taxes With the exception of these two uses, any portion of the home used for business purposes must meet the exclusive use test. E file 2011 federal taxes Storage of inventory or product samples. E file 2011 federal taxes    If you use part of your home for storage of inventory or product samples, you can deduct expenses for the business use of your home without meeting the exclusive use test. E file 2011 federal taxes However, you must meet all the following tests. E file 2011 federal taxes You sell products at wholesale or retail as your trade or business. E file 2011 federal taxes You keep the inventory or product samples in your home for use in your trade or business. E file 2011 federal taxes Your home is the only fixed location of your trade or business. E file 2011 federal taxes You use the storage space on a regular basis. E file 2011 federal taxes The space you use is a separately identifiable space suitable for storage. E file 2011 federal taxes Example. E file 2011 federal taxes Your home is the only fixed location of your business of selling mechanics' tools at retail. E file 2011 federal taxes You regularly use half of your basement for storage of inventory and product samples. E file 2011 federal taxes You sometimes use the area for personal purposes. E file 2011 federal taxes The expenses for the storage space are deductible even though you do not use this part of your basement exclusively for business. E file 2011 federal taxes Regular Use To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. E file 2011 federal taxes Incidental or occasional business use is not regular use. E file 2011 federal taxes You must consider all facts and circumstances in determining whether your use is on a regular basis. E file 2011 federal taxes Trade or Business Use To qualify under the trade-or-business-use test, you must use part of your home in connection with a trade or business. E file 2011 federal taxes If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use. E file 2011 federal taxes Example. E file 2011 federal taxes You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities related to your own investments. E file 2011 federal taxes You do not make investments as a broker or dealer. E file 2011 federal taxes So, your activities are not part of a trade or business and you cannot take a deduction for the business use of your home. E file 2011 federal taxes Principal Place of Business You can have more than one business location, including your home, for a single trade or business. E file 2011 federal taxes To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that trade or business. E file 2011 federal taxes To determine whether your home is your principal place of business, you must consider: The relative importance of the activities performed at each place where you conduct business, and The amount of time spent at each place where you conduct business. E file 2011 federal taxes Your home office will qualify as your principal place of business if you meet the following requirements. E file 2011 federal taxes You use it exclusively and regularly for administrative or management activities of your trade or business. E file 2011 federal taxes You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. E file 2011 federal taxes If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. E file 2011 federal taxes However, see the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways to qualify to deduct home office expenses. E file 2011 federal taxes Administrative or management activities. E file 2011 federal taxes   There are many activities that are administrative or managerial in nature. E file 2011 federal taxes The following are a few examples. E file 2011 federal taxes Billing customers, clients, or patients. E file 2011 federal taxes Keeping books and records. E file 2011 federal taxes Ordering supplies. E file 2011 federal taxes Setting up appointments. E file 2011 federal taxes Forwarding orders or writing reports. E file 2011 federal taxes Administrative or management activities performed at other locations. E file 2011 federal taxes   The following activities performed by you or others will not disqualify your home office from being your principal place of business. E file 2011 federal taxes You have others conduct your administrative or management activities at locations other than your home. E file 2011 federal taxes (For example, another company does your billing from its place of business. E file 2011 federal taxes ) You conduct administrative or management activities at places that are not fixed locations of your business, such as in a car or a hotel room. E file 2011 federal taxes You occasionally conduct minimal administrative or management activities at a fixed location outside your home. E file 2011 federal taxes You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. E file 2011 federal taxes (For example, you meet with or provide services to customers, clients, or patients at a fixed location of the business outside your home. E file 2011 federal taxes ) You have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead. E file 2011 federal taxes Please click here for the text description of the image. E file 2011 federal taxes Can you deduct business use of the home expenses? Example 1. E file 2011 federal taxes John is a self-employed plumber. E file 2011 federal taxes Most of John's time is spent at customers' homes and offices installing and repairing plumbing. E file 2011 federal taxes He has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business, such as phoning customers, ordering supplies, and keeping his books. E file 2011 federal taxes John writes up estimates and records of work completed at his customers' premises. E file 2011 federal taxes He does not conduct any substantial administrative or management activities at any fixed location other than his home office. E file 2011 federal taxes John does not do his own billing. E file 2011 federal taxes He uses a local bookkeeping service to bill his customers. E file 2011 federal taxes John's home office qualifies as his principal place of business for deducting expenses for its use. E file 2011 federal taxes He uses the home office for the administrative or managerial activities of his plumbing business and he has no other fixed location where he conducts these administrative or managerial activities. E file 2011 federal taxes His choice to have his billing done by another company does not disqualify his home office from being his principal place of business. E file 2011 federal taxes He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. E file 2011 federal taxes Example 2. E file 2011 federal taxes Pamela is a self-employed sales representative for several different product lines. E file 2011 federal taxes She has an office in her home that she uses exclusively and regularly to set up appointments and write up orders and other reports for the companies whose products she sells. E file 2011 federal taxes She occasionally writes up orders and sets up appointments from her hotel room when she is away on business overnight. E file 2011 federal taxes Pamela's business is selling products to customers at various locations throughout her territory. E file 2011 federal taxes To make these sales, she regularly visits customers to explain the available products and take orders. E file 2011 federal taxes Pamela's home office qualifies as her principal place of business for deducting expenses for its use. E file 2011 federal taxes She conducts administrative or management activities there and she has no other fixed location where she conducts substantial administrative or management activities. E file 2011 federal taxes The fact that she conducts some administrative or management activities in her hotel room (not a fixed location) does not disqualify her home office from being her principal place of business. E file 2011 federal taxes She meets all the qualifications, including principal place of business, so she can deduct expenses (subject to certain limitations, explained later) for the business use of her home. E file 2011 federal taxes Example 3. E file 2011 federal taxes Paul is a self-employed anesthesiologist. E file 2011 federal taxes He spends the majority of his time administering anesthesia and postoperative care in three local hospitals. E file 2011 federal taxes One of the hospitals provides him with a small shared office where he could conduct administrative or management activities. E file 2011 federal taxes Paul very rarely uses the office the hospital provides. E file 2011 federal taxes He uses a room in his home that he has converted to an office. E file 2011 federal taxes He uses this room exclusively and regularly to conduct all the following activities. E file 2011 federal taxes Contacting patients, surgeons, and hospitals regarding scheduling. E file 2011 federal taxes Preparing for treatments and presentations. E file 2011 federal taxes Maintaining billing records and patient logs. E file 2011 federal taxes Satisfying continuing medical education requirements. E file 2011 federal taxes Reading medical journals and books. E file 2011 federal taxes Paul's home office qualifies as his principal place of business for deducting expenses for its use. E file 2011 federal taxes He conducts administrative or management activities for his business as an anesthesiologist there and he has no other fixed location where he conducts substantial administrative or management activities for this business. E file 2011 federal taxes His choice to use his home office instead of the one provided by the hospital does not disqualify his home office from being his principal place of business. E file 2011 federal taxes His performance of substantial nonadministrative or nonmanagement activities at fixed locations outside his home also does not disqualify his home office from being his principal place of business. E file 2011 federal taxes He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. E file 2011 federal taxes Example 4. E file 2011 federal taxes Kathleen is employed as a teacher. E file 2011 federal taxes She is required to teach and meet with students at the school and to grade papers and tests. E file 2011 federal taxes The school provides her with a small office where she can work on her lesson plans, grade papers and tests, and meet with parents and students. E file 2011 federal taxes The school does not require her to work at home. E file 2011 federal taxes Kathleen prefers to use the office she has set up in her home and does not use the one provided by the school. E file 2011 federal taxes She uses this home office exclusively and regularly for the administrative duties of her teaching job. E file 2011 federal taxes Kathleen must meet the convenience-of-the-employer test, even if her home qualifies as her principal place of business for deducting expenses for its use. E file 2011 federal taxes Her employer provides her with an office and does not require her to work at home, so she does not meet the convenience-of-the-employer test and cannot claim a deduction for the business use of her home. E file 2011 federal taxes More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. E file 2011 federal taxes Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. E file 2011 federal taxes You must use the home office exclusively and regularly for one or more of the following purposes. E file 2011 federal taxes As the principal place of business for one or more of your trades or businesses. E file 2011 federal taxes As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. E file 2011 federal taxes If your home office is a separate structure, in connection with one or more of your trades or businesses. E file 2011 federal taxes You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i. E file 2011 federal taxes e. E file 2011 federal taxes , personal) activities. E file 2011 federal taxes If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. E file 2011 federal taxes See Rental to employer , later, if you rent part of your home to your employer. E file 2011 federal taxes Example. E file 2011 federal taxes Tracy White is employed as a teacher. E file 2011 federal taxes Her principal place of work is the school, which provides her office space to do her school work. E file 2011 federal taxes She also has a mail order jewelry business. E file 2011 federal taxes All her work in the jewelry business is done in her home office and the office is used exclusively for that business. E file 2011 federal taxes If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. E file 2011 federal taxes If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. E file 2011 federal taxes As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. E file 2011 federal taxes She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity. E file 2011 federal taxes Place To Meet Patients, Clients, or Customers If you meet or deal with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business if you meet both the following tests. E file 2011 federal taxes You physically meet with patients, clients, or customers on your premises. E file 2011 federal taxes Their use of your home is substantial and integral to the conduct of your business. E file 2011 federal taxes Doctors, dentists, attorneys, and other professionals who maintain offices in their homes generally will meet this requirement. E file 2011 federal taxes Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home. E file 2011 federal taxes The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business. E file 2011 federal taxes Example. E file 2011 federal taxes June Quill, a self-employed attorney, works 3 days a week in her city office. E file 2011 federal taxes She works 2 days a week in her home office used only for business. E file 2011 federal taxes She regularly meets clients there. E file 2011 federal taxes Her home office qualifies for a business deduction because she meets clients there in the normal course of her business. E file 2011 federal taxes Separate Structure You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. E file 2011 federal taxes The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. E file 2011 federal taxes Example. E file 2011 federal taxes John Berry operates a floral shop in town. E file 2011 federal taxes He grows the plants for his shop in a greenhouse behind his home. E file 2011 federal taxes He uses the greenhouse exclusively and regularly in his business, so he can deduct the expenses for its use, subject to certain limitations, explained later. E file 2011 federal taxes Figuring the Deduction After you determine that you meet the tests under Qualifying for a Deduction , you can begin to figure how much you can deduct. E file 2011 federal taxes When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method. E file 2011 federal taxes Electing to use the simplified method. E file 2011 federal taxes   The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. E file 2011 federal taxes You choose whether or not to figure your deduction using the simplified method each taxable year. E file 2011 federal taxes See Using the Simplified Method , later. E file 2011 federal taxes Rental to employer. E file 2011 federal taxes   If you rent part of your home to your employer and you use the rented part in performing services for your employer as an employee, your deduction for the business use of your home is limited. E file 2011 federal taxes You can deduct mortgage interest, qualified mortgage insurance premiums, real estate taxes, and personal casualty losses for the rented part, subject to any limitations. E file 2011 federal taxes However, you cannot deduct otherwise allowable trade or business expenses, business casualty losses, or depreciation related to the use of your home (or use the simplified method as an alternative to deducting these actual expenses) in performing services for your employer. E file 2011 federal taxes Using Actual Expenses If you do not or cannot elect to use the simplified method for a home, you will figure your deduction for that home using your actual expenses. E file 2011 federal taxes You will also need to figure the percentage of your home used for business and the limit on the deduction. E file 2011 federal taxes If you are an employee or a partner, or you use your home in your farming business and you file Schedule F (Form 1040), you can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help you figure your deduction. E file 2011 federal taxes If you use your home in a trade or business and you file Schedule C (Form 1040), you will use Form 8829 to figure your deduction. E file 2011 federal taxes Part-year use. E file 2011 federal taxes   You cannot deduct expenses for the business use of your home incurred during any part of the year you did not use your home for business purposes. E file 2011 federal taxes For example, if you begin using part of your home for business on July 1, and you meet all the tests from that date until the end of the year, consider only your expenses for the last half of the year in figuring your allowable deduction. E file 2011 federal taxes Expenses related to tax-exempt income. E file 2011 federal taxes   Generally, you cannot deduct expenses that are related to tax-exempt allowances. E file 2011 federal taxes However, if you receive a tax-exempt parsonage allowance or a tax-exempt military allowance, your expenses for mortgage interest and real estate taxes are deductible under the normal rules. E file 2011 federal taxes No deduction is allowed for other expenses related to the tax-exempt allowance. E file 2011 federal taxes   If your housing is provided free of charge and the value of the housing is tax exempt, you cannot deduct the rental value of any portion of the housing. E file 2011 federal taxes Actual Expenses You must divide the expenses of operating your home between personal and business use. E file 2011 federal taxes The part of a home operating expense you can use to figure your deduction depends on both of the following. E file 2011 federal taxes Whether the expense is direct, indirect, or unrelated. E file 2011 federal taxes The percentage of your home used for business. E file 2011 federal taxes Table 1, next, describes the types of expenses you may have and the extent to which they are deductible. E file 2011 federal taxes Table 1. E file 2011 federal taxes Types of Expenses  Expense  Description  Deductibility Direct Expenses only for  the business part  of your home. E file 2011 federal taxes Deductible in full. E file 2011 federal taxes *   Examples:  Painting or repairs  only in the area  used for business. E file 2011 federal taxes Exception: May be only partially  deductible in a daycare facility. E file 2011 federal taxes See Daycare Facility , later. E file 2011 federal taxes Indirect Expenses for  keeping up and running your  entire home. E file 2011 federal taxes Deductible based on the percentage of your home used for business. E file 2011 federal taxes *   Examples:  Insurance, utilities, and  general repairs. E file 2011 federal taxes   Unrelated Expenses only for  the parts of your  home not used  for business. E file 2011 federal taxes Not deductible. E file 2011 federal taxes   Examples:  Lawn care or painting  a room not used  for business. E file 2011 federal taxes   *Subject to the deduction limit, discussed later. E file 2011 federal taxes Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses. E file 2011 federal taxes Certain expenses are deductible whether or not you use your home for business. E file 2011 federal taxes If you qualify to deduct business use of the home expenses, use the business percentage of these expenses to figure your total business use of the home deduction. E file 2011 federal taxes These expenses include the following. E file 2011 federal taxes Real estate taxes. E file 2011 federal taxes Qualified mortgage insurance premiums. E file 2011 federal taxes Deductible mortgage interest. E file 2011 federal taxes Casualty losses. E file 2011 federal taxes Other expenses are deductible only if you use your home for business. E file 2011 federal taxes You can use the business percentage of these expenses to figure your total business use of the home deduction. E file 2011 federal taxes These expenses generally include (but are not limited to) the following. E file 2011 federal taxes Depreciation (covered under Depreciating Your Home , later). E file 2011 federal taxes Insurance. E file 2011 federal taxes Rent paid for the use of property you do not own but use in your trade or business. E file 2011 federal taxes Repairs. E file 2011 federal taxes Security system. E file 2011 federal taxes Utilities and services. E file 2011 federal taxes Real estate taxes. E file 2011 federal taxes   To figure the business part of your real estate taxes, multiply the real estate taxes paid by the percentage of your home used for business. E file 2011 federal taxes   For more information on the deduction for real estate taxes, see Publication 530, Tax Information for Homeowners. E file 2011 federal taxes Deductible mortgage interest. E file 2011 federal taxes   To figure the business part of your deductible mortgage interest, multiply this interest by the percentage of your home used for business. E file 2011 federal taxes You can include interest on a second mortgage in this computation. E file 2011 federal taxes If your total mortgage debt is more than $1,000,000 or your home equity debt is more than $100,000, your deduction may be limited. E file 2011 federal taxes For more information on what interest is deductible, see Publication 936, Home Mortgage Interest Deduction. E file 2011 federal taxes Qualified mortgage insurance premiums. E file 2011 federal taxes   To figure the business part of your qualified mortgage insurance premiums, multiply the premiums by the percentage of your home used for business. E file 2011 federal taxes You can include premiums for insurance on a second mortgage in this computation. E file 2011 federal taxes If your adjusted gross income is more than $100,000 ($50,000 if your filing status is married filing separately), your deduction may be limited. E file 2011 federal taxes For more information, see Publication 936, and Line 13 in the Instructions for Schedule A (Form 1040). E file 2011 federal taxes Casualty losses. E file 2011 federal taxes    If you have a casualty loss on your home that you use for business, treat the casualty loss as a direct expense, an indirect expense, or an unrelated expense, depending on the property affected. E file 2011 federal taxes A direct expense is the loss on the portion of the property you use only in your business. E file 2011 federal taxes Use the entire loss to figure the business use of the home deduction. E file 2011 federal taxes An indirect expense is the loss on property you use for both business and personal purposes. E file 2011 federal taxes Use only the business portion to figure the deduction. E file 2011 federal taxes An unrelated expense is the loss on property you do not use in your business. E file 2011 federal taxes Do not use any of the loss to figure the deduction. E file 2011 federal taxes Example. E file 2011 federal taxes You meet the rules to take a deduction for an office in your home that is 10% of the total area of your house. E file 2011 federal taxes A storm damages your roof. E file 2011 federal taxes This is an indirect expense as the roof is part of the whole house and is considered to be used both for business and personal purposes. E file 2011 federal taxes You would complete Form 4684, Casualties and Thefts, to report your loss. E file 2011 federal taxes You complete both section A (Personal Use Property) and section B (Business and Income-Producing Property) as your home is used both for business and personal purposes. E file 2011 federal taxes Since you use 90% of your home for personal purposes, use 90% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 2, 3, 5, and 6 of Form 4684. E file 2011 federal taxes Since you use 10% of your home for business purposes, use 10% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 20, 21, 23, and 24 of Form 4684. E file 2011 federal taxes Forms and worksheets to use. E file 2011 federal taxes   If you are filing Schedule C (Form 1040), get Form 8829 and follow the instructions for casualty losses. E file 2011 federal taxes If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. E file 2011 federal taxes You will also need to get Form 4684. E file 2011 federal taxes More information. E file 2011 federal taxes   For more information on casualty losses, see Publication 547, Casualties, Disasters, and Thefts. E file 2011 federal taxes Insurance. E file 2011 federal taxes   You can deduct the cost of insurance that covers the business part of your home. E file 2011 federal taxes However, if your insurance premium gives you coverage for a period that extends past the end of your tax year, you can deduct only the business percentage of the part of the premium that gives you coverage for your tax year. E file 2011 federal taxes You can deduct the business percentage of the part that applies to the following year in that year. E file 2011 federal taxes Rent. E file 2011 federal taxes   If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. E file 2011 federal taxes To figure your deduction, multiply your rent payments by the percentage of your home used for business. E file 2011 federal taxes   If you own your home, you cannot deduct the fair rental value of your home. E file 2011 federal taxes However, see Depreciating Your Home , later. E file 2011 federal taxes Repairs. E file 2011 federal taxes   The cost of repairs that relate to your business, including labor (other than your own labor), is a deductible expense. E file 2011 federal taxes For example, a furnace repair benefits the entire home. E file 2011 federal taxes If you use 10% of your home for business, you can deduct 10% of the cost of the furnace repair. E file 2011 federal taxes   Repairs keep your home in good working order over its useful life. E file 2011 federal taxes Examples of common repairs are patching walls and floors, painting, wallpapering, repairing roofs and gutters, and mending leaks. E file 2011 federal taxes However, repairs are sometimes treated as a permanent improvement and are not deductible. E file 2011 federal taxes See Permanent improvements , later, under Depreciating Your Home. E file 2011 federal taxes Security system. E file 2011 federal taxes   If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. E file 2011 federal taxes You also can take a depreciation deduction for the part of the cost of the security system relating to the business use of your home. E file 2011 federal taxes Utilities and services. E file 2011 federal taxes   Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. E file 2011 federal taxes However, if you use part of your home for business, you can deduct the business part of these expenses. E file 2011 federal taxes Generally, the business percentage for utilities is the same as the percentage of your home used for business. E file 2011 federal taxes Telephone. E file 2011 federal taxes   The basic local telephone service charge, including taxes, for the first telephone line into your home (i. E file 2011 federal taxes e. E file 2011 federal taxes , landline) is a nondeductible personal expense. E file 2011 federal taxes However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. E file 2011 federal taxes Do not include these expenses as a cost of using your home for business. E file 2011 federal taxes Deduct these charges separately on the appropriate form or schedule. E file 2011 federal taxes For example, if you file Schedule C (Form 1040), deduct these expenses on line 25, Utilities (instead of line 30, Expenses for business use of your home). E file 2011 federal taxes Depreciating Your Home If you own your home and qualify to deduct expenses for its business use, you can claim a deduction for depreciation. E file 2011 federal taxes Depreciation is an allowance for the wear and tear on the part of your home used for business. E file 2011 federal taxes You cannot depreciate the cost or value of the land. E file 2011 federal taxes You recover its cost when you sell or otherwise dispose of the property. E file 2011 federal taxes Before you figure your depreciation deduction, you need to know the following information. E file 2011 federal taxes The month and year you started using your home for business. E file 2011 federal taxes The adjusted basis and fair market value of your home (excluding land) at the time you began using it for business. E file 2011 federal taxes The cost of any improvements before and after you began using the property for business. E file 2011 federal taxes The percentage of your home used for business. E file 2011 federal taxes See Business Percentage , later. E file 2011 federal taxes Adjusted basis defined. E file 2011 federal taxes   The adjusted basis of your home is generally its cost, plus the cost of any permanent improvements you made to it, minus any casualty losses or depreciation deducted in earlier tax years. E file 2011 federal taxes For a discussion of adjusted basis, see Publication 551. E file 2011 federal taxes Permanent improvements. E file 2011 federal taxes   A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. E file 2011 federal taxes Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling. E file 2011 federal taxes    You must carefully distinguish between repairs and improvements. E file 2011 federal taxes See Repairs , earlier, under Actual Expenses. E file 2011 federal taxes You also must keep accurate records of these expenses. E file 2011 federal taxes These records will help you decide whether an expense is a deductible or a capital (added to the basis) expense. E file 2011 federal taxes However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement. E file 2011 federal taxes Example. E file 2011 federal taxes You buy an older home and fix up two rooms as a beauty salon. E file 2011 federal taxes You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. E file 2011 federal taxes Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. E file 2011 federal taxes However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. E file 2011 federal taxes You cannot deduct any portion of it as a repair expense. E file 2011 federal taxes Adjusting for depreciation deducted in earlier years. E file 2011 federal taxes   Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. E file 2011 federal taxes If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. E file 2011 federal taxes If you did not deduct any depreciation, decrease the basis by the amount you could have deducted. E file 2011 federal taxes   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year. E file 2011 federal taxes   If you deducted the incorrect amount of depreciation, see Publication 946. E file 2011 federal taxes Fair market value defined. E file 2011 federal taxes   The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. E file 2011 federal taxes Sales of similar property, on or about the date you begin using your home for business, may be helpful in determining the property's fair market value. E file 2011 federal taxes Figuring the depreciation deduction for the current year. E file 2011 federal taxes   If you began using your home for business before 2013, continue to use the same depreciation method you used in past tax years. E file 2011 federal taxes   If you began using your home for business for the first time in 2013, depreciate the business part as nonresidential real property under the modified accelerated cost recovery system (MACRS). E file 2011 federal taxes Under MACRS, nonresidential real property is depreciated using the straight line method over 39 years. E file 2011 federal taxes For more information on MACRS and other methods of depreciation, see Publication 946. E file 2011 federal taxes   To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). E file 2011 federal taxes The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following. E file 2011 federal taxes The adjusted basis of your home (excluding land) on the date you began using your home for business. E file 2011 federal taxes The fair market value of your home (excluding land) on the date you began using your home for business. E file 2011 federal taxes Depreciation table. E file 2011 federal taxes   If 2013 was the first year you used your home for business, you can figure your 2013 depreciation for the business part of your home by using the appropriate percentage from the following table. E file 2011 federal taxes Table 2. E file 2011 federal taxes MACRS Percentage Table for 39-Year Nonresidential Real Property Month First Used for Business Percentage To Use 1 2. E file 2011 federal taxes 461% 2 2. E file 2011 federal taxes 247% 3 2. E file 2011 federal taxes 033% 4 1. E file 2011 federal taxes 819% 5 1. E file 2011 federal taxes 605% 6 1. E file 2011 federal taxes 391% 7 1. E file 2011 federal taxes 177% 8 0. E file 2011 federal taxes 963% 9 0. E file 2011 federal taxes 749% 10 0. E file 2011 federal taxes 535% 11 0. E file 2011 federal taxes 321% 12 0. E file 2011 federal taxes 107%   Multiply the depreciable basis of the business part of your home by the percentage from the table for the first month you use your home for business. E file 2011 federal taxes See Publication 946 for the percentages for the remaining tax years of the recovery period. E file 2011 federal taxes Example. E file 2011 federal taxes In May, George Miller began to use one room in his home exclusively and regularly to meet clients. E file 2011 federal taxes This room is 8% of the square footage of his home. E file 2011 federal taxes He bought the home in 2003 for $125,000. E file 2011 federal taxes He determined from his property tax records that his adjusted basis in the house (exclusive of land) is $115,000. E file 2011 federal taxes In May, the house had a fair market value of $165,000. E file 2011 federal taxes He multiplies his adjusted basis of $115,000 (which is less than the fair market value) by 8%. E file 2011 federal taxes The result is $9,200, his depreciable basis for the business part of the house. E file 2011 federal taxes George files his return based on the calendar year. E file 2011 federal taxes May is the 5th month of his tax year. E file 2011 federal taxes He multiplies his depreciable basis of $9,200 by 1. E file 2011 federal taxes 605% (. E file 2011 federal taxes 01605), the percentage from the table for the 5th month. E file 2011 federal taxes His depreciation deduction is $147. E file 2011 federal taxes 66. E file 2011 federal taxes Depreciating permanent improvements. E file 2011 federal taxes   Add the costs of permanent improvements made before you began using your home for business to the basis of your property. E file 2011 federal taxes Depreciate these costs as part of the cost of your home as explained earlier. E file 2011 federal taxes The costs of improvements made after you begin using your home for business (that affect the business part of your home, such as a new roof) are depreciated separately. E file 2011 federal taxes Multiply the cost of the improvement by the business-use percentage and depreciate the result over the recovery period that would apply to your home if you began using it for business at the same time as the improvement. E file 2011 federal taxes For improvements made this year, the recovery period is 39 years. E file 2011 federal taxes For the percentage to use for the first year, see Table 2, earlier. E file 2011 federal taxes For more information on recovery periods, see Publication 946. E file 2011 federal taxes Business Percentage To find the business percentage, compare the size of the part of your home that you use for business to your whole house. E file 2011 federal taxes Use the resulting percentage to figure the business part of the expenses for operating your entire home. E file 2011 federal taxes You can use any reasonable method to determine the business percentage. E file 2011 federal taxes The following are two commonly used methods for figuring the percentage. E file 2011 federal taxes Divide the area (length multiplied by the width) used for business by the total area of your home. E file 2011 federal taxes If the rooms in your home are all about the same size, you can divide the number of rooms used for business by the total number of rooms in your home. E file 2011 federal taxes Example 1. E file 2011 federal taxes Your office is 240 square feet (12 feet × 20 feet). E file 2011 federal taxes Your home is 1,200 square feet. E file 2011 federal taxes Your office is 20% (240 ÷ 1,200) of the total area of your home. E file 2011 federal taxes Your business percentage is 20%. E file 2011 federal taxes Example 2. E file 2011 federal taxes You use one room in your home for business. E file 2011 federal taxes Your home has 10 rooms, all about equal size. E file 2011 federal taxes Your office is 10% (1 ÷ 10) of the total area of your home. E file 2011 federal taxes Your business percentage is 10%. E file 2011 federal taxes Use lines 1-7 of Form 8829, or lines 1-3 on the Worksheet To Figure the Deduction for Business Use of Your Home (near the end of this publication) to figure your business percentage. E file 2011 federal taxes Deduction Limit If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. E file 2011 federal taxes If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. E file 2011 federal taxes Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation of your home (with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from the business use of your home minus the sum of the following. E file 2011 federal taxes The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). E file 2011 federal taxes These expenses are discussed in detail under Actual Expenses , earlier. E file 2011 federal taxes The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. E file 2011 federal taxes If you are self-employed, do not include in (2) above your deduction for one-half of your self-employment tax. E file 2011 federal taxes Carryover of unallowed expenses. E file 2011 federal taxes   If your deductions are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. E file 2011 federal taxes They are subject to the deduction limit for that year, whether or not you live in the same home during that year. E file 2011 federal taxes Figuring the deduction limit and carryover. E file 2011 federal taxes   If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. E file 2011 federal taxes If you file Schedule C (Form 1040), figure your deduction limit and carryover on Form 8829. E file 2011 federal taxes Example. E file 2011 federal taxes You meet the requirements for deducting expenses for the business use of your home. E file 2011 federal taxes You use 20% of your home for business. E file 2011 federal taxes In 2013, your business expenses and the expenses for the business use of your home are deducted from your gross income in the following order. E file 2011 federal taxes    Gross income from business $6,000 Minus:   Deductible mortgage interest and real estate taxes (20%) 3,000 Business expenses not related to the use of your home (100%) (business phone, supplies, and depreciation on equipment) 2,000 Deduction limit $1,000 Minus other expenses allocable to business use of home:   Maintenance, insurance, and utilities (20%) 800 Depreciation allowed (20% = $1,600 allowable, but subject to balance of deduction limit) 200 Other expenses up to the deduction limit $1,000 Depreciation carryover to 2014 ($1,600 − $200) (subject to deduction limit in 2014) $1,400   You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). E file 2011 federal taxes You also can deduct all of your business expenses not related to the use of your home ($2,000). E file 2011 federal taxes Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is less than the $1,000 deduction limit. E file 2011 federal taxes Your deduction for depreciation for the business use of your home is limited to $200 ($1,000 minus $800) because of the deduction limit. E file 2011 federal taxes You can carry over the $1,400 balance and add it to your depreciation for 2014, subject to your deduction limit in 2014. E file 2011 federal taxes More than one place of business. E file 2011 federal taxes   If part of the gross income from your trade or business is from the business use of part of your home and part is from a place other than your home, you must determine the part of your gross income from the business use of your home before you figure the deduction limit. E file 2011 federal taxes In making this determination, consider the time you spend at each location, the business investment in each location, and any other relevant facts and circumstances. E file 2011 federal taxes If your home office qualifies as your principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. E file 2011 federal taxes For more information on transportation costs, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. E file 2011 federal taxes Using the Simplified Method The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. E file 2011 federal taxes In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. E file 2011 federal taxes The area you use to figure your deduction is limited to 300 square feet. E file 2011 federal taxes See Simplified Amount , later, for information about figuring the amount of the deduction. E file 2011 federal taxes For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 I. E file 2011 federal taxes R. E file 2011 federal taxes B. E file 2011 federal taxes 478, available at www. E file 2011 federal taxes irs. E file 2011 federal taxes gov/irb/2013-06_IRB/ar09. E file 2011 federal taxes html. E file 2011 federal taxes Actual expenses and depreciation of your home. E file 2011 federal taxes   If you elect to use the simplified method, you cannot deduct any actual expenses for the business except for business expenses that are not related to the use of the home. E file 2011 federal taxes You also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of the home that is used for a qualified business use. E file 2011 federal taxes The depreciation deduction allowable for that portion of the home is deemed to be zero for a year you use the simplified method. E file 2011 federal taxes If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional depreciation table for MACRS to figure your depreciation. E file 2011 federal taxes More information. E file 2011 federal taxes   For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I. E file 2011 federal taxes R. E file 2011 federal taxes B. E file 2011 federal taxes 478, available at www. E file 2011 federal taxes irs. E file 2011 federal taxes gov/irb/2013-06_IRB/ar09. E file 2011 federal taxes html. E file 2011 federal taxes See Publication 946 for the optional depreciation tables Although you cannot deduct any depreciation or section 179 expense for the portion of your home used for a qualified business use, you may still claim depreciation or the section 179 expense deduction on other assets used in the business (for example, furniture and equipment). E file 2011 federal taxes Expenses deductible without regard to business use. E file 2011 federal taxes   When using the simplified method, treat as personal expenses those business expenses related to the use of the home that are deductible without regard to whether there is a qualified business use of the home. E file 2011 federal taxes These expenses include mortgage interest, real estate taxes, and casualty losses, subject to any limitations. E file 2011 federal taxes See Where To Deduct , later. E file 2011 federal taxes If you also rent part of your home, you must still allocate these expenses between rental use and personal use (for this purpose, personal use includes business use reported using the simplified method). E file 2011 federal taxes No deduction of carryover of actual expenses. E file 2011 federal taxes   If you used actual expenses to figure your deduction for business use of the home in a prior year and your deduction was limited, you cannot deduct the disallowed amount carried over from the prior year during a year you figure your deduction using the simplified method. E file 2011 federal taxes Instead, you will continue to carry over the disallowed amount to the next year that you use actual expenses to figure your deduction. E file 2011 federal taxes Electing the Simplified Method You choose whether or not to figure your deduction using the simplified method each taxable year. E file 2011 federal taxes Make the election for a home by using the simplified method to figure the deduction for the qualified business use of that home on a timely filed, original federal income tax return. E file 2011 federal taxes An election for a taxable year, once made, is irrevocable. E file 2011 federal taxes A change from using the simplified method in one year to actual expenses in a succeeding taxable year, or vice-versa, is not a change in method of accounting and does not require the consent of the Commissioner. E file 2011 federal taxes Shared use. E file 2011 federal taxes   If you share your home with someone else who also uses the home in a business that qualifies for this deduction, each of you make your own election. E file 2011 federal taxes More than one qualified business use. E file 2011 federal taxes   If you conduct more than one business that qualifies for this deduction in your home, your election to use the simplified method applies to all your qualified business uses of that home. E file 2011 federal taxes More than one home. E file 2011 federal taxes   If you used more than one home during the year (for example, you moved during the year), you can elect to use the simplified method for only one of the homes. E file 2011 federal taxes You must figure the deduction for any other home using actual expenses. E file 2011 federal taxes Simplified Amount Your deduction for the qualified business use of a home is the sum of each amount you figure for a separate qualified business use of your home. E file 2011 federal taxes To figure your deduction for the business use of a home using the simplified method, you will need to know the following information for each qualified business use of the home. E file 2011 federal taxes The allowable area of your home used in conducting the business. E file 2011 federal taxes If you did not conduct the business for the entire year in the home or the area changed during the year, you will need to know the allowable area you used and the number of days you conducted the business for each month. E file 2011 federal taxes The gross income from the business use of your home. E file 2011 federal taxes The amount of the business expenses that are not related to the use of your home. E file 2011 federal taxes If the qualified business use is for a daycare facility that uses space in your home on a regular (but not exclusive) basis, you will also need to know the percentage of time that part of your home is used for daycare. E file 2011 federal taxes To figure the amount you can deduct for qualified business use of your home using the simplified method, follow these 3 steps. E file 2011 federal taxes Multiply the allowable area by $5 (or less than $5 if the qualified business use is for a daycare that uses space in your home on a regular, but not exclusive, basis). E file 2011 federal taxes See Allowable area and Space used regularly for daycare , later. E file 2011 federal taxes Subtract the expenses from the business that are not related to the use of the home from the gross income related to the business use of the home. E file 2011 federal taxes If these expenses are greater than the gross income from the business use of the home, then you cannot take a deduction for this business use of the home. E file 2011 federal taxes See Gross income limitation , later. E file 2011 federal taxes Take the smaller of the amounts from (1) and (2). E file 2011 federal taxes This is the amount you can deduct for this qualified business use of your home using the simplified method. E file 2011 federal taxes If you are an employee or a partner, or you use your home in your farming business and file Schedule F (Form 1040), you can use the Simplified Method Worksheet, near the end of this publication, to help you figure your deduction. E file 2011 federal taxes If you use your home in a trade or business and you file Schedule C (Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction. E file 2011 federal taxes Allowable area. E file 2011 federal taxes   In most cases, the allowable area is the smaller of the actual area (in square feet) of your home used in conducting the business and 300 square feet. E file 2011 federal taxes Your allowable area may be smaller if you conducted the business as a qualified joint venture with your spouse, the area used by the business was shared with another qualified business use, you used the home for the business for only part of the year, or the area used by the business changed during the year. E file 2011 federal taxes You can use the Area Adjustment Worksheet (for simplified method), near the end of this publication, to help you figure your allowable area for a qualified business use. E file 2011 federal taxes Area used by a qualified joint venture. E file 2011 federal taxes   If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the business use separately. E file 2011 federal taxes Split the actual area used in conducting business between you and your spouse in the same manner you split your other tax attributes. E file 2011 federal taxes Then, each spouse will figure the allowable area separately. E file 2011 federal taxes For more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C. E file 2011 federal taxes Shared use. E file 2011 federal taxes   If you share your home with someone else who uses the home to conduct business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. E file 2011 federal taxes You must allocate the shared space between you and the other person in a reasonable manner. E file 2011 federal taxes Example. E file 2011 federal taxes Kristin and Lindsey are roommates. E file 2011 federal taxes Kristin uses 300 square feet of their home for a qualified business use. E file 2011 federal taxes Lindsey uses 200 square feet of their home for a separate qualified business use. E file 2011 federal taxes The qualified business uses share 100 square feet. E file 2011 federal taxes In addition to the portion that they do not share, Kristin and Lindsey can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. E file 2011 federal taxes If divided evenly, Kristin could claim 250 square feet using the simplified method and Lindsey could claim 150 square feet. E file 2011 federal taxes More than one qualified business use. E file 2011 federal taxes   If you conduct more than one business qualifying for the deduction, you are limited to a maximum of 300 square feet for all of the businesses. E file 2011 federal taxes Allocate the actual square footage used (up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. E file 2011 federal taxes However, do not allocate more square feet to a qualified business use than you actually use for that business. E file 2011 federal taxes Rental use. E file 2011 federal taxes   The simplified method does not apply to rental use. E file 2011 federal taxes A rental use that qualifies for the deduction must be figured using actual expenses. E file 2011 federal taxes If the rental use and a qualified business use share the same area, you will have to allocate the actual area used between the two uses. E file 2011 federal taxes You cannot use the same area to figure a deduction for the qualified business use as you are using to figure the deduction for the rental use. E file 2011 federal taxes Part-year use or area changes. E file 2011 federal taxes   If your qualified business use was for a portion of the taxable year (for example, a seasonal business or a business that begins during the taxable year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. E file 2011 federal taxes You calculate the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12. E file 2011 federal taxes When determining the average monthly allowable square footage, you cannot take more than 300 square feet into account for any one month. E file 2011 federal taxes Additionally, if your qualified business use was less than 15 days in a month, you must use -0- for that month. E file 2011 federal taxes Example 1. E file 2011 federal taxes Andy files his federal income tax return on a calendar year basis. E file 2011 federal taxes On July 20, he began using 420 square feet of his home for a qualified business use. E file 2011 federal taxes He continued to use the 420 square feet until the end of the year. E file 2011 federal taxes His average monthly allowable square footage is 125 square feet, which is figured using 300 square feet for each month August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12). E file 2011 federal taxes Example 2. E file 2011 federal taxes Amy files her federal income tax return on a calendar year basis. E file 2011 federal taxes On April 20, she began using 100 square feet of her home for a qualified business use. E file 2011 federal taxes On August 5, she expanded the area of her qualified use to 330 square feet. E file 2011 federal taxes Amy continued to use the 330 square feet until the end of the year. E file 2011 federal taxes Her average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square feet for August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12). E file 2011 federal taxes Gross income limitation. E file 2011 federal taxes   Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home. E file 2011 federal taxes If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home. E file 2011 federal taxes Business expenses not related to use of the home. E file 2011 federal taxes   These expenses relate to the business activity in the home, but not to the use of the home itself. E file 2011 federal taxes You can still deduct business expenses that are unrelated to the use of the home. E file 2011 federal taxes See Where To Deduct , later. E file 2011 federal taxes Examples of business expenses that are unrelated to the use of the home are advertising, wages, supplies, dues, and depreciation for equipment. E file 2011 federal taxes Space used regularly for daycare. E file 2011 federal taxes   If you do not use the area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) before figuring your deduction. E file 2011 federal taxes The reduced rate will equal the prescribed rate times a fraction. E file 2011 federal taxes The numerator of the fraction is the number of hours that the space was used during the year for daycare and the denominator is the total number of hours during the year that the space was available for all uses. E file 2011 federal taxes You can use the Daycare Facility Worksheet (for simplified method), near the end of this publication, to help you figure the reduced rate. E file 2011 federal taxes    If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet. E file 2011 federal taxes Daycare Facility If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for that part of your home even if you use the same space for nonbusiness purposes. E file 2011 federal taxes To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. E file 2011 federal taxes You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves. E file 2011 federal taxes You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. E file 2011 federal taxes You do not meet this requirement if your application was rejected or your license or other authorization was revoked. E file 2011 federal taxes Figuring the deduction. E file 2011 federal taxes   If you elect to use the simplified method for your home, figure your deduction as described earlier in Using the Simplified Method under Figuring the Deduction. E file 2011 federal taxes    If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. E file 2011 federal taxes If you also use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier. E file 2011 federal taxes   If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. E file 2011 federal taxes A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. E file 2011 federal taxes You do not have to keep records to show the specific hours the area was used for business. E file 2011 federal taxes You can use the area occasionally for personal reasons. E file 2011 federal taxes However, a room you use only occasionally for business does not qualify for the deduction. E file 2011 federal taxes To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. E file 2011 federal taxes You can compare the hours of business use in a week with the number of hours in a week (168). E file 2011 federal taxes Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2013). E file 2011 federal taxes If you started or stopped using your home for daycare in 2013, you must prorate the number of hours based on the number of days the home was available for daycare. E file 2011 federal taxes Example 1. E file 2011 federal taxes Mary Lake used her basement to operate a daycare business for children. E file 2011 federal taxes She figures the business percentage of the basement as follows. E file 2011 federal taxes Square footage of the basement Square footage of her home = 1,600 3,200 = 50%           She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. E file 2011 federal taxes During the other 12 hours a day, the family could use the basement. E file 2011 federal taxes She figures the percentage of time the basement was used for daycare as follows. E file 2011 federal taxes Number of hours used for daycare (12 x 5 x 50) Total number of hours in the year (24 x 365) = 3,000 8,760 = 34. E file 2011 federal taxes 25%           Mary can deduct 34. E file 2011 federal taxes 25% of any direct expenses for the basement. E file 2011 federal taxes However, because her indirect expenses are for the entire house, she can deduct only 17. E file 2011 federal taxes 13% of the indirect expenses. E file 2011 federal taxes She figures the percentage for her indirect expenses as follows. E file 2011 federal taxes Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 34. E file 2011 federal taxes 25% Percentage for indirect expenses 17. E file 2011 federal taxes 13% Mary completes Form 8829, Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. E file 2011 federal taxes In Part II, Mary figures her deductible expenses. E file 2011 federal taxes She uses the following information to complete Part II. E file 2011 federal taxes Gross income from her daycare business $50,000 Expenses not related to the business use of the home $25,000 Tentative profit $25,000 Rent $8,400 Utilities $850 Painting the basement $500 Mary enters her tentative profit, $25,000, on line 8. E file 2011 federal taxes (This figure is the same as the amount on line 29 of her Schedule C (Form 1040). E file 2011 federal taxes ) The expenses she paid for rent and utilities relate to her entire home. E file 2011 federal taxes Therefore, she enters the amount paid for rent on line 18, column (b), and the amount paid for utilities on line 20, column (b). E file 2011 federal taxes She shows the total of these expenses on line 22, column (b). E file 2011 federal taxes For line 23, she multiplies the amount on line 22, column (b) by the percentage on line 7 and enters the result, $1,585. E file 2011 federal taxes Mary paid $500 to have the basement painted. E file 2011 federal taxes The painting is a direct expense. E file 2011 federal taxes However, because she did not use the basement exclusively for daycare, she must multiply $500 by the percentage of time the basement was used for daycare (34. E file 2011 federal taxes 25% – line 6). E file 2011 federal taxes She enters $171 (34. E file 2011 federal taxes 25% × $500) on line 19, column (a). E file 2011 federal taxes She adds line 22, column (a), and line 23 and enters $1,756 ($171 + $1,585) on line 25. E file 2011 federal taxes This is less than her deduction limit (line 15), so she can deduct the entire amount. E file 2011 federal taxes She follows the instructions to complete the rest of Part II and enters $1,756 on lines 33 and 35. E file 2011 federal taxes She then carries the $1,756 to line 30 of her Schedule C (Form 1040). E file 2011 federal taxes Example 2. E file 2011 federal taxes Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in. E file 2011 federal taxes Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. E file 2011 federal taxes Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. E file 2011 federal taxes The basement and room are 60% of the total area of her home. E file 2011 federal taxes In figuring her expenses, 34. E file 2011 federal taxes 25% of any direct expenses for the basement and room are deductible. E file 2011 federal taxes In addition, 20. E file 2011 federal taxes 55% (34. E file 2011 federal taxes 25% × 60%) of her indirect expenses are deductible. E file 2011 federal taxes Example 3. E file 2011 federal taxes Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, 2013. E file 2011 federal taxes She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year. E file 2011 federal taxes During the other 12 hours a day, the family could still use the basement. E file 2011 federal taxes She figures the percentage of time the basement was used for business as follows. E file 2011 federal taxes Number of hours used for daycare (12 x 5 x 25) Total number of hours during period used (24 x 175) = 1,500 4,200 = 35. E file 2011 federal taxes 71%           Mary can deduct 35. E file 2011 federal taxes 71% of any direct expenses for the basement. E file 2011 federal taxes However, because her indirect expenses are for the entire house, she can deduct only 17. E file 2011 federal taxes 86% of the indirect expenses. E file 2011 federal taxes She figures the percentage for her indirect expenses as follows. E file 2011 federal taxes Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 35. E file 2011 federal taxes 71% Percentage for indirect expenses 17. E file 2011 federal taxes 86% Meals. E file 2011 federal taxes   If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business. E file 2011 federal taxes Claim it as a separate deduction on your Schedule C (Form 1040). E file 2011 federal taxes You can never deduct the cost of food consumed by you or your family. E file 2011 federal taxes You can deduct as a business expense 100% of the actual cost of food consumed by your daycare recipients (see Standard meal and snack rates , later, for an optional method for eligible children) and generally only 50% of the cost of food consumed by your employees. E file 2011 federal taxes However, you can deduct 100% of the cost of food consumed by your employees if its value can be excluded from their wages as a de minimis fringe benefit. E file 2011 federal taxes For more information on meals that meet these requirements, see Meals in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. E file 2011 federal taxes   If you deduct the actual cost of food for your daycare business, keep a separate record (with receipts) of your family's food costs. E file 2011 federal taxes   Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children. E file 2011 federal taxes If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). E file 2011 federal taxes If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C (Form 1040). E file 2011 federal taxes Do not include payments or expenses for your own children if they are eligible for the program. E file 2011 federal taxes Follow this procedure even if you receive a Form 1099-MISC, Miscellaneous Income, reporting a payment from the sponsor. E file 2011 federal taxes Standard meal and snack rates. E file 2011 federal taxes   If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. E file 2011 federal taxes For these purposes: A family daycare provider is a person engaged in the business of providing family daycare. E file 2011 federal taxes Family daycare is childcare provided to eligible children in the home of the family daycare provider. E file 2011 federal taxes The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day. E file 2011 federal taxes Eligible children are minor children receiving family daycare in the home of the family daycare provider. E file 2011 federal taxes Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. E file 2011 federal taxes Eligible children do not include children who receive daycare services for personal reasons of the provider. E file 2011 federal taxes For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child. E file 2011 federal taxes   You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3, later. E file 2011 federal taxes You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. E file 2011 federal taxes If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement. E file 2011 federal taxes   You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. E file 2011 federal taxes If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year. E file 2011 federal taxes However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. E file 2011 federal taxes   If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. E file 2011 federal taxes The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served. E file 2011 federal taxes This information can be recorded in a log similar to the one shown in Exhibit A, near the end of this publication. E file 2011 federal taxes   The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. E file 2011 federal taxes These expenses can be claimed as a separate deduction on your Schedule C (Form 1040). E file 2011 federal taxes     Table 3. E file 2011 federal taxes Standard Meal and Snack Rates1 Location of Family Daycare Provider Breakfast Lunch Dinner Snack States other than Alaska an
Print - Click this link to Print this page

Starting a Business

Listed below are links to basic federal tax information for people who are starting a business, as well as information to assist in making basic business decisions. The list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business.

Information about specific industries can be found on the Industries/Professions Web page.

For information regarding state-level requirements for starting and operating a business, please refer to your state's Web site.

What New Business Owners Need to Know About Federal Taxes

Rate the Small Business and Self-Employed Web Site

Page Last Reviewed or Updated: 04-Mar-2014

The E File 2011 Federal Taxes

E file 2011 federal taxes Publication 901 - Main Content Table of Contents Application of Treaties Tax Exemptions Provided by TreatiesPersonal Services Income Professors, Teachers, and Researchers Students and Apprentices Wages and Pensions Paid by a Foreign Government Explanation of TablesTable 1 Table 2 Table 3 Application of Treaties The United States has income tax treaties with a number of foreign countries. E file 2011 federal taxes Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income taxes on certain items of income they receive from sources within the United States. E file 2011 federal taxes These reduced rates and exemptions vary among countries and specific items of income. E file 2011 federal taxes If there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for Form 1040NR. E file 2011 federal taxes Also see Publication 519. E file 2011 federal taxes Many of the individual states of the United States tax the income of their residents. E file 2011 federal taxes Therefore, you should consult the tax authorities of the state in which you live to find out if that state taxes the income of individuals and, if so, whether the tax applies to any of your income. E file 2011 federal taxes Tax treaties reduce the U. E file 2011 federal taxes S. E file 2011 federal taxes taxes of residents of foreign countries. E file 2011 federal taxes With certain exceptions, they do not reduce the U. E file 2011 federal taxes S. E file 2011 federal taxes taxes of U. E file 2011 federal taxes S. E file 2011 federal taxes citizens or residents. E file 2011 federal taxes U. E file 2011 federal taxes S. E file 2011 federal taxes citizens and residents are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes income tax on their worldwide income. E file 2011 federal taxes Treaty provisions generally are reciprocal (apply to both treaty countries); therefore, a U. E file 2011 federal taxes S. E file 2011 federal taxes citizen or resident who receives income from a treaty country may refer to the tables in this publication to see if a tax treaty might affect the tax to be paid to that foreign country. E file 2011 federal taxes Foreign taxing authorities sometimes require certification from the U. E file 2011 federal taxes S. E file 2011 federal taxes Government that an applicant filed an income tax return as a U. E file 2011 federal taxes S. E file 2011 federal taxes citizen or resident, as part of the proof of entitlement to the treaty benefits. E file 2011 federal taxes See Form 8802, Application for United States Residency Certification, to request a certification. E file 2011 federal taxes Disclosure of a treaty-based position that reduces your tax. E file 2011 federal taxes   If you take the position that any U. E file 2011 federal taxes S. E file 2011 federal taxes tax is overruled or otherwise reduced by a U. E file 2011 federal taxes S. E file 2011 federal taxes treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. E file 2011 federal taxes If you are not required to file a return because of your treaty-based position, you must file a return anyway to report your position. E file 2011 federal taxes The filing of Form 8833 does not apply to a reduced rate of withholding tax on noneffectively connected income, such as dividends, interest, rents or royalties, or to a reduced rate of tax on pay received for services performed as an employee, including pensions, annuities, and social security. E file 2011 federal taxes For more information, see Publication 519 and the Form 8833 instructions. E file 2011 federal taxes   If you fail to file Form 8833, you may have to pay a $1,000 penalty. E file 2011 federal taxes Corporations are subject to a $10,000 penalty for each failure. E file 2011 federal taxes Tax Exemptions Provided by Treaties In addition to the tables in the back of this publication, this publication contains discussions of the exemptions from tax and certain other effects of the tax treaties on the following types of income. E file 2011 federal taxes Pay for certain personal services performed in the United States. E file 2011 federal taxes Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time. E file 2011 federal taxes Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience. E file 2011 federal taxes Wages, salaries, and pensions paid by a foreign government. E file 2011 federal taxes Personal Services Income Pay for certain personal services performed in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if you are a resident of one of the countries discussed below, if you are in the United States for a limited number of days, and if you meet certain other conditions. E file 2011 federal taxes For this purpose, the word “day” means a day during any part of which you are physically present in the United States. E file 2011 federal taxes Terms defined. E file 2011 federal taxes   Several terms appear in many of the discussions that follow. E file 2011 federal taxes The exact meanings of the terms are determined by the particular tax treaty under discussion; thus, the meanings vary among treaties. E file 2011 federal taxes The definitions that follow are, therefore, general definitions that may not give the exact meaning intended by a particular treaty. E file 2011 federal taxes   The terms fixed base and permanent establishment generally mean a fixed place of business, such as a place of management, a branch, an office, a factory, a warehouse, or a mining site, through which an enterprise carries on its business. E file 2011 federal taxes   The term borne by generally means having ultimate financial accounting responsibility for, or providing the monetary resources for, an expenditure or payment, even if another entity in another location actually made the expenditure or payment. E file 2011 federal taxes Australia Income that residents of Australia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Pay that residents of Australia receive for labor or personal services performed in the United States as employees (dependent personal services), including services as a director of a company, is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if: The residents are in the United States for no more than 183 days during the tax year, The pay is paid by, or on behalf of, an employer or company that is not a resident of the United States, and The pay is not deductible in determining the taxable income of the trade or business of the employer (or company) in the United States. E file 2011 federal taxes These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Australia who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Austria Income that residents of Austria receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Austria receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Austria who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Income received by a resident of Austria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes Bangladesh Income that residents of Bangladesh receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, or Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Bangladesh receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to pubic entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Bangladesh who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Regardless of these limits, income of Bangladesh entertainers is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if their visit to the United States is wholly or mainly supported by public funds of Bangladesh, its political subdivisions, or local authorities. E file 2011 federal taxes Income received from employment as a member of the regular complement of a ship or an aircraft operated by a Bangladesh enterprise in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes If the ship or aircraft is operated by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise, the income is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes If the resident of Bangladesh is a shareholder in a U. E file 2011 federal taxes S. E file 2011 federal taxes corporation, these exemptions do not apply to directors' fees received as a member of the board of directors of the U. E file 2011 federal taxes S. E file 2011 federal taxes corporation. E file 2011 federal taxes The amount received by the shareholder that is more than the amount paid to a director that is not a shareholder is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax at the rate of 15%. E file 2011 federal taxes Barbados Income that residents of Barbados receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 89 days during the tax year, Earn net income for independent services provided to U. E file 2011 federal taxes S. E file 2011 federal taxes residents that is not more than $5,000 (there is no dollar limit if the contractors are not U. E file 2011 federal taxes S. E file 2011 federal taxes residents), and Do not have a regular base available in the United States for performing the services. E file 2011 federal taxes If they have a regular base available in the United States but otherwise meet the conditions for exemption, they are taxed only on the income attributable to the regular base. E file 2011 federal taxes Income that residents of Barbados receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the residents meet four requirements. E file 2011 federal taxes They are in the United States for no more than 183 days during the calendar year. E file 2011 federal taxes The income earned in the calendar year in the United States is not more than $5,000. E file 2011 federal taxes Their income is paid by or for an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The income is not borne by a permanent establishment or regular base of the employer in the United States. E file 2011 federal taxes Income of a Barbadian resident from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes These exemptions do not apply to Barbadian resident public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $250 per day or $4,000 in the tax year, not including reimbursed expenses, from their entertainment activities in the United States. E file 2011 federal taxes However, the exemptions do apply regardless of these limits on gross receipts if the entertainer's visit to the United States is substantially supported by Barbadian public funds or if the entertainer's services are provided to a nonprofit organization. E file 2011 federal taxes Belgium Income that residents of Belgium receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. E file 2011 federal taxes Income that residents of Belgium receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to directors' fees and similar payments received by a resident of Belgium for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Belgium who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Income received by a resident of Belgium for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes Bulgaria Income that residents of Bulgaria receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. E file 2011 federal taxes Under Article 5 (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. E file 2011 federal taxes Income that residents of Bulgaria receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to directors' fees and similar payments received by a resident of Bulgaria as a member of the board of directors of a U. E file 2011 federal taxes S. E file 2011 federal taxes company. E file 2011 federal taxes Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Bulgaria who earn more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Income received by a resident of Bulgaria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes Canada Income that residents of Canada receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article VII (Business Profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. E file 2011 federal taxes Under Article V (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. E file 2011 federal taxes Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if it is not more than $10,000 for the year. E file 2011 federal taxes If the income is more than $10,000 for the year, it is exempt only if: The residents are present in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and The income is not paid by, or on behalf of, a U. E file 2011 federal taxes S. E file 2011 federal taxes resident, and is not borne by a permanent establishment in the United States. E file 2011 federal taxes Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Canada who derive more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the calendar year are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes However, this article does not apply to athletes participating in team sports in leagues with regularly scheduled games in both Canada and the United States. E file 2011 federal taxes Pay received by a resident of Canada for employment regularly done in more than one country on a ship, aircraft, motor vehicle, or train operated by a Canadian resident is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes China, People's Republic of Income that residents of the People's Republic of China receive for personal services as independent contractors or self-employed individuals (independent personal services) that they perform during the tax year in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are present in the United States for no more than 183 days in the calendar year, and Do not have a fixed base regularly available in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. E file 2011 federal taxes Pay received by residents of the People's Republic of China for services performed as employees (dependent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if: The residents are present in the United States for no more than 183 days in the calendar year, The pay is paid by or for an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident, and The pay is not borne by a permanent establishment or fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to directors' fees for service on the board of directors of a U. E file 2011 federal taxes S. E file 2011 federal taxes corporation. E file 2011 federal taxes These exemptions generally do not apply to income received as a public entertainer (such as a theater, motion picture, radio, or television artist, musician, or athlete). E file 2011 federal taxes However, income of athletes or public entertainers from China participating in a cultural exchange program agreed upon by the U. E file 2011 federal taxes S. E file 2011 federal taxes and Chinese governments is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Commonwealth of Independent States Income that residents of a C. E file 2011 federal taxes I. E file 2011 federal taxes S. E file 2011 federal taxes member receive for performing personal services in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if those residents are in the United States for no more than 183 days during the tax year. E file 2011 federal taxes Pay received by an employee who is a member of the regular complement of a ship or aircraft operated in international traffic by a C. E file 2011 federal taxes I. E file 2011 federal taxes S. E file 2011 federal taxes member or a resident of a C. E file 2011 federal taxes I. E file 2011 federal taxes S. E file 2011 federal taxes member is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Cyprus Income that residents of Cyprus receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are present in the United States for less than 183 days in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. E file 2011 federal taxes Pay received by residents of Cyprus from services performed as employees (dependent personal services), including services as an officer of a corporation, is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if: The residents are in the United States for less than 183 days during the tax year, The pay is paid by or for an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident, and The pay is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. E file 2011 federal taxes Pay received by a Cyprus resident for performing personal services as an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of Cyprus is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes These exemptions do not apply to Cyprus resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $500 per day or $5,000 for the tax year, not including reimbursed expenses, from their entertainment activities in the United States. E file 2011 federal taxes Directors' fees received by residents of Cyprus for service on the board of directors of a U. E file 2011 federal taxes S. E file 2011 federal taxes corporation are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax to the extent of a reasonable fixed amount payable to all directors for each day of attendance at directors' meetings held in the United States. E file 2011 federal taxes Czech Republic Income that residents of the Czech Republic receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are present in the United States for no more than 183 days in any 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed only on income attributable to the fixed base. E file 2011 federal taxes Income that residents of the Czech Republic receive for employment in the United States (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following three requirements are met. E file 2011 federal taxes The resident is present in the United States for no more than 183 days in any 12-month period. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to income residents of the Czech Republic receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year. E file 2011 federal taxes Regardless of these limits, income of Czech entertainers and sportsmen is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if their visit to the United States is substantially supported by public funds of the Czech Republic, its political subdivisions, or local authorities, or the visit is made pursuant to a specific arrangement between the United States and the Czech Republic. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of the Czech Republic as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes Income from employment as a member of the regular complement of a ship or aircraft operated by a Czech enterprise in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes If the ship or aircraft is operated by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise, the income is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Denmark Income that residents of Denmark receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Denmark receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of Denmark as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, and athletes) from Denmark who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Income received by a resident of Denmark for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes Egypt Income that residents of Egypt receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they are in the United States for no more than 89 days during the tax year. E file 2011 federal taxes Income that residents of Egypt receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet four requirements. E file 2011 federal taxes They are in the United States for no more than 89 days during the tax year. E file 2011 federal taxes They are employees of a resident of, or a permanent establishment in, Egypt. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes Their income is subject to Egyptian tax. E file 2011 federal taxes This exemption does not apply to pay received by a resident of Egypt who is an employee and member of the regular complement of a ship or an aircraft operated in international traffic by a resident of the United States. E file 2011 federal taxes These exemptions do not apply to Egyptian resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes), who earn income for services as public entertainers if the gross amount of the income is more than $400 for each day they are in the United States performing the services. E file 2011 federal taxes Estonia Income that residents of Estonia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Estonia receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following requirements are met. E file 2011 federal taxes The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of Estonia as a member of the board of directors or similar body of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a United States enterprise is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes These exemptions do not apply to income residents of Estonia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. E file 2011 federal taxes Regardless of these limits, income of Estonian entertainers or athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if their visit to the United States is wholly or mainly supported by public funds of Estonia, its political subdivisions, or local authorities. E file 2011 federal taxes Finland Income that residents of Finland receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Finland receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet three requirements. E file 2011 federal taxes They are in the United States for no more than 183 days during any 12-month period. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes Their income is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to pay received by a resident of Finland who is an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of the United States. E file 2011 federal taxes These exemptions do not apply to income residents of Finland receive as public entertainers or sportsmen if the gross income, including reimbursed expenses, is more than $20,000 for their personal activities in the United States during the calendar year. E file 2011 federal taxes France Income that residents of France receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of France receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet three requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes Income for services performed by a resident of France as an employee and member of the regular complement of a ship or an aircraft operated in international traffic is exempt from tax in the United States. E file 2011 federal taxes These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, or musicians), or sportsmen from France who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Regardless of these limits, income of French entertainers or sportsmen is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if their visit is principally supported by public funds of France. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of France as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes Germany Income that residents of Germany receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. E file 2011 federal taxes Income that residents of Germany receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the residents meet three requirements. E file 2011 federal taxes They are in the United States for no more than 183 days during the calendar year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes The income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes Pay received by a resident of Germany for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes The exemption does not apply to directors' fees and other similar payments received by a resident of Germany for services performed in the United States as a member of the board of directors of a company resident in the United States. E file 2011 federal taxes Income residents of Germany receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax if their gross receipts, including reimbursed expenses, from their entertainment activities in the United States are more than $20,000 during the calendar year. E file 2011 federal taxes Income of German entertainers or athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if their visit to the United States is substantially supported by public funds of Germany, its political subdivisions, or local authorities. E file 2011 federal taxes Greece Income that residents of Greece receive for labor or personal services (including practicing liberal and artistic professions) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they are in the United States for no more than 183 days during the tax year and the pay is not more than $10,000. E file 2011 federal taxes The pay, regardless of amount, is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if it is for labor or personal services performed as employees of, or under contract with, a resident of Greece or a Greek corporation or other entity of Greece, and if the residents are in the United States for no more than 183 days during the tax year. E file 2011 federal taxes Hungary Income that residents of Hungary receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available in the United States. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Hungary receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet three requirements. E file 2011 federal taxes They are in the United States for no more than 183 days during the tax year. E file 2011 federal taxes Their income is paid by or on behalf of an employer who is not a resident of the United States. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes Pay received by an employee who is a member of the regular complement of a ship or aircraft operated by a Hungarian enterprise in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes If the ship or aircraft is operated by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise, the pay is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Iceland Income that residents of Iceland receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. E file 2011 federal taxes Income that residents of Iceland receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to directors' fees and similar payments received by a resident of Iceland as a member of the board of directors of a U. E file 2011 federal taxes S. E file 2011 federal taxes company. E file 2011 federal taxes Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Iceland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Income received by a resident of Iceland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes India Income that residents of India receive for performing personal services in the United States during the tax year as independent contractors or self-employed individuals (independent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are present in the United States for no more than 89 days during the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed only on income attributable to the fixed base. E file 2011 federal taxes Income that residents of India receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet three requirements. E file 2011 federal taxes They are present in the United States for no more than 183 days during the tax year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States. E file 2011 federal taxes The exemption does not apply to pay received by a resident of India for services performed as an employee aboard a ship or aircraft operated in international traffic by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by an Indian resident as a member of the board of directors of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes These exemptions do not apply to income residents of India receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their net income is more than $1,500 during the tax year for their entertainment activities in the United States. E file 2011 federal taxes Regardless of this limit, the income of Indian entertainers and athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if their visit to the United States is wholly or substantially supported from the public funds of the Indian Government, its political subdivisions, or local authorities. E file 2011 federal taxes Indonesia Income that residents of Indonesia receive for performing personal services as individual contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are present in the United States for no more than 119 days during any consecutive 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed only on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Indonesia receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet three requirements. E file 2011 federal taxes They are present in the United States no more than 119 days during any consecutive 12-month period. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes The income is not borne or reimbursed by a permanent establishment the employer has in the United States. E file 2011 federal taxes Pay received by an individual for services performed as an employee aboard a ship or aircraft operated by an Indonesian resident in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the individual is a member of the regular complement of the ship or aircraft. E file 2011 federal taxes These exemptions do not apply to income residents of Indonesia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their gross receipts, including reimbursed expenses, are more than $2,000 during any consecutive 12-month period. E file 2011 federal taxes Regardless of these limits, income of Indonesian entertainers and athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if their visit to the United States is substantially supported or sponsored by the Indonesian Government and the Indonesian competent authority certifies that the entertainers or athletes qualify for this exemption. E file 2011 federal taxes Ireland Income that residents of Ireland receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Ireland receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of Ireland as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes However, amounts received for attending meetings in Ireland are not subject to U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes Income received by a resident of Ireland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax. E file 2011 federal taxes These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Ireland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Israel Income that residents of Israel receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they are in the United States for no more than 182 days during the tax year. E file 2011 federal taxes Income that residents of Israel receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet four requirements. E file 2011 federal taxes They are in the United States for no more than 182 days during the tax year. E file 2011 federal taxes They are employees of a resident of, or a permanent establishment in, Israel. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes Their income is subject to Israeli tax. E file 2011 federal taxes The exemption does not apply to pay received by an employee for labor or personal services performed as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes These exemptions do not apply to income that residents of Israel receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes), if the gross amount of the income is more than $400 for each day they are in the United States performing the services. E file 2011 federal taxes Italy Income that residents of Italy receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Italy receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following requirements are met. E file 2011 federal taxes The residents are in the United States for no more than 183 days during the tax year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of Italy for services performed in the United States as a member of the board of directors of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Pay received for employment regularly exercised aboard a ship or aircraft operated by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes These exemptions do not apply to income residents of Italy receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) if they are present in the United States for more than 90 days during the tax year or their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year for their entertainment activities in the United States. E file 2011 federal taxes Jamaica Income that residents of Jamaica receive for the performance of personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 89 days during the tax year, Do not have a fixed base regularly available to them in the United States for performing their services, and Earn net income for those services that is not more than $5,000 during the tax year if the income is from a U. E file 2011 federal taxes S. E file 2011 federal taxes contractor. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed only on the income that is attributable to the fixed base. E file 2011 federal taxes There is no dollar limit for condition (3) if the contractor is from a country other than the United States. E file 2011 federal taxes Income that residents of Jamaica receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet four requirements. E file 2011 federal taxes They are in the United States for no more than 183 days during the tax year. E file 2011 federal taxes Their income is paid by or for an employer who is not a resident of the United States. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes Their net income received for the services is not more than $5,000 during the tax year. E file 2011 federal taxes Pay received from employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a Jamaican enterprise is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes If the ship or aircraft is operated by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise, the pay is subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes These exemptions do not apply to income that residents of Jamaica receive for performing services in the United States as entertainers, such as theater, motion picture, radio, or television artists, musicians, or athletes, if the gross receipts (excluding reimbursements for expenses) from the services are more than $400 a day or $5,000 for the tax year. E file 2011 federal taxes Directors' fees received by residents of Jamaica for services performed in the United States as members of boards of directors of U. E file 2011 federal taxes S. E file 2011 federal taxes corporations are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the fees (excluding reimbursed expenses) are not more than $400 per day for each day the directors are present in the United States to perform the services. E file 2011 federal taxes Japan Income that residents of Japan receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (business profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. E file 2011 federal taxes Income that residents of Japan receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to directors' fees and similar payments received by a resident of Japan for services performed as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes The exemption does not apply to a resident of Japan who performs services as an employee aboard a ship or an aircraft operated in international traffic by a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Japan who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Kazakhstan Income that residents of Kazakhstan receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if: The residents are in the United States for no more than 183 days in any consecutive 12-month period, and The income is not attributable to a fixed base in the United States which is regularly available to the residents. E file 2011 federal taxes If the residents have a fixed base available, they are taxed only on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Kazakhstan receive for employment in the United States (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following three requirements are met. E file 2011 federal taxes The resident is in the United States for no more than 183 days in any 12-month period. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes Income derived by a resident of Kazakhstan from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of Kazakhstan as a member of the board of directors or similar body of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Korea, South Income that residents of South Korea receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the residents: Are in the United States for no more than 182 days during the tax year, Earn income for those services that is not more than $3,000 during the tax year, and Do not maintain a fixed base in the United States for more than 182 days during the tax year. E file 2011 federal taxes If they maintain a fixed base in the United States for more than 182 days, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Korea receive for labor or personal services performed in the United States as employees (dependent personal services), including pay for services performed as an officer of a corporation, is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the residents meet four requirements. E file 2011 federal taxes They are in the United States for no more than 182 days during the tax year. E file 2011 federal taxes They are employees of a resident of Korea or of a permanent establishment maintained in Korea. E file 2011 federal taxes Their compensation is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes Their income for those services is not more than $3,000. E file 2011 federal taxes Pay received by employees who are members of the regular complement of a ship or aircraft operated by a resident of Korea in international traffic is exempt. E file 2011 federal taxes Latvia Income that residents of Latvia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed only on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Latvia receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following requirements are met. E file 2011 federal taxes The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise. E file 2011 federal taxes The exemptions do not apply to directors' fees and similar payments received by a resident of Latvia as a member of the board of directors or similar body of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The exemptions do not apply to income residents of Latvia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. E file 2011 federal taxes Regardless of these limits, income of Latvian entertainers or athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if their visit to the United States is wholly or mainly supported by public funds of Latvia, its political subdivisions, or local authorities. E file 2011 federal taxes Lithuania Income that residents of Lithuania receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed only on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Lithuania receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following requirements are met. E file 2011 federal taxes The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise. E file 2011 federal taxes The exemptions do not apply to directors' fees and similar payments received by a resident of Lithuania as a member of the board of directors or similar body of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The exemptions do not apply to income residents of Lithuania receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. E file 2011 federal taxes Regardless of these limits, income of Lithuanian entertainers or athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if their visit to the United States is wholly or mainly supported by public funds of Lithuania, its political subdivisions, or local authorities. E file 2011 federal taxes Luxembourg Income that residents of Luxembourg receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if they do not have a fixed base regularly available to them in the United States for performing the services. E file 2011 federal taxes If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Luxembourg receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to pay received for employment exercised continuously or predominantly aboard a ship or aircraft operated in international traffic by a U. E file 2011 federal taxes S. E file 2011 federal taxes enterprise. E file 2011 federal taxes The exemptions do not apply to directors' fees and similar payments received by a resident of Luxembourg for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes The exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Luxembourg who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. E file 2011 federal taxes Malta Income that residents of Malta receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. E file 2011 federal taxes Under that provision, business profits are exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax unless the individual has a permanent establishment in the United States. E file 2011 federal taxes If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. E file 2011 federal taxes Income that residents of Malta receive for services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet the following requirements. E file 2011 federal taxes They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. E file 2011 federal taxes Their income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes The exemption does not apply to directors' fees and similar payments received by a resident of Malta for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. E file 2011 federal taxes Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Malta who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. E file 2011 federal taxes S. E file 2011 federal taxes tax. E file 2011 federal taxes Income received by a resident of Malta for employment aboard a ship or an aircraft operated in international traffic is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the individual is a member of the regular complement of the ship or aircraft. E file 2011 federal taxes Mexico Income that residents of Mexico receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 182 days in a 12-month period, and Do not have a fixed base that they regularly use for performing the services. E file 2011 federal taxes If they have a fixed base available, they are taxed only on income attributable to the fixed base. E file 2011 federal taxes Income that residents of Mexico receive for employment in the United States (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if the following three requirements are met. E file 2011 federal taxes The resident is present in the United States for no more than 183 days in a 12-month period. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a resident of the United States. E file 2011 federal taxes The income is not borne by a permanent establishment or fixed base that the employer has in the United States. E file 2011 federal taxes These exemptions do not apply to directors' fees and similar payments received by a resident of Mexico for services performed outside Mexico as a director or overseer of a company that is a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes These exemptions do not apply to income residents of Mexico receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if the income, including reimbursed expenses, is more than $3,000 during the tax year for their entertainment activities in the United States. E file 2011 federal taxes This includes income from activities performed in the United States relating to the entertainer or athlete's reputation, such as endorsements of commercial products. E file 2011 federal taxes Regardless of this limit, the income of Mexican entertainers and athletes is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes tax if their visit to the United States is substantially supported by public funds of Mexico, its political subdivisions, or local authorities. E file 2011 federal taxes Morocco Income that residents of Morocco receive for performing personal services as independent contractors or as self-employed persons (independent personal services) in the United States during the tax year is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents: Are in the United States for no more than 182 days during the tax year, Do not maintain a fixed base in the United States for more than 89 days during the tax year, and Earn total income for those services that is not more than $5,000. E file 2011 federal taxes If they have a fixed base in the United States for more than 89 days, they are taxed only on the income attributable to the fixed base. E file 2011 federal taxes Income that residents of Morocco receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the residents meet three requirements. E file 2011 federal taxes They are in the United States for less than 183 days during the tax year. E file 2011 federal taxes They are employees of a resident of Morocco or of a permanent establishment of a resident of a country other than Morocco if the permanent establishment is located in Morocco. E file 2011 federal taxes Their income is not borne by a permanent establishment that the employer has in the United States. E file 2011 federal taxes Compensation received for services performed by a member of the board of directors of a corporation does not qualify for this exemption. E file 2011 federal taxes Income received by an individual for performing labor or personal services as an employee aboard a ship or an aircraft operated in international traffic by a Moroccan resident is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the individual is a member of the regular complement of the ship or aircraft. E file 2011 federal taxes These exemptions do not apply to income received for services performed in the United States by professional entertainers, including theater, film, radio, and television performers, musicians, and athletes, unless the services are performed by, or for the account of, a Moroccan nonprofit organization. E file 2011 federal taxes Netherlands Income that residents of the Netherlands receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the income is not attributable to a fixed base in the United States that is regularly available for performing the services. E file 2011 federal taxes Income that residents of the Netherlands receive for employment in the United States (dependent personal services) is exempt from U. E file 2011 federal taxes S. E file 2011 federal taxes income tax if the following three requirements are met. E file 2011 federal taxes The resident is in the United States for no more than 183 days during the tax year. E file 2011 federal taxes The income is paid by, or on behalf of, an employer who is not a U. E file 2011 federal taxes S. E file 2011 federal taxes resident. E file 2011 federal taxes The income is not borne by a permanent establishment or fixed base the employer has in the United States. E file 2011 federal taxes Income received by a Netherlands resident for employment as a member of the regular complement of a ship or