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Efile 1040x

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Efile 1040x

Efile 1040x 13. Efile 1040x   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Efile 1040x Free help with your tax return. Efile 1040x   You can get free help preparing your return nationwide from IRS-certified volunteers. Efile 1040x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Efile 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Efile 1040x 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 1040x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Efile 1040x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Efile 1040x gov, download the IRS2Go app, or call 1-800-906-9887. Efile 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Efile 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Efile 1040x aarp. Efile 1040x org/money/taxaide or call 1-888-227-7669. Efile 1040x For more information on these programs, go to IRS. Efile 1040x gov and enter “VITA” in the search box. Efile 1040x Internet. Efile 1040x    IRS. Efile 1040x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Efile 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Efile 1040x Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Efile 1040x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Efile 1040x gov or download the IRS2Go app and select the Refund Status option. Efile 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Efile 1040x Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Efile 1040x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Efile 1040x Use the Interactive Tax Assistant (ITA) to research your tax questions. Efile 1040x No need to wait on the phone or stand in line. Efile 1040x The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Efile 1040x When you reach the response screen, you can print the entire interview and the final response for your records. Efile 1040x New subject areas are added on a regular basis. Efile 1040x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Efile 1040x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Efile 1040x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Efile 1040x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Efile 1040x When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Efile 1040x Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Efile 1040x You can also ask the IRS to mail a return or an account transcript to you. Efile 1040x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Efile 1040x gov or by calling 1-800-908-9946. Efile 1040x Tax return and tax account transcripts are generally available for the current year and the past three years. Efile 1040x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Efile 1040x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Efile 1040x If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Efile 1040x Check the status of your amended return using Where's My Amended Return? Go to IRS. Efile 1040x gov and enter Where's My Amended Return? in the search box. Efile 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Efile 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Efile 1040x Make a payment using one of several safe and convenient electronic payment options available on IRS. Efile 1040x gov. Efile 1040x Select the Payment tab on the front page of IRS. Efile 1040x gov for more information. Efile 1040x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Efile 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Efile 1040x gov. Efile 1040x Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Efile 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Efile 1040x gov. Efile 1040x Request an Electronic Filing PIN by going to IRS. Efile 1040x gov and entering Electronic Filing PIN in the search box. Efile 1040x Download forms, instructions and publications, including accessible versions for people with disabilities. Efile 1040x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Efile 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Efile 1040x An employee can answer questions about your tax account or help you set up a payment plan. Efile 1040x Before you visit, check the Office Locator on IRS. Efile 1040x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Efile 1040x If you have a special need, such as a disability, you can request an appointment. Efile 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Efile 1040x Apply for an Employer Identification Number (EIN). Efile 1040x Go to IRS. Efile 1040x gov and enter Apply for an EIN in the search box. Efile 1040x Read the Internal Revenue Code, regulations, or other official guidance. Efile 1040x Read Internal Revenue Bulletins. Efile 1040x Sign up to receive local and national tax news and more by email. Efile 1040x Just click on “subscriptions” above the search box on IRS. Efile 1040x gov and choose from a variety of options. Efile 1040x    Phone. Efile 1040x You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Efile 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Efile 1040x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Efile 1040x gov, or download the IRS2Go app. Efile 1040x Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Efile 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Efile 1040x Most VITA and TCE sites offer free electronic filing. Efile 1040x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Efile 1040x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Efile 1040x Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Efile 1040x If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Efile 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Efile 1040x Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile 1040x Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Efile 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Efile 1040x Note, the above information is for our automated hotline. Efile 1040x Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Efile 1040x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Efile 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Efile 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Efile 1040x Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Efile 1040x You should receive your order within 10 business days. Efile 1040x Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Efile 1040x If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Efile 1040x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Efile 1040x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Efile 1040x These individuals can also contact the IRS through relay services such as the Federal Relay Service. Efile 1040x    Walk-in. Efile 1040x You can find a selection of forms, publications and services — in-person. Efile 1040x Products. Efile 1040x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Efile 1040x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Efile 1040x Services. Efile 1040x You can walk in to your local TAC for face-to-face tax help. Efile 1040x An employee can answer questions about your tax account or help you set up a payment plan. Efile 1040x Before visiting, use the Office Locator tool on IRS. Efile 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Efile 1040x    Mail. Efile 1040x You can send your order for forms, instructions, and publications to the address below. Efile 1040x You should receive a response within 10 business days after your request is received. Efile 1040x Internal Revenue Service 1201 N. Efile 1040x Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Efile 1040x The Taxpayer Advocate Service (TAS) is your voice at the IRS. Efile 1040x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Efile 1040x   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Efile 1040x We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Efile 1040x You face (or your business is facing) an immediate threat of adverse action. Efile 1040x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Efile 1040x   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Efile 1040x Here's why we can help: TAS is an independent organization within the IRS. Efile 1040x Our advocates know how to work with the IRS. Efile 1040x Our services are free and tailored to meet your needs. Efile 1040x We have offices in every state, the District of Columbia, and Puerto Rico. Efile 1040x   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Efile 1040x   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Efile 1040x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Efile 1040x Low Income Taxpayer Clinics. Efile 1040x   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Efile 1040x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Efile 1040x Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Efile 1040x Prev  Up  Next   Home   More Online Publications
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How Much Can I Deduct for Each Exemption I Claim?

There are two types of exemptions, personal exemptions and exemptions for dependents. You usually can claim exemptions for yourself, your spouse and each person you can claim as a dependent. 

Information You Will Need:

  • Marital status, relationship to the dependent and the amount of support provided
  • Basic income information such as your adjusted gross income

Estimated Completion Time: 4 minutes. However: 5 minutes of inactivity will end the interview and you will be forced to start over.

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Page Last Reviewed or Updated: 14-Feb-2014

The Efile 1040x

Efile 1040x 1. Efile 1040x   Bona Fide Residence Table of Contents Presence TestDays of Presence in the United States or Relevant Possession Significant Connection Tax HomeExceptions Closer ConnectionException for Year of Move Special Rules in the Year of a MoveYear of Moving to a Possession Year of Moving From a Possession Reporting a Change in Bona Fide ResidenceWho Must File Penalty for Not Filing Form 8898 In order to qualify for certain tax benefits (see chapter 3), you must be a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI for the entire tax year. Efile 1040x Generally, you are a bona fide resident of one of these possessions (the relevant possession) if, during the tax year, you: Meet the presence test, Do not have a tax home outside the relevant possession, and Do not have a closer connection to the United States or to a foreign country than to the relevant possession. Efile 1040x Special rule for members of the U. Efile 1040x S. Efile 1040x Armed Forces. Efile 1040x   If you are a member of the U. Efile 1040x S. Efile 1040x Armed Forces who qualified as a bona fide resident of the relevant possession in an earlier tax year, your absence from that possession during the current tax year in compliance with military orders will not affect your status as a bona fide resident. Efile 1040x Likewise, being in a possession solely in compliance with military orders will not qualify you for bona fide residency. Efile 1040x Also see the special income source rule for members of the U. Efile 1040x S. Efile 1040x Armed Forces in chapter 2, under Compensation for Labor or Personal Services . Efile 1040x Special rule for civilian spouse of active duty member of the U. Efile 1040x S. Efile 1040x Armed Forces. Efile 1040x   If you are the civilian spouse of an active duty servicemember, under Military Spouses Residency Relief Act (MSRRA) you can choose to keep your prior residence or domicile for tax purposes (tax residence) when accompanying the servicemember spouse, who is relocating under military orders, to a new military duty station in one of the 50 states, the District of Columbia, or a U. Efile 1040x S. Efile 1040x possession. Efile 1040x Before relocating, you and your spouse must have the same tax residence. Efile 1040x If you are a civilian spouse and choose to keep your prior tax residence after such relocation, the source of income for services performed (for example, wages, salaries, tips, or self-employment) by you is considered to be (the jurisdiction of) the prior tax residence. Efile 1040x As a result, the amount of income tax withholding (from Form(s) W-2, Wage and Tax Statement) that you are able to claim on your federal return, as well as the need to file a state or U. Efile 1040x S. Efile 1040x possession return, may be affected. Efile 1040x For more information, consult with state, local, or U. Efile 1040x S. Efile 1040x possession tax authorities regarding your tax obligations under MSRRA. Efile 1040x Presence Test If you are a U. Efile 1040x S. Efile 1040x citizen or resident alien, you will satisfy the presence test for the entire tax year if you meet one of the following conditions. Efile 1040x You were present in the relevant possession for at least 183 days during the tax year. Efile 1040x You were present in the relevant possession for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. Efile 1040x During each year of the 3-year period, you must be present in the relevant possession for at least 60 days. Efile 1040x You were present in the United States for no more than 90 days during the tax year. Efile 1040x You had earned income in the United States of no more than a total of $3,000 and were present for more days in the relevant possession than in the United States during the tax year. Efile 1040x Earned income is pay for personal services performed, such as wages, salaries, or professional fees. Efile 1040x You had no significant connection to the United States during the tax year. Efile 1040x Special rule for nonresident aliens. Efile 1040x   Conditions (1) through (5) above do not apply to nonresident aliens of the United States. Efile 1040x Instead, nonresident aliens must meet the substantial presence test discussed in chapter 1 of Publication 519. Efile 1040x In that discussion, substitute the name of the possession for “United States” and “U. Efile 1040x S. Efile 1040x ” wherever they appear. Efile 1040x Disregard the discussion in that chapter about a Closer Connection to a Foreign Country. Efile 1040x Days of Presence in the United States or Relevant Possession Generally, you are treated as being present in the United States or in the relevant possession on any day that you are physically present in that location at any time during the day. Efile 1040x Days of presence in a possession. Efile 1040x   You are considered to be present in the relevant possession on any of the following days. Efile 1040x Any day you are physically present in that possession at any time during the day. Efile 1040x Any day you are outside of the relevant possession in order to receive, or to accompany any of the following family members to receive, qualifying medical treatment (see Qualifying Medical Treatment , later). Efile 1040x Your parent. Efile 1040x Your spouse. Efile 1040x Your child, who is your son, daughter, stepson, or stepdaughter. Efile 1040x This includes an adopted child or child lawfully placed with you for legal adoption. Efile 1040x This also includes a foster child who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Efile 1040x Any day you are outside the relevant possession because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Efile 1040x   If, during a single day, you are physically present: In the United States and in the relevant possession, that day is considered a day of presence in the relevant possession; or In two possessions, that day is considered a day of presence in the possession where your tax home is located (see Tax Home , later). Efile 1040x Days of presence in the United States. Efile 1040x   You are considered to be present in the United States on any day that you are physically present in the United States at any time during the day. Efile 1040x However, do not count the following days as days of presence in the United States. Efile 1040x Any day you are temporarily present in the United States in order to receive, or to accompany a parent, spouse, or child who is receiving, qualifying medical treatment. Efile 1040x “Child” is defined under item 2c earlier. Efile 1040x “Qualifying medical treatment” is defined later. Efile 1040x Any day you are temporarily present in the United States because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Efile 1040x Any day you are in the United States for less than 24 hours when you are traveling between two places outside the United States. Efile 1040x Any day you are temporarily present in the United States as a professional athlete to compete in a charitable sports event (defined later). Efile 1040x Any day you are temporarily in the United States as a student (defined later). Efile 1040x Any day you are in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Efile 1040x Qualifying Medical Treatment Such treatment is generally provided by (or under the supervision of) a physician for an illness, injury, impairment, or physical or mental condition. Efile 1040x The treatment generally involves: Any period of inpatient care that requires an overnight stay in a hospital or hospice, and any period immediately before or after that inpatient care to the extent it is medically necessary, or Any temporary period of inpatient care in a residential medical care facility for medically necessary rehabilitation services. Efile 1040x With respect to each qualifying medical treatment, you must prepare (or obtain) and maintain documentation supporting your claim that such treatment meets the criteria to be considered days of presence in the relevant possession. Efile 1040x You must be able to produce this documentation within 30 days if requested by the IRS or tax administrator for the relevant possession. Efile 1040x You must keep the following documentation. Efile 1040x Records that provide: The patient's name and relationship to you (if the medical treatment is provided to a person you accompany); The name and address of the hospital, hospice, or residential medical care facility where the medical treatment was provided; The name, address, and telephone number of the physician who provided the medical treatment; The date(s) on which the medical treatment was provided; and Receipt(s) of payment for the medical treatment. Efile 1040x Signed certification by the providing or supervising physician that the medical treatment met the requirements for being qualified medical treatment, and setting forth: The patient's name, A reasonably detailed description of the medical treatment provided by (or under the supervision of) the physician, The dates on which the medical treatment was provided, and The medical facts that support the physician's certification and determination that the treatment was medically necessary. Efile 1040x Charitable Sports Event A charitable sports event is one that meets all of the following conditions. Efile 1040x The main purpose is to benefit a qualified charitable organization. Efile 1040x The entire net proceeds go to charity. Efile 1040x Volunteers perform substantially all the work. Efile 1040x In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in the charitable sports event. Efile 1040x You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. Efile 1040x Student To qualify as a student, you must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by a school described in (1) above or by a state, county, or local government agency. Efile 1040x The 5 calendar months do not have to be consecutive. Efile 1040x Full-time student. Efile 1040x   A full-time student is a person who is enrolled for the number of hours or courses the school considers to be full-time attendance. Efile 1040x However, school attendance exclusively at night is not considered full-time attendance. Efile 1040x School. Efile 1040x   The term “school” includes elementary schools, middle schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical schools. Efile 1040x It does not include on-the-job training courses, correspondence schools, and schools offering courses only through the Internet. Efile 1040x Significant Connection One way in which you can meet the presence test is to have no significant connection to the United States during the tax year. Efile 1040x This section looks at the factors that determine if a significant connection exists. Efile 1040x You are treated as having a significant connection to the United States if you: Have a permanent home in the United States, Are currently registered to vote in any political subdivision of the United States, or Have a spouse or child (see item 2c under Days of presence in a possession , earlier) who is under age 18 whose main home is in the United States, other than: A child who is in the United States because he or she is the child of divorced or legally separated parents and is living with a custodial parent under a custodial decree or multiple support agreement, or A child who is in the United States as a student. Efile 1040x For the purpose of determining if you have a significant connection to the United States, the term “spouse” does not include a spouse from whom you are legally separated under a decree of divorce or separate maintenance. Efile 1040x Permanent home. Efile 1040x   A permanent home generally includes an accommodation such as a house, an apartment, or a furnished room that is either owned or rented by you or your spouse. Efile 1040x The dwelling unit must be available at all times, continuously, not only for short stays. Efile 1040x Exception for rental property. Efile 1040x   If you or your spouse own the dwelling unit and at any time during the tax year it is rented to someone else at fair rental value, it will be considered your permanent home only if you or your spouse use that property for personal purposes for more than the greater of: 14 days, or 10% of the number of days during that tax year that the property is rented to others at a fair rental value. Efile 1040x   You are treated as using rental property for personal purposes on any day the property is not being rented to someone else at fair rental value for the entire day. Efile 1040x   A day of personal use of a dwelling unit is also any day that the unit is used by any of the following persons. Efile 1040x You or any other person who has an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement. Efile 1040x A member of your family or a member of the family of any other person who has an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Efile 1040x Family includes only brothers and sisters, half-brothers and half-sisters, spouses, ancestors (parents, grandparents, etc. Efile 1040x ), and lineal descendants (children, grandchildren, etc. Efile 1040x ). Efile 1040x Anyone under an arrangement that lets you use some other dwelling unit. Efile 1040x Anyone at less than a fair rental price. Efile 1040x   However, any day you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Efile 1040x Whether your property is used mainly for this purpose is determined in light of all the facts and circumstances, such as: The amount of time you devote to repair and maintenance work, How often during the tax year you perform repair and maintenance work on this property, and The presence and activities of companions. Efile 1040x   See Publication 527, Residential Rental Property, for more information about personal use of a dwelling unit. Efile 1040x Example—significant connection. Efile 1040x Ann Green, a U. Efile 1040x S. Efile 1040x citizen, is a sales representative for a company based in Guam. Efile 1040x Ann lives with her spouse and young children in their house in Guam, where she is also registered to vote. Efile 1040x Her business travel requires her to spend 120 days in the United States and another 120 days in foreign countries. Efile 1040x When traveling on business, Ann generally stays at hotels but sometimes stays with her brother, who lives in the United States. Efile 1040x Ann's stays are always of short duration and she asks her brother's permission to stay with him. Efile 1040x Her brother's house is not her permanent home, nor does she have any other accommodations in the United States that would be considered her permanent home. Efile 1040x Ann satisfies the presence test because she has no significant connection to the United States. Efile 1040x Example—presence test. Efile 1040x Eric and Wanda Brown live for part of the year in a condominium, which they own, in the CNMI. Efile 1040x They also own a house in Maine where they live for 120 days every year to be near their grown children and grandchildren. Efile 1040x The Browns are retired and their only income is from pension payments, dividends, interest, and social security benefits. Efile 1040x In 2013, they spent only 175 days in the CNMI because of a 70-day vacation to Europe and Asia. Efile 1040x Thus, in 2013, the Browns were not present in the CNMI for at least 183 days, were present in the United States for more than 90 days, and had a significant connection to the United States because of their permanent home. Efile 1040x However, the Browns still satisfied the presence test with respect to the CNMI because they had no earned income in the United States and were physically present for more days in the CNMI than in the United States. Efile 1040x Tax Home You will have met the tax home test if you did not have a tax home outside the relevant possession during any part of the tax year. Efile 1040x Your tax home is your regular or main place of business, employment, or post of duty regardless of where you maintain your family home. Efile 1040x If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. Efile 1040x If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Efile 1040x Exceptions There are some special rules regarding tax home that provide exceptions to the general rule stated above. Efile 1040x Students and Government Officials Disregard the following days when determining whether you have a tax home outside the relevant possession. Efile 1040x Days you were temporarily in the United States as a student (see Student under Days of Presence in the United States or Relevant Possession, earlier). Efile 1040x Days you were in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Efile 1040x Seafarers You will not be considered to have a tax home outside the relevant possession solely because you are employed on a ship or other seafaring vessel that is predominantly used in local and international waters. Efile 1040x For this purpose, a vessel is considered to be predominantly used in local and international waters if, during the tax year, the total amount of time it is used in international waters and in the waters within 3 miles of the relevant possession exceeds the total amount of time it is used in the territorial waters of the United States, another possession, or any foreign country. Efile 1040x Example. Efile 1040x In 2013, Sean Silverman, a U. Efile 1040x S. Efile 1040x citizen, was employed by a fishery and spent 250 days at sea on a fishing vessel. Efile 1040x When not at sea, Sean lived with his spouse at a house they own in American Samoa. Efile 1040x The fishing vessel on which Sean works departs and arrives at various ports in American Samoa, other possessions, and foreign countries, but was in international or American Samoa's local waters for 225 days. Efile 1040x For purposes of determining bona fide residency of American Samoa, Sean will not be considered to have a tax home outside that possession solely because of his employment on board the fishing vessel. Efile 1040x Year of Move If you are moving to or from a possession during the year, you may still be able to meet the tax home test for that year. Efile 1040x See Special Rules in the Year of a Move , later in this chapter. Efile 1040x Closer Connection You will have met the closer connection test if, during any part of the tax year, you do not have a closer connection to the United States or a foreign country than to the relevant U. Efile 1040x S. Efile 1040x possession. Efile 1040x You will be considered to have a closer connection to a possession than to the United States or to a foreign country if you have maintained more significant contacts with the possession(s) than with the United States or foreign country. Efile 1040x In determining if you have maintained more significant contacts with the relevant possession, the facts and circumstances to be considered include, but are not limited to, the following. Efile 1040x The location of your permanent home. Efile 1040x The location of your family. Efile 1040x The location of personal belongings, such as automobiles, furniture, clothing, and jewelry owned by you and your family. Efile 1040x The location of social, political, cultural, professional, or religious organizations with which you have a current relationship. Efile 1040x The location where you conduct your routine personal banking activities. Efile 1040x The location where you conduct business activities (other than those that go into determining your tax home). Efile 1040x The location of the jurisdiction in which you hold a driver's license. Efile 1040x The location of the jurisdiction in which you vote. Efile 1040x The location of charitable organizations to which you contribute. Efile 1040x The country of residence you designate on forms and documents. Efile 1040x The types of official forms and documents you file, such as Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-9, Request for Taxpayer Identification Number and Certification. Efile 1040x Your connections to the relevant possession will be compared to the total of your connections with the United States and foreign countries. Efile 1040x Your answers to the questions on Form 8898, Part III, will help establish the jurisdiction to which you have a closer connection. Efile 1040x Example—closer connection to the United States. Efile 1040x Marcos Reyes, a U. Efile 1040x S. Efile 1040x citizen, moved to Puerto Rico in 2013 to start an investment consulting and venture capital business. Efile 1040x His spouse and two teenage children remained in California to allow the children to complete high school. Efile 1040x He traveled back to the United States regularly to see his spouse and children, to engage in business activities, and to take vacations. Efile 1040x Marcos had an apartment available for his full-time use in Puerto Rico, but remained a joint owner of the residence in California where his spouse and children lived. Efile 1040x Marcos and his family had automobiles and personal belongings such as furniture, clothing, and jewelry located at both residences. Efile 1040x Although Marcos was a member of the Puerto Rico Chamber of Commerce, he also belonged to and had current relationships with social, political, cultural, and religious organizations in California. Efile 1040x Marcos received mail in California, including bank and brokerage statements and credit card bills. Efile 1040x He conducted his personal banking activities in California. Efile 1040x He held a California driver's license and was also registered to vote there. Efile 1040x Based on all of the particular facts and circumstances pertaining to Marcos, he was not a bona fide resident of Puerto Rico in 2013 because he had a closer connection to the United States than to Puerto Rico. Efile 1040x Closer connection to another possession. Efile 1040x   Generally, possessions are not treated as foreign countries. Efile 1040x Therefore, a closer connection to a possession other than the relevant possession will not be treated as a closer connection to a foreign country. Efile 1040x Example—tax home and closer connection to possession. Efile 1040x Pearl Blackmon, a U. Efile 1040x S. Efile 1040x citizen, is a permanent employee of a hotel in Guam, but works only during the tourist season. Efile 1040x For the remainder of each year, Pearl lives with her spouse and children in the CNMI, where she has no outside employment. Efile 1040x Most of Pearl's personal belongings, including her automobile, are located in the CNMI. Efile 1040x She is registered to vote in, and has a driver's license issued by, the CNMI. Efile 1040x She does her personal banking in the CNMI and routinely lists her CNMI address as her permanent address on forms and documents. Efile 1040x Pearl satisfies the presence test with respect to both Guam and the CNMI. Efile 1040x She satisfies the tax home test with respect to Guam, because her regular place of business is in Guam. Efile 1040x Pearl satisfies the closer connection test with respect to both Guam and the CNMI, because she does not have a closer connection to the United States or to any foreign country. Efile 1040x Pearl is considered a bona fide resident of Guam, the location of her tax home. Efile 1040x Exception for Year of Move If you are moving to or from a possession during the year, you may still be able to meet the closer connection test for that year. Efile 1040x See Special Rules in the Year of a Move , next. Efile 1040x Special Rules in the Year of a Move If you are moving to or from a possession during the year, you may still be able to meet the tax home and closer connection tests for that year. Efile 1040x Year of Moving to a Possession You will satisfy the tax home and closer connection tests in the tax year of changing your residence to the relevant possession if you meet all of the following. Efile 1040x You have not been a bona fide resident of the relevant possession in any of the 3 tax years immediately preceding your move. Efile 1040x In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the last 183 days of the tax year. Efile 1040x You are a bona fide resident of the relevant possession for each of the 3 tax years immediately following your move. Efile 1040x Example. Efile 1040x Dwight Wood, a U. Efile 1040x S. Efile 1040x citizen, files returns on a calendar year basis. Efile 1040x He lived in the United States from January 2007 through May 2013. Efile 1040x In June 2013 he moved to the USVI, purchased a house, and accepted a permanent job with a local employer. Efile 1040x From July 1 through December 31, 2013 (more than 183 days), Dwight's principal place of business was in the USVI and, during that time, he did not have a closer connection to the United States or a foreign country than to the USVI. Efile 1040x If he is a bona fide resident of the USVI during all of 2014 through 2016, he will satisfy the tax home and closer connection tests for 2013. Efile 1040x If Dwight also satisfies the presence test in 2013, he will be considered a bona fide resident of the USVI for the entire 2013 tax year. Efile 1040x Year of Moving From a Possession In the year you cease to be a bona fide resident of American Samoa, the CNMI, Guam, or the USVI, you will satisfy the tax home and closer connection tests with respect to the relevant possession if you meet all of the following. Efile 1040x You have been a bona fide resident of the relevant possession for each of the 3 tax years immediately preceding your change of residence. Efile 1040x In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the first 183 days of the tax year. Efile 1040x You are not a bona fide resident of the relevant possession for any of the 3 tax years immediately following your move. Efile 1040x Example. Efile 1040x Jean Aspen, a U. Efile 1040x S. Efile 1040x citizen, files returns on a calendar year basis. Efile 1040x From January 2010 through December 2012, Jean was a bona fide resident of American Samoa. Efile 1040x Jean continued to live there until September 6, 2013, when she accepted new employment and moved to Hawaii. Efile 1040x Jean's principal place of business from January 1 through September 5, 2013 (more than 183 days), was in American Samoa, and during that period Jean did not have a closer connection to the United States or a foreign country than to American Samoa. Efile 1040x If Jean continues to live and work in Hawaii for the rest of 2013 and throughout years 2014 through 2016, she will satisfy the tax home and closer connection tests for 2013 with respect to American Samoa. Efile 1040x If Jean also satisfies the presence test in 2013, she will be considered a bona fide resident for the entire 2013 tax year. Efile 1040x Puerto Rico You will be considered a bona fide resident of Puerto Rico for the part of the tax year preceding the date on which you move if you: Are a U. Efile 1040x S. Efile 1040x citizen, Are a bona fide resident of Puerto Rico for at least 2 tax years immediately preceding the tax year of the move, Cease to be a bona fide resident of Puerto Rico during the tax year, Cease to have a tax home in Puerto Rico during the tax year, and Have a closer connection to Puerto Rico than to the United States or a foreign country throughout the part of the tax year preceding the date on which you cease to have a tax home in Puerto Rico. Efile 1040x Example. Efile 1040x Randy White, a U. Efile 1040x S. Efile 1040x citizen, files returns on a calendar year basis. Efile 1040x For all of 2011 and 2012, Randy was a bona fide resident of Puerto Rico. Efile 1040x From January through April 2013, Randy continued to reside and maintain his principal place of business in and closer connection to Puerto Rico. Efile 1040x On May 5, 2013, Randy moved and changed his tax home to Nevada. Efile 1040x Later that year he established a closer connection to the United States than to Puerto Rico. Efile 1040x Randy did not satisfy the presence test for 2013 with respect to Puerto Rico, nor the tax home or closer connection tests. Efile 1040x However, because Randy was a bona fide resident of Puerto Rico for at least 2 tax years before he moved to Nevada in 2013, he was a bona fide resident of Puerto Rico from January 1 through May 4, 2013. Efile 1040x Reporting a Change in Bona Fide Residence If you became or ceased to be a bona fide resident of a U. Efile 1040x S. Efile 1040x possession, you may need to file Form 8898. Efile 1040x This applies to the U. Efile 1040x S. Efile 1040x possessions of American Samoa, the CNMI, Guam, Puerto Rico, and the USVI. Efile 1040x Who Must File You must file Form 8898 for the tax year in which you meet both of the following conditions. Efile 1040x Your worldwide gross income (defined below) in that tax year is more than $75,000. Efile 1040x You meet one of the following. Efile 1040x You take a position for U. Efile 1040x S. Efile 1040x tax purposes that you became a bona fide resident of a U. Efile 1040x S. Efile 1040x possession after a tax year for which you filed a U. Efile 1040x S. Efile 1040x income tax return as a citizen or resident alien of the United States but not as a bona fide resident of the possession. Efile 1040x You are a citizen or resident alien of the United States who takes the position for U. Efile 1040x S. Efile 1040x tax purposes that you ceased to be a bona fide resident of a U. Efile 1040x S. Efile 1040x possession after a tax year for which you filed an income tax return (with the IRS, the possession tax authority, or both) as a bona fide resident of the possession. Efile 1040x You take the position for U. Efile 1040x S. Efile 1040x tax purposes that you became a bona fide resident of Puerto Rico or American Samoa after a tax year for which you were required to file an income tax return as a bona fide resident of the CNMI, Guam, or the USVI. Efile 1040x Worldwide gross income. Efile 1040x   Worldwide gross income means all income you received in the form of money, goods, property, and services, including any income from sources outside the United States (even if you can exclude part or all of it) and before any deductions, credits, or rebates. Efile 1040x Example. Efile 1040x You are a U. Efile 1040x S. Efile 1040x citizen who moved to the CNMI in December 2012, but did not become a bona fide resident of that possession until the 2013 tax year. Efile 1040x You must file Form 8898 for the 2013 tax year if your worldwide gross income for that year was more than $75,000. Efile 1040x Penalty for Not Filing Form 8898 If you are required to file Form 8898 for any tax year and you fail to file it, you may owe a penalty of $1,000. Efile 1040x You may also owe this penalty if you do not include all the information required by the form or the form includes incorrect information. Efile 1040x In either case, you will not owe this penalty if you can show that such failure is due to reasonable cause and not willful neglect. Efile 1040x This is in addition to any criminal penalty that may be imposed. Efile 1040x Prev  Up  Next   Home   More Online Publications