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

Efile 1040ez

File 2009 Tax ReturnHow To File 1040nrIrs Forms 20122010 Tax Return Forms1040 Ez FormFederal Tax Return 1040ezState Income Tax Form 2012How Do I File 2012 TaxesFree Tax PrepEz Tax FormHow To Fill Out State Tax FormCan I File A 1040ez2012.taxhowFiling Taxes LateTurbo Tax 20062012 Tax Return Form 1040Instructions For Form 1040xH&r Block Free 1040ezHow Do I File An Amended Tax Return For 2011Free File TaxesIrs Gov Tax Forms 2012Download A 1040ez Federal Tax FormH&r Tax SoftwareFree FileFile Taxes For FreeIrs Vita Sites1040ez Online1040x Fillable FormHow Do I File An Amended Tax Return For 2013MyfreetaxesAmended Tax ReturnMy Free Tax.comFree State Return FilingFree File Tax ExtensionAmending Federal Tax ReturnHr Block Tax Software1040x Electronic Filing2012 Taxes Online FreeIrs Free Tax Filing 2012Irs Form 1040x

Efile 1040ez

Efile 1040ez Publication 463 - Introductory Material Table of Contents Future Developments What's New Reminder IntroductionUsers of employer-provided vehicles. Efile 1040ez Volunteers. Efile 1040ez Ordering forms and publications. Efile 1040ez Tax questions. Efile 1040ez Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 463, such as legislation enacted after it was published, go to www. Efile 1040ez irs. Efile 1040ez gov/pub463. Efile 1040ez What's New Standard mileage rate. Efile 1040ez  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Efile 1040ez Car expenses and use of the standard mileage rate are explained in chapter 4. Efile 1040ez Depreciation limits on cars, trucks, and vans. Efile 1040ez  For 2013, the first-year limit on the total depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Efile 1040ez For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Efile 1040ez Depreciation limits are explained in chapter 4. Efile 1040ez Section 179 deduction. Efile 1040ez  For 2013, the section 179 deduction limit on qualifying property purchases (including cars, trucks, and vans) is a total of $500,000 and the limit on those purchases at which the deduction begins to be phased out is $2,000,000. Efile 1040ez Section 179 Deduction is explained in chapter 4. Efile 1040ez Special depreciation allowance. Efile 1040ez  For 2013, the special (“bonus”) depreciation allowance on qualified property (including cars, trucks, and vans) remains at 50%. Efile 1040ez Special Depreciation Allowance is explained in chapter 4. Efile 1040ez Reminder Photographs of missing children. Efile 1040ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Efile 1040ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Efile 1040ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Efile 1040ez Per diem rates. Efile 1040ez  The IRS no longer updates Publication 1542, Per Diem Rates (For Travel Within the Continental United States). Efile 1040ez Instead, current per diem rates may be found on the U. Efile 1040ez S. Efile 1040ez General Services Administration (GSA) website at www. Efile 1040ez gsa. Efile 1040ez gov/perdiem. Efile 1040ez Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Efile 1040ez An ordinary expense is one that is common and accepted in your trade or business. Efile 1040ez A necessary expense is one that is helpful and appropriate for your business. Efile 1040ez An expense does not have to be required to be considered necessary. Efile 1040ez This publication explains: What expenses are deductible, How to report them on your return, What records you need to prove your expenses, and How to treat any expense reimbursements you may receive. Efile 1040ez Who should use this publication. Efile 1040ez   You should read this publication if you are an employee or a sole proprietor who has business-related travel, entertainment, gift, or transportation expenses. Efile 1040ez Users of employer-provided vehicles. Efile 1040ez   If an employer-provided vehicle was available for your use, you received a fringe benefit. Efile 1040ez Generally, your employer must include the value of the use or availability of the vehicle in your income. Efile 1040ez However, there are exceptions if the use of the vehicle qualifies as a working condition fringe benefit (such as the use of a qualified nonpersonal use vehicle). Efile 1040ez   A working condition fringe benefit is any property or service provided to you by your employer for which you could deduct the cost as an employee business expense if you had paid for it. Efile 1040ez   A qualified nonpersonal use vehicle is one that is not likely to be used more than minimally for personal purposes because of its design. Efile 1040ez See Qualified nonpersonal use vehicles under Actual Car Expenses in chapter 4. Efile 1040ez   For information on how to report your car expenses that your employer did not provide or reimburse you for (such as when you pay for gas and maintenance for a car your employer provides), see Vehicle Provided by Your Employer in chapter 6. Efile 1040ez Who does not need to use this publication. Efile 1040ez   Partnerships, corporations, trusts, and employers who reimburse their employees for business expenses should refer to their tax form instructions and chapter 11 of Publication 535, Business Expenses, for information on deducting travel, meals, and entertainment expenses. Efile 1040ez   If you are an employee, you will not need to read this publication if all of the following are true. Efile 1040ez You fully accounted to your employer for your work-related expenses. Efile 1040ez You received full reimbursement for your expenses. Efile 1040ez Your employer required you to return any excess reimbursement and you did so. Efile 1040ez There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Efile 1040ez If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Efile 1040ez If you would like more information on reimbursements and accounting to your employer, see chapter 6 . Efile 1040ez    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. Efile 1040ez Volunteers. Efile 1040ez   If you perform services as a volunteer worker for a qualified charity, you may be able to deduct some of your costs as a charitable contribution. Efile 1040ez See Out-of-Pocket Expenses in Giving Services in Publication 526, Charitable Contributions, for information on the expenses you can deduct. Efile 1040ez Comments and suggestions. Efile 1040ez   We welcome your comments about this publication and your suggestions for future editions. Efile 1040ez   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Efile 1040ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Efile 1040ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Efile 1040ez   You can send your comments from www. Efile 1040ez irs. Efile 1040ez gov/formspubs/. Efile 1040ez Click on “More Information” and then on “Comment on Tax Forms and Publications. Efile 1040ez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Efile 1040ez Ordering forms and publications. Efile 1040ez   Visit www. Efile 1040ez irs. Efile 1040ez gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Efile 1040ez Internal Revenue Service 1201 N. Efile 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Efile 1040ez   If you have a tax question, check the information available on IRS. Efile 1040ez gov or call 1-800-829-1040. Efile 1040ez We cannot answer tax questions sent to either of the above addresses. Efile 1040ez Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 529 Miscellaneous Deductions 535 Business Expenses 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization See chapter 7, How To Get Tax Help , for information about getting these publications and forms. Efile 1040ez Prev  Up  Next   Home   More Online Publications
Español

Know the Steps to Take

A valid U.S. passport is required to enter and leave most foreign countries. Only the U.S. Department of State has the authority to grant, issue, or verify U.S. passports.

The Passport Services Office provides information and services to American citizens about how to obtain, replace or change a passport. To obtain a passport for the first time, you need to go in person to one of 7,000 passport acceptance facilities located throughout the United States with:

  • Two photographs of you taken within the last six months
  • Proof of U.S. citizenship
  • A valid form of photo identification (such as a driver's license)

Acceptance facilities include many Federal, state and probate courts, post offices, some public libraries and a number of county and municipal offices. There are also 20 regional passport agencies, and one Gateway City Agency, which serve customers who are traveling within two weeks (14 days), or who need foreign visas for travel. Appointments are required in such cases.

All American citizens must now have a valid U.S. passport to re-enter the country, regardless of what nations they have been visiting while traveling.

The Efile 1040ez

Efile 1040ez Publication 516 - Main Content Table of Contents U. Efile 1040ez S. Efile 1040ez Tax ReturnFiling Information Foreign Bank Accounts U. Efile 1040ez S. Efile 1040ez Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Efile 1040ez U. Efile 1040ez S. Efile 1040ez Tax Return Filing Information If you are a U. Efile 1040ez S. Efile 1040ez citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Efile 1040ez However, the special rules explained in the following discussions may apply to you. Efile 1040ez See also Tax Treaty Benefits, later. Efile 1040ez When To File and Pay Most individual tax returns cover a calendar year, January through December. Efile 1040ez The regular due date for these tax returns is April 15 of the following year. Efile 1040ez If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Efile 1040ez If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Efile 1040ez You must pay interest on any tax not paid by the regular due date. Efile 1040ez Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Efile 1040ez See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Efile 1040ez If your return is filed late, the postmark or delivery service date does not determine the date of filing. Efile 1040ez In that case, your return is considered filed when it is received by the IRS. Efile 1040ez Extensions You may be able to get an extension of time to file your return and pay your tax. Efile 1040ez Automatic 2-month extension. Efile 1040ez   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Efile 1040ez S. Efile 1040ez citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Efile 1040ez To get this extension, you must attach a statement to your return explaining how you qualified. Efile 1040ez You will owe interest on any tax not paid by the regular due date of your return. Efile 1040ez Married taxpayers. Efile 1040ez   If you file a joint return, either you or your spouse can qualify for the automatic extension. Efile 1040ez If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Efile 1040ez Additional extension. Efile 1040ez   You can apply for an additional extension of time to file your return by filing Form 4868. Efile 1040ez You must file Form 4868 by the due date for your income tax return. Efile 1040ez   Generally, you must file it by April 15. Efile 1040ez However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Efile 1040ez Check the box on line 8 of Form 4868. Efile 1040ez Payment of tax. Efile 1040ez   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Efile 1040ez The late-payment penalty applies if, through withholding, etc. Efile 1040ez , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Efile 1040ez Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Efile 1040ez Electronic filing. Efile 1040ez   You can file for the additional extension by phone, using your home computer, or through a tax professional. Efile 1040ez See Form 4868 for more information. Efile 1040ez Limit on additional extensions. Efile 1040ez   You generally cannot get a total extension of more than 6 months. Efile 1040ez However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Efile 1040ez   For more information, see Publication 54. Efile 1040ez Foreign Bank Accounts You must file Form TD F 90-22. Efile 1040ez 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Efile 1040ez This applies if the combined assets in the account(s) were more than $10,000. Efile 1040ez Do not include accounts in a U. Efile 1040ez S. Efile 1040ez military banking facility operated by a U. Efile 1040ez S. Efile 1040ez financial institution. Efile 1040ez File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Efile 1040ez Do not attach it to Form 1040. Efile 1040ez If you are required to file Form TD F 90-22. Efile 1040ez 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Efile 1040ez You also may be required to file Form 8938 with your U. Efile 1040ez S. Efile 1040ez income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Efile 1040ez For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Efile 1040ez For more information, see Form 8938 and its instructions. Efile 1040ez U. Efile 1040ez S. Efile 1040ez Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Efile 1040ez If you are a U. Efile 1040ez S. Efile 1040ez citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Efile 1040ez S. Efile 1040ez law. Efile 1040ez This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Efile 1040ez If you are a nonresident alien, your income from sources outside the United States is not subject to U. Efile 1040ez S. Efile 1040ez tax. Efile 1040ez Foreign Earned Income Exclusion Employees of the U. Efile 1040ez S. Efile 1040ez Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Efile 1040ez S. Efile 1040ez Government as an employee. Efile 1040ez But see Other Employment, later. Efile 1040ez Special Situations In the following two situations, your pay is from the U. Efile 1040ez S. Efile 1040ez Government and does not qualify for the foreign earned income exclusion. Efile 1040ez U. Efile 1040ez S. Efile 1040ez agency reimbursed by foreign country. Efile 1040ez   If you are a U. Efile 1040ez S. Efile 1040ez Government employee paid by a U. Efile 1040ez S. Efile 1040ez agency to perform services in a foreign country, your pay is from the U. Efile 1040ez S. Efile 1040ez Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Efile 1040ez This is true even if the U. Efile 1040ez S. Efile 1040ez agency is reimbursed by the foreign government. Efile 1040ez Employees of post exchanges, etc. Efile 1040ez   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Efile 1040ez S. Efile 1040ez Government, the earnings you receive are paid by the U. Efile 1040ez S. Efile 1040ez Government. Efile 1040ez This is true whether they are paid from appropriated or nonappropriated funds. Efile 1040ez These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Efile 1040ez Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Efile 1040ez Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Efile 1040ez In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Efile 1040ez S. Efile 1040ez citizens or green card holders. Efile 1040ez Consequently, if you are a U. Efile 1040ez S. Efile 1040ez citizen or green card holder, you will generally not be entitled to reduce your U. Efile 1040ez S. Efile 1040ez tax on your government pay. Efile 1040ez If you are neither a U. Efile 1040ez S. Efile 1040ez citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Efile 1040ez Review the treaty text carefully. Efile 1040ez U. Efile 1040ez S. Efile 1040ez citizens must always file Form 1040. Efile 1040ez Non-U. Efile 1040ez S. Efile 1040ez citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Efile 1040ez If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Efile 1040ez Most income tax treaties contain an article providing relief from double taxation. Efile 1040ez Many treaties contain special foreign tax credit rules for U. Efile 1040ez S. Efile 1040ez citizens who are residents of a treaty country. Efile 1040ez For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Efile 1040ez Allowances, Differentials, and Special Pay Most payments received by U. Efile 1040ez S. Efile 1040ez Government civilian employees for working abroad, including pay differentials, are taxable. Efile 1040ez However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Efile 1040ez The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Efile 1040ez Pay differentials. Efile 1040ez   Pay differentials you receive as financial incentives for employment abroad are taxable. Efile 1040ez Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Efile 1040ez   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Efile 1040ez The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Efile 1040ez Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Efile 1040ez Foreign areas allowances. Efile 1040ez   Certain foreign areas allowances are tax free. Efile 1040ez Your employer should not have included these allowances as wages on your Form W-2. Efile 1040ez   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Efile 1040ez Title I, chapter 9, of the Foreign Service Act of 1980. Efile 1040ez Section 4 of the Central Intelligence Agency Act of 1949, as amended. Efile 1040ez Title II of the Overseas Differentials and Allowances Act. Efile 1040ez Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Efile 1040ez These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Efile 1040ez Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Efile 1040ez Cost-of-living allowances. Efile 1040ez   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Efile 1040ez The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Efile 1040ez Cost-of-living allowances are not included on your Form W-2. Efile 1040ez Federal court employees. Efile 1040ez   If you are a federal court employee, the preceding paragraph also applies to you. Efile 1040ez The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Efile 1040ez American Institute in Taiwan. Efile 1040ez   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Efile 1040ez S. Efile 1040ez tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Efile 1040ez S. Efile 1040ez Government. Efile 1040ez Federal reemployment payments after serving with an international organization. Efile 1040ez   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Efile 1040ez These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Efile 1040ez Allowances or reimbursements for travel and transportation expenses. Efile 1040ez   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Efile 1040ez Lodging furnished to a principal representative of the United States. Efile 1040ez   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Efile 1040ez However, amounts paid by the U. Efile 1040ez S. Efile 1040ez government for your usual costs of operating and maintaining your household are taxable. Efile 1040ez If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Efile 1040ez Peace Corps. Efile 1040ez   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Efile 1040ez Taxable allowances. Efile 1040ez   The following allowances must be included on your Form W-2 and reported on your return as wages. Efile 1040ez If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Efile 1040ez The part of living allowances designated by the Director of the Peace Corps as basic compensation. Efile 1040ez This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Efile 1040ez Leave allowances. Efile 1040ez Readjustment allowances or “termination payments. Efile 1040ez ” Taxable allowances are considered received by you when credited to your account. Efile 1040ez Example. Efile 1040ez Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Efile 1040ez Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Efile 1040ez Nontaxable allowances. Efile 1040ez   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Efile 1040ez These allowances should not be included on your Form W-2. Efile 1040ez These allowances are tax free whether paid by the U. Efile 1040ez S. Efile 1040ez Government or the foreign country in which you are stationed. Efile 1040ez Other Income Other employment. Efile 1040ez   If, in addition to your U. Efile 1040ez S. Efile 1040ez government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Efile 1040ez In addition, if your spouse is a U. Efile 1040ez S. Efile 1040ez citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Efile 1040ez For more information, see Publication 54. Efile 1040ez The tax treaty rules relating to income from personal services generally apply to income from private employment. Efile 1040ez As discussed above, the saving clause applies to you if you are a U. Efile 1040ez S. Efile 1040ez citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Efile 1040ez Sale of personal property. Efile 1040ez   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Efile 1040ez S. Efile 1040ez dollars, the excess of the amount received in U. Efile 1040ez S. Efile 1040ez dollars over the cost or other basis of the property is a capital gain. Efile 1040ez Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Efile 1040ez However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Efile 1040ez Sale of your home. Efile 1040ez   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Efile 1040ez Losses are not deductible. Efile 1040ez   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Efile 1040ez Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Efile 1040ez   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Efile 1040ez   For detailed information on selling your home, see Publication 523. Efile 1040ez Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Efile 1040ez Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Efile 1040ez These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Efile 1040ez Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Efile 1040ez Your tax home is not limited to the Embassy, consulate, or duty station. Efile 1040ez It includes the entire city or general area in which your principal place of employment is located. Efile 1040ez Traveling away from home. Efile 1040ez   You are traveling away from home if you meet both of the following requirements. Efile 1040ez Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Efile 1040ez You need to get sleep or rest to meet the demands of your work while away from home. Efile 1040ez This requirement is not satisfied by merely napping in your car. Efile 1040ez You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Efile 1040ez Temporary assignment. Efile 1040ez   If your assignment or job away from your tax home is temporary, your tax home does not change. Efile 1040ez You are considered to be away from home for the whole period, and your travel expenses are deductible. Efile 1040ez Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Efile 1040ez   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Efile 1040ez An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Efile 1040ez   You must determine whether your assignment is temporary or indefinite when you start work. Efile 1040ez If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Efile 1040ez Employment that is initially temporary may become indefinite due to changed circumstances. Efile 1040ez A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Efile 1040ez Exception for federal crime investigations or prosecutions. Efile 1040ez   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Efile 1040ez This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Efile 1040ez Limit on meals and entertainment. Efile 1040ez   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Efile 1040ez However, the limit does not apply to expenses reimbursed under a U. Efile 1040ez S. Efile 1040ez Government expense allowance arrangement. Efile 1040ez Individuals subject to hours of service limits. Efile 1040ez   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Efile 1040ez   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Efile 1040ez Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Efile 1040ez Interstate truck operators and bus drivers who are under Department of Transportation regulations. Efile 1040ez Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Efile 1040ez Certain merchant mariners who are under Coast Guard regulations. Efile 1040ez Primary purpose of trip must be for business. Efile 1040ez   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Efile 1040ez However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Efile 1040ez   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Efile 1040ez This applies even if you engage in business activities while there. Efile 1040ez However, you can deduct any expenses while at your destination that are directly related to your business. Efile 1040ez Expenses paid for others. Efile 1040ez   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Efile 1040ez Home leave. Efile 1040ez   The Foreign Service Act requires U. Efile 1040ez S. Efile 1040ez citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Efile 1040ez This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Efile 1040ez   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Efile 1040ez You must be able to verify these amounts in order to claim them. Efile 1040ez Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Efile 1040ez More information. Efile 1040ez   See chapter 1 of Publication 463 for more information on travel expenses. Efile 1040ez Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Efile 1040ez Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Efile 1040ez They do not include expenses you have when traveling away from home overnight. Efile 1040ez Those expenses are deductible as travel expenses and are discussed earlier. Efile 1040ez Commuting. Efile 1040ez   You cannot deduct your transportation costs of going between your home and your regular business location. Efile 1040ez These costs are personal commuting expenses. Efile 1040ez   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Efile 1040ez   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Efile 1040ez More information. Efile 1040ez   For more information on transportation expenses, see chapter 4 of Publication 463. Efile 1040ez Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Efile 1040ez Membership dues. Efile 1040ez   You can deduct membership dues you pay to professional societies that relate to your business or profession. Efile 1040ez Subscriptions. Efile 1040ez   You can deduct subscriptions to professional publications that relate to your business or profession. Efile 1040ez Educational expenses. Efile 1040ez   Generally, educational expenses are considered to be personal expenses and are not deductible. Efile 1040ez However, under some circumstances, educational expenses are deductible as business expenses. Efile 1040ez   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Efile 1040ez   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Efile 1040ez These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Efile 1040ez   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Efile 1040ez    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Efile 1040ez However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Efile 1040ez These benefits are explained in Publication 970. Efile 1040ez Foreign service representation expenses. Efile 1040ez   If you are an employee of the U. Efile 1040ez S. Efile 1040ez Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Efile 1040ez If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Efile 1040ez You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Efile 1040ez The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Efile 1040ez    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Efile 1040ez These rules are explained in Publication 463. Efile 1040ez Representation expenses. Efile 1040ez   These are expenses that further the interest of the United States abroad. Efile 1040ez They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Efile 1040ez They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Efile 1040ez   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Efile 1040ez These regulations are available on the Internet at www. Efile 1040ez state. Efile 1040ez gov/m/a/als. Efile 1040ez Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Efile 1040ez ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Efile 1040ez Impairment-related work expenses. Efile 1040ez   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Efile 1040ez Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Efile 1040ez These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Efile 1040ez They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Efile 1040ez Loss on conversion of U. Efile 1040ez S. Efile 1040ez dollars into foreign currency. Efile 1040ez   The conversion of U. Efile 1040ez S. Efile 1040ez dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Efile 1040ez Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Efile 1040ez For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Efile 1040ez The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Efile 1040ez You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Efile 1040ez For each trip away from home, the dates you left and returned and the number of days spent on business. Efile 1040ez The destination or area of your travel, described by the name of the city, town, or similar designation. Efile 1040ez The business reason for your travel or the business benefit gained or expected to be gained from your travel. Efile 1040ez How to record your expenses. Efile 1040ez   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Efile 1040ez They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Efile 1040ez You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Efile 1040ez   Each expense should be recorded separately in your records. Efile 1040ez However, some items can be totaled in reasonable categories. Efile 1040ez You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Efile 1040ez You may record tips separately or with the cost of the service. Efile 1040ez    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Efile 1040ez It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Efile 1040ez Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Efile 1040ez It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Efile 1040ez    A canceled check by itself does not prove a business cost. Efile 1040ez You must have other evidence to show that the check was used for a business purpose. Efile 1040ez Your records must be timely. Efile 1040ez   Record the elements for the expense in your account book or other record at or near the time of the expense. Efile 1040ez A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Efile 1040ez Confidential information. Efile 1040ez   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Efile 1040ez However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Efile 1040ez How To Report Business Expenses As a U. Efile 1040ez S. Efile 1040ez Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Efile 1040ez If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Efile 1040ez However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Efile 1040ez If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Efile 1040ez Form 2106 or Form 2106-EZ. Efile 1040ez   You must complete Form 2106 or 2106-EZ to deduct your expenses. Efile 1040ez Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Efile 1040ez Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Efile 1040ez Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Efile 1040ez Form 2106-EZ. Efile 1040ez   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Efile 1040ez You can use Form 2106-EZ if you meet both of the following conditions. Efile 1040ez You are not reimbursed by your employer for any expenses. Efile 1040ez (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Efile 1040ez ) If you claim car expenses, you use the standard mileage rate. Efile 1040ez Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Efile 1040ez Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Efile 1040ez However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Efile 1040ez S. Efile 1040ez Government employee. Efile 1040ez To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Efile 1040ez Closely related to the start of work. Efile 1040ez   The move must be closely related, both in time and in place, to the start of work at the new location. Efile 1040ez In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Efile 1040ez   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Efile 1040ez A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Efile 1040ez Distance test. Efile 1040ez   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Efile 1040ez If you did not have an old job location, your new job location must be at least 50 miles from your former home. Efile 1040ez Time test. Efile 1040ez   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Efile 1040ez Deductible moving expenses. Efile 1040ez   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Efile 1040ez    The cost of your meals is not a deductible moving expense. Efile 1040ez   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Efile 1040ez For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Efile 1040ez Expenses must be reasonable. Efile 1040ez   You can deduct only those expenses that are reasonable for the circumstances of your move. Efile 1040ez For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Efile 1040ez Members of your household. Efile 1040ez   A member of your household includes anyone who has both your former home and new home as his or her home. Efile 1040ez It does not include a tenant or employee unless you can claim that person as a dependent. Efile 1040ez Retirees. Efile 1040ez   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Efile 1040ez You do not have to meet the time test described earlier. Efile 1040ez Survivors. Efile 1040ez   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Efile 1040ez The move must begin within 6 months after the decedent's death. Efile 1040ez It must be from the decedent's former home outside the United States, and that home must also have been your home. Efile 1040ez You do not have to meet the time test described earlier. Efile 1040ez How to report moving expenses. Efile 1040ez   Use Form 3903 to report your moving expenses and figure your allowable deduction. Efile 1040ez Claim the deduction as an adjustment to income on Form 1040. Efile 1040ez (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Efile 1040ez ) Reimbursements. Efile 1040ez   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Efile 1040ez You also must include in gross income reimbursements paid to you under a nonaccountable plan. Efile 1040ez However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Efile 1040ez Additional information. Efile 1040ez   For additional information about moving expenses, see Publication 521. Efile 1040ez Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Efile 1040ez Contributions. Efile 1040ez   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Efile 1040ez You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Efile 1040ez For more information, see Publication 526, Charitable Contributions. Efile 1040ez Real estate tax and home mortgage interest. Efile 1040ez   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Efile 1040ez You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Efile 1040ez Example. Efile 1040ez Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Efile 1040ez During the year, Adam used the allowance, with other funds, to provide a home for himself. Efile 1040ez His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Efile 1040ez Adam did not have any other expenses related to providing a home for himself. Efile 1040ez Adam must reduce his deductions for home mortgage interest and real estate taxes. Efile 1040ez He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Efile 1040ez The result is 3/4. Efile 1040ez Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Efile 1040ez He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Efile 1040ez Exception to the reduction. Efile 1040ez   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Efile 1040ez Required statement. Efile 1040ez   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Efile 1040ez The statement must contain all of the following information. Efile 1040ez The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Efile 1040ez The amount of otherwise deductible expenses attributable to each type of tax-free income. Efile 1040ez The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Efile 1040ez An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Efile 1040ez   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Efile 1040ez Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Efile 1040ez S. Efile 1040ez income tax liability or deduct them as an itemized deduction when figuring your taxable income. Efile 1040ez Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Efile 1040ez Foreign tax credit. Efile 1040ez   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Efile 1040ez If you choose to figure a credit against your U. Efile 1040ez S. Efile 1040ez tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Efile 1040ez S. Efile 1040ez income tax return. Efile 1040ez    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Efile 1040ez If all your foreign income is exempt from U. Efile 1040ez S. Efile 1040ez tax, you will not be able to claim a foreign tax credit. Efile 1040ez   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Efile 1040ez Exemption from limit. Efile 1040ez   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Efile 1040ez Your only foreign income is passive income, such as interest, dividends, and royalties. Efile 1040ez The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Efile 1040ez The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Efile 1040ez If you make the election, you can claim a foreign tax credit without filing Form 1116. Efile 1040ez However, you cannot carry back or carry over any unused foreign tax to or from this year. Efile 1040ez See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Efile 1040ez Foreign tax deduction. Efile 1040ez   If you choose to deduct all foreign income taxes on your U. Efile 1040ez S. Efile 1040ez income tax return, itemize the deduction on Schedule A (Form 1040). Efile 1040ez You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Efile 1040ez Example. Efile 1040ez Dennis and Christina are married and live and work in Country X. Efile 1040ez Dennis works for the U. Efile 1040ez S. Efile 1040ez Government and Christina is employed by a private company. Efile 1040ez They pay income tax to Country X on Christina's income only. Efile 1040ez Dennis and Christina file a joint tax return and exclude all of Christina's income. Efile 1040ez They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Efile 1040ez Deduction for other foreign taxes. Efile 1040ez   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Efile 1040ez You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Efile 1040ez   You can deduct real property taxes you pay that are imposed on you by a foreign country. Efile 1040ez You take this deduction on Schedule A (Form 1040). Efile 1040ez You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Efile 1040ez More information. Efile 1040ez   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Efile 1040ez Local (Foreign) Tax Return As a U. Efile 1040ez S. Efile 1040ez Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Efile 1040ez Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Efile 1040ez Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Efile 1040ez Review the treaty text carefully to determine whether your U. Efile 1040ez S. Efile 1040ez Government remuneration is taxable in the host country. Efile 1040ez You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Efile 1040ez If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Efile 1040ez If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Efile 1040ez Most income tax treaties contain an article providing relief from double taxation. Efile 1040ez Many treaties contain special foreign tax credit rules for U. Efile 1040ez S. Efile 1040ez citizens who are residents of a treaty country. Efile 1040ez For more information about the foreign tax credit, see Foreign Taxes, earlier. Efile 1040ez Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Efile 1040ez For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Efile 1040ez Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Efile 1040ez Check with the appropriate U. Efile 1040ez S. Efile 1040ez Embassy for more information. Efile 1040ez Double Withholding If your U. Efile 1040ez S. Efile 1040ez government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Efile 1040ez S. Efile 1040ez tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Efile 1040ez S. Efile 1040ez income tax return on this income. Efile 1040ez Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Efile 1040ez How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Efile 1040ez By selecting the method that is best for you, you will have quick and easy access to tax help. Efile 1040ez Free help with your tax return. Efile 1040ez   Free help in preparing your return is available nationwide from IRS-certified volunteers. Efile 1040ez The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Efile 1040ez The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Efile 1040ez Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Efile 1040ez Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Efile 1040ez To find the nearest VITA or TCE site, visit IRS. Efile 1040ez gov or call 1-800-906-9887 or 1-800-829-1040. Efile 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. Efile 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. Efile 1040ez aarp. Efile 1040ez org/money/taxaide or call 1-888-227-7669. Efile 1040ez   For more information on these programs, go to IRS. Efile 1040ez gov and enter “VITA” in the search box. Efile 1040ez Internet. Efile 1040ez You can access the IRS website at IRS. Efile 1040ez gov 24 hours a day, 7 days a week to: E-file your return. Efile 1040ez Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Efile 1040ez Check the status of your 2012 refund. Efile 1040ez Go to IRS. Efile 1040ez gov and click on Where’s My Refund. Efile 1040ez Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Efile 1040ez If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Efile 1040ez Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Efile 1040ez Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Efile 1040ez Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile 1040ez So in a change from previous filing seasons, you won't get an estimated refund date right away. Efile 1040ez Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Efile 1040ez You can obtain a free transcript online at IRS. Efile 1040ez gov by clicking on Order a Return or Account Transcript under “Tools. Efile 1040ez ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Efile 1040ez You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Efile 1040ez Download forms, including talking tax forms, instructions, and publications. Efile 1040ez Order IRS products. Efile 1040ez Research your tax questions. Efile 1040ez Search publications by topic or keyword. Efile 1040ez Use the Internal Revenue Code, regulations, or other official guidance. Efile 1040ez View Internal Revenue Bulletins (IRBs) published in the last few years. Efile 1040ez Figure your withholding allowances using the IRS Withholding Calculator at www. Efile 1040ez irs. Efile 1040ez gov/individuals. Efile 1040ez Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Efile 1040ez gov by typing Alternative Minimum Tax Assistant in the search box. Efile 1040ez Sign up to receive local and national tax news by email. Efile 1040ez Get information on starting and operating a small business. Efile 1040ez Phone. Efile 1040ez Many services are available by phone. Efile 1040ez   Ordering forms, instructions, and publications. Efile 1040ez Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Efile 1040ez You should receive your order within 10 days. Efile 1040ez Asking tax questions. Efile 1040ez Call the IRS with your tax questions at 1-800-829-1040. Efile 1040ez Solving problems. Efile 1040ez You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Efile 1040ez An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Efile 1040ez Call your local Taxpayer Assistance Center for an appointment. Efile 1040ez To find the number, go to www. Efile 1040ez irs. Efile 1040ez gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Efile 1040ez TTY/TDD equipment. Efile 1040ez If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Efile 1040ez The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Efile 1040ez These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Efile 1040ez gsa. Efile 1040ez gov/fedrelay. Efile 1040ez TeleTax topics. Efile 1040ez Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Efile 1040ez Checking the status of your 2012 refund. Efile 1040ez To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Efile 1040ez Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Efile 1040ez If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Efile 1040ez Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Efile 1040ez Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile 1040ez Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Efile 1040ez Outside the U. Efile 1040ez S. Efile 1040ez If you are outside the United States, taxpayer assistance is available at the following U. Efile 1040ez S Embassies or consulate. Efile 1040ez Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Efile 1040ez If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Efile 1040ez If you are in a U. Efile 1040ez S. Efile 1040ez territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Efile 1040ez S. Efile 1040ez Virgin Islands) and have a tax question, you can call 1-800-829-1040. Efile 1040ez Evaluating the quality of our telephone services. Efile 1040ez To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Efile 1040ez One method is for a second IRS representative to listen in on or record random telephone calls. Efile 1040ez Another is to ask some callers to complete a short survey at the end of the call. Efile 1040ez Walk-in. Efile 1040ez Some products and services are available on a walk-in basis. Efile 1040ez   Products. Efile 1040ez You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Efile 1040ez Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Efile 1040ez Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Efile 1040ez Services. Efile 1040ez You can walk in to your local TAC most business days for personal, face-to-face tax help. Efile 1040ez An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Efile 1040ez If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Efile 1040ez No appointment is necessary—just walk in. Efile 1040ez Before visiting, check www. Efile 1040ez irs. Efile 1040ez gov/localcontacts for hours of operation and services provided. Efile 1040ez If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Efile 1040ez You can leave a message and a representative will call you back within 2 business days. Efile 1040ez All other issues will be handled without an appointment. Efile 1040ez To call your local TAC, go to  www. Efile 1040ez irs. Efile 1040ez gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Efile 1040ez Outside the U. Efile 1040ez S. Efile 1040ez If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Efile 1040ez S. Efile 1040ez Embassies and consulates. Efile 1040ez Mail. Efile 1040ez You can send your order for forms, instructions, and publications to the address below. Efile 1040ez You should receive a response within 10 days after your request is received. Efile 1040ez  Internal Revenue Service 1201 N. Efile 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Efile 1040ez S. Efile 1040ez If you are outside the United States, you can get tax assistance by writing to the address below. Efile 1040ez  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Efile 1040ez   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Efile 1040ez Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Efile 1040ez TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Efile 1040ez Remember, the worst thing you can do is nothing at all. Efile 1040ez   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Efile 1040ez You face (or your business is facing) an immediate threat of adverse action. Efile 1040ez You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Efile 1040ez   If you qualify for help, they will do everything they can to get your problem resolved. Efile 1040ez You will be assigned to one advocate who will be with you at every turn. Efile 1040ez TAS has offices in every state, the District of Columbia, and Puerto Rico. Efile 1040ez Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Efile 1040ez And its services are always free. Efile 1040ez   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Efile 1040ez The TAS tax toolkit at www. Efile 1040ez TaxpayerAdvocate. Efile 1040ez irs. Efile 1040ez gov can help you understand these rights. Efile 1040ez   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Efile 1040ez irs. Efile 1040ez gov/advocate. Efile 1040ez You can also call the toll-free number at 1-877-777-4778. Efile 1040ez Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Efile 1040ez These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Efile 1040ez gsa. Efile 1040ez gov/fedrelay. Efile 1040ez   TAS also handles large-scale or systemic problems that affect many taxpayers. Efile 1040ez If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Efile 1040ez irs. Efile 1040ez gov/advocate. Efile 1040ez    Outside the U. Efile 1040ez S. Efile 1040ez If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Efile 1040ez You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Efile 1040ez R. Efile 1040ez 00968-8000 Low Income Taxpayer Clinics (LITCs). Efile 1040ez   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Efile 1040ez Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Efile 1040ez These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Efile 1040ez Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Efile 1040ez For more information and to find a clinic near you, see the LITC page on www. Efile 1040ez irs. Efile 1040ez gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Efile 1040ez This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Efile 1040ez Free tax services. Efile 1040ez   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Efile 1040ez Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Efile 1040ez The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Efile 1040ez The majority of the information and services listed in this publication are available to you free of charge. Efile 1040ez If there is a fee associated with a resource or service, it is listed in the publication. Efile 1040ez   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Efile 1040ez DVD for tax products. Efile 1040ez You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Efile 1040ez Prior-year forms, instructions, and publications. Efile 1040ez Tax Map: an electronic research tool and finding aid. Efile 1040ez Tax law frequently asked questions. Efile 1040ez Tax Topics from the IRS telephone response system. Efile 1040ez Internal Revenue Code—Title 26 of the U. Efile 1040ez S. Efile 1040ez Code. Efile 1040ez Links to other Internet-based tax research materials. Efile 1040ez Fill-in, print, and save features for most tax forms. Efile 1040ez Internal Revenue Bulletins. Efile 1040ez Toll-free and email technical support. Efile 1040ez Two releases during the year. Efile 1040ez  – The first release will ship the beginning of January 2013. Efile 1040ez  – The final release will ship the beginning of March 2013. Efile 1040ez Purchase the DVD from National Technical Information Service (NTIS) at www. Efile 1040ez irs. Efile 1040ez gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Efile 1040ez Prev  Up  Next   Home   More Online Publications