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Fillable 1040x Form

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Fillable 1040x Form

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

This page provides a listing of current and recent IRS sponsored customer satisfaction surveys.

The IRS, as for all federal executive departments and agencies and their public websites, must comply with the Paperwork Reduction Act (44 U.S.C. Chapter 35) to ensure that information collected from the public, minimizes burden and maximizes public utility.

One of the principal requirements of the PRA is that organizations must have Office of Management and Budget approval before collecting information from the public (such as forms, general questionnaires, surveys, instructions and other types of information collections), and they must display the current OMB control number on the collection format.

IRS surveys conducted by mail, telephone and online provide the name of an IRS contact person and/or a helpline contact phone number. If you question the authenticity of the survey in any collection format, please review this page.

Summary information

IRS office

Activity surveyed

Expiration date

Delivery method

Area
surveyed

Frequency

Administered by
Appeals Appeals contacts, cases closed during fiscal year survey period 9/30/2013 Web: Those not responding are contacted via telephone (Call-out) National, area Quarterly ICF Macro, Inc.
Communication and Liaison Nationwide Tax Forums 11/30/2014 Web and in person paper surveys National Annual PCG Enterprises, Inc.
Large Business and International Industry and Coordinated Industry Examinations 3/31/2014 Phone
(Call-out)
National and five industries Annually PCG Enterprises, Inc.
LB&I Compliance Assurance Process 3/31/2014 Web National Annually PCG Enterprises, Inc.
LB&I Foreign Resident Compliance Examinations 3/31/2014 Mailed - paper survey National Semi-annually PCG Enterprises, Inc.
Small Business/Self-Employed Automated Collection System 9/30/2014 Phone (Call-in) National - Campus Annual PCG Enterprises, Inc.
SB/SE Automated Under Reporter 9/30/2014 Mailed - paper survey National - Campus Annual ICF Macro, Inc.
SB/SE Automated Under Reporter Toll-free 9/30/2014

Interactive Voice Response:

Phone
National - Campus Annual ICF Macro, Inc.
SB/SE Compliance Center Exam 9/30/2014 Mailed - paper survey National - Campus Annual ICF Macro, Inc.
SB/SE Compliance Center Exam Toll-free 9/30/2014 IVR Phone National - Campus Annual ICF Macro, Inc.
SB/SE Compliance Services Collection Operation 9/30/2014 Mailed - paper survey National - Campus Annual PCG Enterprises, Inc
SB/SE Collection 9/30/2014 Mailed - paper survey National, area Annual Fors Marsh Group
SB/SE Field Examination 9/30/2014 Mailed - paper survey National, area Annual Fors Marsh Group
SB/SE Employment Tax Examination 9/30/2014 Mailed - paper survey National territories Annual Fors Marsh Group
SB/SE Excise Tax Examination 9/30/2014 Mailed - paper survey National territories Annual Fors Marsh Group
SB/SE Estate and Gift Tax Examination 9/30/2014 Mailed - paper survey National territories Annual Fors Marsh Group
SB/SE American Customer Satisfaction Index 10/31/2013 Phone
(Call-out)
National Annual CFI Group
Tax Exempt/Government Entities Exempt Organizations Determinations 3/31/2014 Mailed paper survey National Semi-annually ICF Macro, Inc.
TE/GE Exempt Organizations Examinations 3/31/2014 Mailed paper survey National, area Semi-annually ICF Macro, Inc.
TE/GE Employee Plans Determinations 3/31/2014 Mailed paper survey National Semi-annually ICF Macro, Inc.
TE/GE Employee Plans Examinations 3/31/2014 Mailed paper survey National, area Semi-annually ICF Macro, Inc.
TE/GE Federal, State & Local Governments Examination 3/31/2014 Mailed paper survey National Annually ICF Macro, Inc.
TE/GE Toll-free 3/31/2014 Phone (Call-in) National Annually ICF Macro, Inc.
Taxpayer Advocate
Service
TAS closed cases 6/30/2014 Web: Those not responding are contacted via telephone (Call-out) National, area and office Quarterly PCG Enterprises, Inc.
Wage and Investment, Customer Assistance, Relationships and Education: Field Assistance Field Assistance 3/31/2014 Comment card - Paper National, areas Quarterly, annually PCG Enterprises, Inc.
W&I:CARE: Media & Publications Individual taxpayer 9/30/2013 Mail / Online National Annually Fors Marsh Group
W&I:CARE:M&P Business Taxpayers 9/30/2013 Mail / Online National Annually Fors Marsh Group
W&I:CARE:M&P Tax preparers 9/30/2013 Mail / Online National Annually Fors Marsh Group
W&I:CARE:M&P Forms & Publications 9/30/2013 Online National Annually Fors Marsh Group
W&I:CARE:Stakeholder Partnerships, Education and Communication SPEC Partner 9/30/2013 Online National Annually Fors Marsh Group, LLC
W&I:Customer Account Services Adjustments 3/31/2014 Mailed - paper survey National Quarterly, annually Fors Marsh Group, LLC
W&I:CAS E-Help 6/8/2013 IVR Phone National Quarterly, annually PCG Enterprises, Inc.
W&I:CAS Injured Spouse 3/31/2013 Mailed - paper survey National Quarterly, Semi-annual Fors Marsh Group, LLC
W&I:CAS Practitioner Priority Service 3/31/2014 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:CAS Toll-Free 3/31/2014 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:CAS TE/GE Toll-Free 3/31/2014 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Automated Collection System 9/30/2013 IVR Phone National Quarterly, annually PCG Enterprises,
Inc.
W&I:Compliance ACS Support 9/30/2013 Live phone National Quarterly, annually PCG Enterprises,
Inc.
W&I:Compliance American Customer Satisfaction Index 3/31/2013 Mailed - paper survey National One-time National Business Center, Inc., FCG, and CFI Group
W&I:Compliance Automated Under Reporter 9/30/2013 Mailed - paper survey National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Compliance Center Examination 9/30/2013 Mailed - paper survey National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Compliance Center Examination Toll-Free 9/30/2013 IVR Phone National Quarterly ICF Macro, Inc.
W&I:Compliance Compliance Services Collection Operation 9/30/2013 Live phone (Call-in) National Quarterly, annually PCG Enterprises, Inc.
W&I:Compliance Innocent Spouse 9/15/2013 Mailed - paper survey National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Innocent Spouse 9/15/2013 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:R&A Taxpayer experience survey (formerly market segment survey) 10/31/2013 Mailed Survey
Customer Relations Survey
National One-time Fors Marsh Group, LLC
W&I:R&A Identity Protection Personal Identification Number 10/31/2013 Mail Survey
Customer Relations Survey
National One-time Fors Marsh Group, LLC
W&I:R&A Taxpayer experience survey (formerly market segment survey) 5/31/2014 Web National/Spanish Annual PCG Enterprises, Inc.

 

Page Last Reviewed or Updated: 13-Mar-2014

The Fillable 1040x Form

Fillable 1040x form 8. Fillable 1040x form   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. Fillable 1040x form Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. Fillable 1040x form Introduction This chapter discusses how to pay your U. Fillable 1040x form S. Fillable 1040x form income tax as you earn or receive income during the year. Fillable 1040x form In general, the federal income tax is a pay as you go tax. Fillable 1040x form There are two ways to pay as you go. Fillable 1040x form Withholding. Fillable 1040x form If you are an employee, your employer probably withholds income tax from your pay. Fillable 1040x form Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. Fillable 1040x form In each case, the amount withheld is paid to the U. Fillable 1040x form S. Fillable 1040x form Treasury in your name. Fillable 1040x form Estimated tax. Fillable 1040x form If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Fillable 1040x form People who are in business for themselves generally will have to pay their tax this way. Fillable 1040x form You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. Fillable 1040x form Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Fillable 1040x form Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. Fillable 1040x form Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. Fillable 1040x form S. Fillable 1040x form Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. Fillable 1040x form S. Fillable 1040x form Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. Fillable 1040x form S. Fillable 1040x form Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. Fillable 1040x form Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. Fillable 1040x form If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. Fillable 1040x form If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. Fillable 1040x form If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. Fillable 1040x form However, if the income is effectively connected with a U. Fillable 1040x form S. Fillable 1040x form trade or business, file Form W-8ECI instead. Fillable 1040x form Withholding From Compensation The following discussion generally applies only to nonresident aliens. Fillable 1040x form Tax is withheld from resident aliens in the same manner as U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. Fillable 1040x form Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. Fillable 1040x form Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). Fillable 1040x form These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). Fillable 1040x form Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. Fillable 1040x form This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. Fillable 1040x form Enter your social security number (SSN) on line 2. Fillable 1040x form Do not enter an individual taxpayer identification number (ITIN). Fillable 1040x form Check only “Single” marital status on line 3 (regardless of your actual marital status). Fillable 1040x form Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. Fillable 1040x form S. Fillable 1040x form national. Fillable 1040x form Write “Nonresident Alien” or “NRA” on the dotted line on line 6. Fillable 1040x form You can request additional withholding on line 6 at your option. Fillable 1040x form Do not claim “Exempt” withholding status on line 7. Fillable 1040x form A U. Fillable 1040x form S. Fillable 1040x form national is an individual who, although not a U. Fillable 1040x form S. Fillable 1040x form citizen, owes his or her allegiance to the United States. Fillable 1040x form U. Fillable 1040x form S. Fillable 1040x form nationals include American Samoans, and Northern Mariana Islanders who chose to become U. Fillable 1040x form S. Fillable 1040x form nationals instead of U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. Fillable 1040x form S. Fillable 1040x form source scholarship or fellowship grant that is not a payment for services. Fillable 1040x form Students and business apprentices from India. Fillable 1040x form   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. Fillable 1040x form You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. Fillable 1040x form S. Fillable 1040x form taxpayer's 2013 return. Fillable 1040x form You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form Household employees. Fillable 1040x form   If you work as a household employee, your employer does not have to withhold income tax. Fillable 1040x form However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. Fillable 1040x form The agreement goes into effect when your employer accepts the agreement by beginning the withholding. Fillable 1040x form You or your employer may end the agreement by letting the other know in writing. Fillable 1040x form Agricultural workers. Fillable 1040x form   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. Fillable 1040x form However, your employer will withhold income tax only if you and your employer agree to withhold. Fillable 1040x form In that case, you must provide your employer with a properly completed Form W-4. Fillable 1040x form You can find more information about not having tax withheld at www. Fillable 1040x form irs. Fillable 1040x form gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Fillable 1040x form Wages Exempt From Withholding Wages that are exempt from U. Fillable 1040x form S. Fillable 1040x form income tax under an income tax treaty are generally exempt from withholding. Fillable 1040x form For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. Fillable 1040x form Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands may be exempt from withholding. Fillable 1040x form The following paragraphs explain these exemptions. Fillable 1040x form Residents of Canada or Mexico engaged in transportation-related employment. Fillable 1040x form   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. Fillable 1040x form These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. Fillable 1040x form    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. Fillable 1040x form   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. Fillable 1040x form S. Fillable 1040x form citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. Fillable 1040x form   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. Fillable 1040x form Residents of American Samoa and Puerto Rico. Fillable 1040x form   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. Fillable 1040x form Residents of the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands. Fillable 1040x form   Nonresident aliens who are bona fide residents of the U. Fillable 1040x form S Virgin Islands are not subject to withholding of U. Fillable 1040x form S. Fillable 1040x form tax on income earned while temporarily employed in the United States. Fillable 1040x form This is because those persons pay their income tax to the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands. Fillable 1040x form To avoid having tax withheld on income earned in the United States, bona fide residents of the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands and expect to pay tax on all income to the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands. Fillable 1040x form Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. Fillable 1040x form You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. Fillable 1040x form You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. Fillable 1040x form Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. Fillable 1040x form S. Fillable 1040x form income tax. Fillable 1040x form Include them in taxable income. Fillable 1040x form In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. Fillable 1040x form Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. Fillable 1040x form However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. Fillable 1040x form An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. Fillable 1040x form You must agree to timely file an income tax return for the current tax year. Fillable 1040x form Central withholding agreements. Fillable 1040x form   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. Fillable 1040x form Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. Fillable 1040x form   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. Fillable 1040x form Either you or your authorized representative can file the form. Fillable 1040x form It should be sent to the IRS at least 45 days before the tour begins or the event occurs. Fillable 1040x form Exceptions will be considered on a case by case basis. Fillable 1040x form   For more information on the CWA program, go to www. Fillable 1040x form irs. Fillable 1040x form gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. Fillable 1040x form Final payment exemption. Fillable 1040x form   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. Fillable 1040x form This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. Fillable 1040x form To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. Fillable 1040x form A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. Fillable 1040x form Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Fillable 1040x form A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. Fillable 1040x form This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Fillable 1040x form A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. Fillable 1040x form The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. Fillable 1040x form The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. Fillable 1040x form Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. Fillable 1040x form A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. Fillable 1040x form   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. Fillable 1040x form Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. Fillable 1040x form   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. Fillable 1040x form You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. Fillable 1040x form Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). Fillable 1040x form To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. Fillable 1040x form S. Fillable 1040x form national and are not a resident of Canada, Mexico, or South Korea. Fillable 1040x form For purposes of 30% withholding, the exemption is prorated at $10. Fillable 1040x form 82 a day in 2014 for the period that labor or personal services are performed in the United States. Fillable 1040x form To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. Fillable 1040x form Example. Fillable 1040x form Eric Johannsen, who is a resident of Country X worked under a contract with a U. Fillable 1040x form S. Fillable 1040x form firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. Fillable 1040x form He earned $6,000 for the services performed (not considered wages) in the United States. Fillable 1040x form Eric is married and has three dependent children. Fillable 1040x form His wife is not employed and has no income subject to U. Fillable 1040x form S. Fillable 1040x form tax. Fillable 1040x form The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. Fillable 1040x form 82), and withholding at 30% is applied against the balance. Fillable 1040x form Thus, $1,475. Fillable 1040x form 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). Fillable 1040x form U. Fillable 1040x form S. Fillable 1040x form nationals or residents of Canada, Mexico, or South Korea. Fillable 1040x form   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. Fillable 1040x form However, if you are a U. Fillable 1040x form S. Fillable 1040x form national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form For the 30% (or lower treaty) rate withholding, you can take $10. Fillable 1040x form 82 per day for each allowable exemption in 2014. Fillable 1040x form If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. Fillable 1040x form However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . Fillable 1040x form Students and business apprentices from India. Fillable 1040x form   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Fillable 1040x form S. Fillable 1040x form taxpayer's 2014 return. Fillable 1040x form You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. Fillable 1040x form 82 per day for each allowable exemption in 2014. Fillable 1040x form Refund of Taxes Withheld in Error Multi-level marketing. Fillable 1040x form   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. Fillable 1040x form S. Fillable 1040x form income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. Fillable 1040x form You must also attach to the U. Fillable 1040x form S. Fillable 1040x form income tax return or claim for refund supporting information that includes, but is not limited to, the following items. Fillable 1040x form A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. Fillable 1040x form A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. Fillable 1040x form S. Fillable 1040x form taxation. Fillable 1040x form A statement listing all the dates you entered and left the United States during the taxable year. Fillable 1040x form If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. Fillable 1040x form A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. Fillable 1040x form A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. Fillable 1040x form Any further relevant document or record supporting your claim that the taxes were withheld in error. Fillable 1040x form Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. Fillable 1040x form It also includes 85% of social security benefits paid to nonresident aliens. Fillable 1040x form Refund of taxes withheld in error on social security benefits paid to resident aliens. Fillable 1040x form   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. Fillable 1040x form For U. Fillable 1040x form S. Fillable 1040x form income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Fillable 1040x form See Green Card Test in chapter 1. Fillable 1040x form If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Fillable 1040x form SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Fillable 1040x form If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Fillable 1040x form You must also attach the following to your Form 1040 or 1040A. Fillable 1040x form A copy of Form SSA-1042S, Social Security Benefit Statement. Fillable 1040x form A copy of the “green card. Fillable 1040x form ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. Fillable 1040x form S. Fillable 1040x form lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Fillable 1040x form I am filing a U. Fillable 1040x form S. Fillable 1040x form income tax return for the tax year as a resident alien reporting all of my worldwide income. Fillable 1040x form I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. Fillable 1040x form Other income not subject to withholding of 30% (or lower treaty) rate. Fillable 1040x form   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. Fillable 1040x form Income (other than compensation) that is effectively connected with your U. Fillable 1040x form S. Fillable 1040x form trade or business. Fillable 1040x form Income from real property that you choose to treat as effectively connected with a U. Fillable 1040x form S. Fillable 1040x form trade or business. Fillable 1040x form See Income From Real Property in chapter 4 for details about this choice. Fillable 1040x form   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. Fillable 1040x form Tax Withheld on Partnership Income If you are a foreign partner in a U. Fillable 1040x form S. Fillable 1040x form or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. Fillable 1040x form You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. Fillable 1040x form Generally, you must use Form 8804-C for this purpose. Fillable 1040x form See the Instructions for Form 8804-C for more information. Fillable 1040x form The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. Fillable 1040x form 6% for 2014). Fillable 1040x form However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. Fillable 1040x form Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. Fillable 1040x form Claim the tax withheld as a credit on your 2014 Form 1040NR. Fillable 1040x form The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Fillable 1040x form A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. Fillable 1040x form In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. Fillable 1040x form S. Fillable 1040x form Source Income Subject to Withholding. Fillable 1040x form Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. Fillable 1040x form See chapter 3. Fillable 1040x form If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. Fillable 1040x form S. Fillable 1040x form source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. Fillable 1040x form However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. Fillable 1040x form Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. Fillable 1040x form Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). Fillable 1040x form Use the following instructions instead of the Form W-4 instructions to complete the worksheet. Fillable 1040x form Line A. Fillable 1040x form   Enter the total of the following amounts on line A. Fillable 1040x form Personal exemption. Fillable 1040x form   Include the prorated part of your allowable personal exemption. Fillable 1040x form Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. Fillable 1040x form 82). Fillable 1040x form Expenses. Fillable 1040x form   Include expenses that will be deductible on your return. Fillable 1040x form These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. Fillable 1040x form They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. Fillable 1040x form Nontaxable grant or scholarship. Fillable 1040x form   Include the part of your grant or scholarship that is not taxable under U. Fillable 1040x form S. Fillable 1040x form law or under a tax treaty. Fillable 1040x form Line B. Fillable 1040x form   Enter -0- unless the following paragraph applies to you. Fillable 1040x form   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. Fillable 1040x form The standard deduction amount for 2013 is $6,100. Fillable 1040x form Lines C and D. Fillable 1040x form   Enter -0- on both lines unless the following paragraphs apply to you. Fillable 1040x form   If you are a resident of Canada, Mexico, South Korea, or a U. Fillable 1040x form S. Fillable 1040x form national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. Fillable 1040x form   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Fillable 1040x form S. Fillable 1040x form taxpayer's 2014 return. Fillable 1040x form You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form   Enter any additional amount for your spouse on line C. Fillable 1040x form Enter any additional amount for your dependents on line D. Fillable 1040x form Lines E, F, and G. Fillable 1040x form   No entries should be made on lines E, F, and G. Fillable 1040x form Line H. Fillable 1040x form   Add the amounts on lines A through D and enter the total on line H. Fillable 1040x form Form W-4. Fillable 1040x form   Complete lines 1 through 4 of Form W-4. Fillable 1040x form Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. Fillable 1040x form   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. Fillable 1040x form S. Fillable 1040x form income tax return to be allowed the exemptions and deductions you claimed on that form. Fillable 1040x form If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. Fillable 1040x form S. Fillable 1040x form income tax return for the previous year. Fillable 1040x form If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. Fillable 1040x form S. Fillable 1040x form income tax return when required. Fillable 1040x form After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. Fillable 1040x form The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. Fillable 1040x form You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. Fillable 1040x form Use this form to prepare your annual U. Fillable 1040x form S. Fillable 1040x form income tax return. Fillable 1040x form Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. Fillable 1040x form Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. Fillable 1040x form File Form W-8BEN for income that is not personal services income. Fillable 1040x form File Form 8233 for personal services income as discussed next. Fillable 1040x form Employees and independent contractors. Fillable 1040x form   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. Fillable 1040x form   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. Fillable 1040x form This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. Fillable 1040x form In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. Fillable 1040x form Students, teachers, and researchers. Fillable 1040x form   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. Fillable 1040x form For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. Fillable 1040x form   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. Fillable 1040x form Special events and promotions. Fillable 1040x form   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. Fillable 1040x form Form 13930 is used to request a reduction in withholding. Fillable 1040x form Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. Fillable 1040x form One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. Fillable 1040x form You will be required to pay U. Fillable 1040x form S. Fillable 1040x form tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. Fillable 1040x form For more details on treaty provisions that apply to compensation, see Publication 901. Fillable 1040x form Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. Fillable 1040x form S. Fillable 1040x form real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. Fillable 1040x form A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. Fillable 1040x form S. Fillable 1040x form real property interest by the shareholder is subject to withholding at 35%. Fillable 1040x form Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. Fillable 1040x form These rules are covered in Publication 515. Fillable 1040x form For information on the tax treatment of dispositions of U. Fillable 1040x form S. Fillable 1040x form real property interests, see Real Property Gain or Loss in chapter 4. Fillable 1040x form If you are a partner in a domestic partnership, and the partnership disposes of a U. Fillable 1040x form S. Fillable 1040x form real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. Fillable 1040x form Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. Fillable 1040x form S. Fillable 1040x form Source Income Subject to Withholding (in the case of a publicly traded partnership). Fillable 1040x form Withholding is not required in the following situations. Fillable 1040x form The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. Fillable 1040x form The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. Fillable 1040x form However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. Fillable 1040x form The property disposed of is an interest in a U. Fillable 1040x form S. Fillable 1040x form corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. Fillable 1040x form S. Fillable 1040x form real property interest. Fillable 1040x form You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. Fillable 1040x form S. Fillable 1040x form taxpayer identification number, and home address. Fillable 1040x form You can give the certification to a qualified substitute. Fillable 1040x form The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. Fillable 1040x form For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. Fillable 1040x form The buyer receives a withholding certificate from the Internal Revenue Service. Fillable 1040x form You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. Fillable 1040x form S. Fillable 1040x form tax treaty. Fillable 1040x form The buyer must file a copy of the notice with the Ogden Service Center, P. Fillable 1040x form O. Fillable 1040x form Box 409101, Ogden, UT 84409. Fillable 1040x form You must verify the notice as true and sign it under penalties of perjury. Fillable 1040x form The notice must contain the following information. Fillable 1040x form A statement that the notice is a notice of nonrecognition under regulation section 1. Fillable 1040x form 1445-2(d)(2). Fillable 1040x form Your name, taxpayer identification number, and home address. Fillable 1040x form A statement that you are not required to recognize any gain or loss on the transfer. Fillable 1040x form A brief description of the transfer. Fillable 1040x form A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. Fillable 1040x form You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. Fillable 1040x form Instead, a withholding certificate (described next) must be obtained. Fillable 1040x form The amount you realize on the transfer of a U. Fillable 1040x form S. Fillable 1040x form real property interest is zero. Fillable 1040x form The property is acquired by the United States, a U. Fillable 1040x form S. Fillable 1040x form state or possession, a political subdivision, or the District of Columbia. Fillable 1040x form The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. Fillable 1040x form S. Fillable 1040x form real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. Fillable 1040x form For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. Fillable 1040x form See Wash sale under Real Property Gain or Loss in chapter 4. Fillable 1040x form The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. Fillable 1040x form This also applies to the qualified substitute's statement under (4). Fillable 1040x form Withholding certificates. Fillable 1040x form   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. Fillable 1040x form Either you or the buyer can request a withholding certificate. Fillable 1040x form   A withholding certificate can be issued due to any of the following. Fillable 1040x form The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. Fillable 1040x form All of your realized gain is exempt from U. Fillable 1040x form S. Fillable 1040x form tax. Fillable 1040x form You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. Fillable 1040x form   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. Fillable 1040x form Credit for tax withheld. Fillable 1040x form   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. Fillable 1040x form S. Fillable 1040x form Withholding Tax Return for Dispositions by Foreign Persons of U. Fillable 1040x form S. Fillable 1040x form Real Property Interests. Fillable 1040x form This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Fillable 1040x form S. Fillable 1040x form Real Property Interests. Fillable 1040x form Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). Fillable 1040x form You must file Copy B with your tax return to take credit for the tax withheld. Fillable 1040x form   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. Fillable 1040x form The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. Fillable 1040x form When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. Fillable 1040x form Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. Fillable 1040x form Your payments of these taxes contribute to your coverage under the U. Fillable 1040x form S. Fillable 1040x form social security system. Fillable 1040x form Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. Fillable 1040x form In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. Fillable 1040x form All taxable wages are subject to Medicare tax. Fillable 1040x form Your employer deducts these taxes from each wage payment. Fillable 1040x form Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. Fillable 1040x form You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. Fillable 1040x form 40. Fillable 1040x form Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. Fillable 1040x form If any one employer deducted more than $7,049. Fillable 1040x form 40, you cannot claim a credit for that amount. Fillable 1040x form Ask your employer to refund the excess. Fillable 1040x form If your employer does not refund the excess, you can file a claim for refund using Form 843. Fillable 1040x form In general, U. Fillable 1040x form S. Fillable 1040x form social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. Fillable 1040x form In limited situations, these taxes apply to wages for services performed outside the United States. Fillable 1040x form Your employer should be able to tell you if social security and Medicare taxes apply to your wages. Fillable 1040x form You cannot make voluntary payments if no taxes are due. Fillable 1040x form Additional Medicare Tax. Fillable 1040x form   Beginning in 2013, in addition to the Medicare tax, a 0. Fillable 1040x form 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. Fillable 1040x form   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. Fillable 1040x form Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Fillable 1040x form   Your employer is responsible for withholding the 0. Fillable 1040x form 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. Fillable 1040x form If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. Fillable 1040x form   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Fillable 1040x form    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Fillable 1040x form For more information on Additional Medicare Tax, go to IRS. Fillable 1040x form gov and enter “Additional Medicare Tax” in the search box. Fillable 1040x form   Self-employed individuals may also be required to pay Additional Medicare Tax. Fillable 1040x form See Self-Employment Tax , later. Fillable 1040x form Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. Fillable 1040x form This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. Fillable 1040x form These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. Fillable 1040x form Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. Fillable 1040x form Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. Fillable 1040x form Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. Fillable 1040x form In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. Fillable 1040x form Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. Fillable 1040x form Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. Fillable 1040x form The U. Fillable 1040x form S. Fillable 1040x form Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. Fillable 1040x form S. Fillable 1040x form resident. Fillable 1040x form On-campus work means work performed on the school's premises. Fillable 1040x form On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. Fillable 1040x form On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. Fillable 1040x form Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. Fillable 1040x form If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Fillable 1040x form Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. Fillable 1040x form Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. Fillable 1040x form If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Fillable 1040x form Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. Fillable 1040x form The employer must be the petitioner through whom the alien obtained the “Q” visa. Fillable 1040x form Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. Fillable 1040x form Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Fillable 1040x form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Fillable 1040x form Attach the following items to Form 843. Fillable 1040x form A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. Fillable 1040x form A copy of your visa. Fillable 1040x form Form I-94 (or other documentation showing your dates of arrival or departure). Fillable 1040x form If you have an F-1 visa, documentation showing permission to work in the U. Fillable 1040x form S. Fillable 1040x form If you have a J-1 visa, documentation showing permission to work in the U. Fillable 1040x form S. Fillable 1040x form If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. Fillable 1040x form S. Fillable 1040x form A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. Fillable 1040x form If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. Fillable 1040x form If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. Fillable 1040x form File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. Fillable 1040x form Do not use Form 843 to request a refund of Additional Medicare Tax. Fillable 1040x form If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. Fillable 1040x form If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. Fillable 1040x form S. Fillable 1040x form Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. Fillable 1040x form See the Instructions for Form 1040X. Fillable 1040x form Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. Fillable 1040x form You can find more information about not having tax withheld at www. Fillable 1040x form irs. Fillable 1040x form gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Fillable 1040x form Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. Fillable 1040x form Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. Fillable 1040x form S. Fillable 1040x form social security system. Fillable 1040x form Residents of the U. Fillable 1040x form S. Fillable 1040x form Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. Fillable 1040x form S. Fillable 1040x form residents for this purpose and are subject to the self-employment tax. Fillable 1040x form Resident aliens must pay self-employment tax under the same rules that apply to U. Fillable 1040x form S. Fillable 1040x form citizens. Fillable 1040x form However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. Fillable 1040x form Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. Fillable 1040x form Example. Fillable 1040x form Bill Jones is an author engaged in the business of writing books. Fillable 1040x form Bill had several books published in a foreign country while he was a citizen and resident of that country. Fillable 1040x form During 2013, Bill entered the United States as a resident alien. Fillable 1040x form After becoming a U. Fillable 1040x form S. Fillable 1040x form resident, he continued to receive royalties from his foreign publisher. Fillable 1040x form Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). Fillable 1040x form Bill's 2013 self-employment income includes the royalties received after he became a U. Fillable 1040x form S. Fillable 1040x form resident even though the books were published while he was a nonresident alien. Fillable 1040x form This royalty income is subject to self-employment tax. Fillable 1040x form Reporting self-employment tax. Fillable 1040x form   Use Schedule SE (Form 1040) to report and figure your self-employment tax. Fillable 1040x form Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. Fillable 1040x form Attach Schedule SE to Form 1040 or Form 1040NR. Fillable 1040x form Additional Medicare Tax. Fillable 1040x form   Self-employed individuals must pay a 0. Fillable 1040x form 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. Fillable 1040x form   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. Fillable 1040x form A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Fillable 1040x form   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Fillable 1040x form For more information on Additional Medicare Tax, go to IRS. Fillable 1040x form gov and enter “Additional Medicare Tax” in the search box. Fillable 1040x form Deduction for employer-equivalent portion of self-employment tax. Fillable 1040x form   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. Fillable 1040x form This deduction is figured on Schedule SE (Form 1040). Fillable 1040x form Note. Fillable 1040x form No portion of the Additional Medicare Tax is deductible for self-employment tax. Fillable 1040x form More information. Fillable 1040x form   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. Fillable 1040x form International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. Fillable 1040x form These agreements are commonly referred to as totalization agreements. Fillable 1040x form Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Fillable 1040x form The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. Fillable 1040x form Agreements are in effect with the following countries. Fillable 1040x form Australia. Fillable 1040x form Austria. Fillable 1040x form Belgium. Fillable 1040x form Canada. Fillable 1040x form Chile. Fillable 1040x form Czech Republic. Fillable 1040x form Denmark. Fillable 1040x form Finland. Fillable 1040x form France. Fillable 1040x form Germany. Fillable 1040x form Greece. Fillable 1040x form Ireland. Fillable 1040x form Italy. Fillable 1040x form Japan. Fillable 1040x form Korea, South. Fillable 1040x form Luxembourg. Fillable 1040x form The Netherlands. Fillable 1040x form Norway. Fillable 1040x form Poland. Fillable 1040x form Portugal. Fillable 1040x form Spain. Fillable 1040x form Sweden. Fillable 1040x form Switzerland. Fillable 1040x form The United Kingdom. Fillable 1040x form Agreements with other countries are expected to enter into force in the future. Fillable 1040x form Employees. Fillable 1040x form   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. Fillable 1040x form However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. Fillable 1040x form You can get more information on any agreement by contacting the U. Fillable 1040x form S. Fillable 1040x form Social Security Administration at the address given later. Fillable 1040x form If you have access to the Internet, you can get more information at www. Fillable 1040x form socialsecurity. Fillable 1040x form gov/international. Fillable 1040x form   To establish that your pay is subject only to foreign social security taxes and is exempt from U. Fillable 1040x form S. Fillable 1040x form social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. Fillable 1040x form This will usually be the same agency to which you or your employer pays your foreign social security taxes. Fillable 1040x form The foreign agency will be able to tell you what information is needed for them to issue the certificate. Fillable 1040x form Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. Fillable 1040x form S. Fillable 1040x form social security taxes. Fillable 1040x form Only wages paid on or after the effective date of the agreement can be exempt from U. Fillable 1040x form S. Fillable 1040x form social security taxes. Fillable 1040x form    Some of the countries with which the United States has agreements will not issue certificates of coverage. Fillable 1040x form In this case, either you or your employer should request a statement that your wages are not covered by the U. Fillable 1040x form S. Fillable 1040x form social security system. Fillable 1040x form Request the statement from the following address. Fillable 1040x form U. Fillable 1040x form S. Fillable 1040x form Social Security Administration Office of International Programs P. Fillable 1040x form O. Fillable 1040x form Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. Fillable 1040x form   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. Fillable 1040x form However, under some agreements, you may be exempt from U. Fillable 1040x form S. Fillable 1040x form self-employment tax if you temporarily transfer your business activity to or from the United States. Fillable 1040x form   If you believe that your self-employment income is subject only to U. Fillable 1040x form S. Fillable 1040x form self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. Fillable 1040x form S. Fillable 1040x form Social Security Administration at the address given earlier. Fillable 1040x form This certificate will establish your exemption from foreign social security taxes. Fillable 1040x form   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. Fillable 1040x form S. Fillable 1040x form self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. Fillable 1040x form If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. Fillable 1040x form S. Fillable 1040x form social security system. Fillable 1040x form Request it from the U. Fillable 1040x form S. Fillable 1040x form Social Security Administration at the address given earlier. Fillable 1040x form Attach a photocopy of either statement to Form 1040 each year you are exempt. Fillable 1040x form Also print “Exempt, see attached statement” on the line for self-employment tax. Fillable 1040x form Estimated Tax Form 1040-ES (NR) You may have income from which no U. Fillable 1040x form S. Fillable 1040x form income tax is withheld. Fillable 1040x form Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. Fillable 1040x form If so, you may have to pay estimated tax. Fillable 1040x form Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). Fillable 1040x form If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. Fillable 1040x form Item (2) does not apply if you did not file a 2013 return. Fillable 1040x form A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. Fillable 1040x form If you pay by check, make it payable to the "United States Treasury. Fillable 1040x form " How to estimate your tax for 2014. Fillable 1040x form   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. Fillable 1040x form If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. Fillable 1040x form Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. Fillable 1040x form Note. Fillable 1040x form If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). Fillable 1040x form When to pay estimated tax. Fillable 1040x form   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. Fillable 1040x form If you have wages subject to the same withholding rules that apply to U. Fillable 1040x form S. Fillable 1040x form citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. Fillable 1040x form If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. Fillable 1040x form   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. Fillable 1040x form 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. Fillable 1040x form 15, 2014 4th installment Jan. Fillable 1040x form 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. Fillable 1040x form    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. Fillable 1040x form Fiscal year. Fillable 1040x form   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. Fillable 1040x form If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. Fillable 1040x form Changes in income, deductions, or exemptions. Fillable 1040x form   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. Fillable 1040x form This can happen if you receive additional income or if any of your deductions are reduced or eliminated. Fillable 1040x form If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. Fillable 1040x form Amended estimated tax. Fillable 1040x form   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. Fillable 1040x form To do this, see the instructions for Form 1040-ES (NR) and Publication 505. Fillable 1040x form Penalty for failure to pay estimated income tax. Fillable 1040x form   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. Fillable 1040x form These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Fillable 1040x form Prev  Up  Next   Home   More Online Publications