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Form 1040ez More:label_form_201040ez More:taxes

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Form 1040ez More:label_form_201040ez More:taxes

Form 1040ez more:label_form_201040ez more:taxes Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. Form 1040ez more:label_form_201040ez more:taxes Tax-deferred plans. Form 1040ez more:label_form_201040ez more:taxes Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. Form 1040ez more:label_form_201040ez more:taxes Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. Form 1040ez more:label_form_201040ez more:taxes That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. Form 1040ez more:label_form_201040ez more:taxes Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. Form 1040ez more:label_form_201040ez more:taxes Saving clause. Form 1040ez more:label_form_201040ez more:taxes   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizens) or of the United States to tax its residents or citizens (including U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizens who are residents of the foreign country). Form 1040ez more:label_form_201040ez more:taxes This provision is known as the “saving clause. Form 1040ez more:label_form_201040ez more:taxes ”   For example, an individual who is a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen and a resident of Canada may have dividend income from a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes corporation. Form 1040ez more:label_form_201040ez more:taxes The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. Form 1040ez more:label_form_201040ez more:taxes Even though a resident of Canada, the individual is a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen and the saving clause overrides the treaty article that limits the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax to 15%. Form 1040ez more:label_form_201040ez more:taxes    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. Form 1040ez more:label_form_201040ez more:taxes Treaty-based position. Form 1040ez more:label_form_201040ez more:taxes   If you take the position that any U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax is overruled or otherwise reduced by a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. Form 1040ez more:label_form_201040ez more:taxes Personal Services A U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. Form 1040ez more:label_form_201040ez more:taxes Income from employment (Article XV). Form 1040ez more:label_form_201040ez more:taxes   Income U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. Form 1040ez more:label_form_201040ez more:taxes If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. Form 1040ez more:label_form_201040ez more:taxes    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. Form 1040ez more:label_form_201040ez more:taxes Example. Form 1040ez more:label_form_201040ez more:taxes You are a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. Form 1040ez more:label_form_201040ez more:taxes During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. Form 1040ez more:label_form_201040ez more:taxes Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. Form 1040ez more:label_form_201040ez more:taxes Pay received by a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident is exempt from Canadian tax. Form 1040ez more:label_form_201040ez more:taxes Income from self-employment (Article VII). Form 1040ez more:label_form_201040ez more:taxes   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. Form 1040ez more:label_form_201040ez more:taxes This income is treated as business profits, and deductions similar to those allowed under U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes law are allowable. Form 1040ez more:label_form_201040ez more:taxes   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. Form 1040ez more:label_form_201040ez more:taxes The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. Form 1040ez more:label_form_201040ez more:taxes   You may be considered to have a permanent establishment if you meet certain conditions. Form 1040ez more:label_form_201040ez more:taxes For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). Form 1040ez more:label_form_201040ez more:taxes Public entertainers (Article XVI). Form 1040ez more:label_form_201040ez more:taxes   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. Form 1040ez more:label_form_201040ez more:taxes However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. Form 1040ez more:label_form_201040ez more:taxes Compensation paid by the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes Government (Article XIX). Form 1040ez more:label_form_201040ez more:taxes   Wages, salaries, and similar income (other than pensions) paid to a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. Form 1040ez more:label_form_201040ez more:taxes   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. Form 1040ez more:label_form_201040ez more:taxes Students and apprentices (Article XX). Form 1040ez more:label_form_201040ez more:taxes   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. Form 1040ez more:label_form_201040ez more:taxes The recipient must be or must have been a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident immediately before visiting Canada. Form 1040ez more:label_form_201040ez more:taxes   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. Form 1040ez more:label_form_201040ez more:taxes Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). Form 1040ez more:label_form_201040ez more:taxes Canadian pensions and annuities paid to U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents may be taxed by the United States, but the amount of any pension included in income for U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. Form 1040ez more:label_form_201040ez more:taxes Pensions. Form 1040ez more:label_form_201040ez more:taxes   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. Form 1040ez more:label_form_201040ez more:taxes It includes pensions paid by private employers and the government for services rendered. Form 1040ez more:label_form_201040ez more:taxes   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. Form 1040ez more:label_form_201040ez more:taxes   Pensions do not include social security benefits. Form 1040ez more:label_form_201040ez more:taxes Roth IRAs. Form 1040ez more:label_form_201040ez more:taxes   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax if paid to a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident. Form 1040ez more:label_form_201040ez more:taxes In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. Form 1040ez more:label_form_201040ez more:taxes However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. Form 1040ez more:label_form_201040ez more:taxes Tax-deferred plans. Form 1040ez more:label_form_201040ez more:taxes   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax, even if it is not distributed. Form 1040ez more:label_form_201040ez more:taxes However, a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen or resident can elect to defer U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax on income from the plan until the income is distributed. Form 1040ez more:label_form_201040ez more:taxes Form 8891 is used to make the election. Form 1040ez more:label_form_201040ez more:taxes Annuities. Form 1040ez more:label_form_201040ez more:taxes    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). Form 1040ez more:label_form_201040ez more:taxes Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. Form 1040ez more:label_form_201040ez more:taxes Special rules. Form 1040ez more:label_form_201040ez more:taxes    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. Form 1040ez more:label_form_201040ez more:taxes Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. Form 1040ez more:label_form_201040ez more:taxes Social security benefits. Form 1040ez more:label_form_201040ez more:taxes   U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. Form 1040ez more:label_form_201040ez more:taxes Alimony. Form 1040ez more:label_form_201040ez more:taxes   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents are exempt from Canadian tax. Form 1040ez more:label_form_201040ez more:taxes For purposes of U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. Form 1040ez more:label_form_201040ez more:taxes Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. Form 1040ez more:label_form_201040ez more:taxes Dividends (Article X). Form 1040ez more:label_form_201040ez more:taxes   For Canadian source dividends received by U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents, the Canadian income tax generally may not be more than 15%. Form 1040ez more:label_form_201040ez more:taxes   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. Form 1040ez more:label_form_201040ez more:taxes However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. Form 1040ez more:label_form_201040ez more:taxes   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. Form 1040ez more:label_form_201040ez more:taxes Interest (Article XI). Form 1040ez more:label_form_201040ez more:taxes   Generally, Canadian source interest received by U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents is exempt from Canadian income tax. Form 1040ez more:label_form_201040ez more:taxes   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. Form 1040ez more:label_form_201040ez more:taxes Gains from the sale of property (Article XIII). Form 1040ez more:label_form_201040ez more:taxes   Generally, gains from the sale of personal property by a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident having no permanent establishment in Canada are exempt from Canadian income tax. Form 1040ez more:label_form_201040ez more:taxes However, the exemption from Canadian tax does not apply to gains realized by U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. Form 1040ez more:label_form_201040ez more:taxes   If the property subject to Canadian tax is a capital asset and was owned by the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. Form 1040ez more:label_form_201040ez more:taxes Royalties (Article XII). Form 1040ez more:label_form_201040ez more:taxes   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. Form 1040ez more:label_form_201040ez more:taxes   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. Form 1040ez more:label_form_201040ez more:taxes   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. Form 1040ez more:label_form_201040ez more:taxes Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. Form 1040ez more:label_form_201040ez more:taxes Gambling losses. Form 1040ez more:label_form_201040ez more:taxes   Canadian residents may deduct gambling losses in the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes against gambling winnings in the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes in the same manner as a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes resident. Form 1040ez more:label_form_201040ez more:taxes Charitable Contributions United States income tax return. Form 1040ez more:label_form_201040ez more:taxes   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. Form 1040ez more:label_form_201040ez more:taxes Besides being subject to the overall limits applicable to all your charitable contributions under U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes percentage limits on charitable contributions, applied to your Canadian source income. Form 1040ez more:label_form_201040ez more:taxes If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. Form 1040ez more:label_form_201040ez more:taxes Example. Form 1040ez more:label_form_201040ez more:taxes You are a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen living in Canada. Form 1040ez more:label_form_201040ez more:taxes You have both U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes and Canadian source income. Form 1040ez more:label_form_201040ez more:taxes During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax law if they were U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes organizations. Form 1040ez more:label_form_201040ez more:taxes To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes income tax law. Form 1040ez more:label_form_201040ez more:taxes Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes income tax law. Form 1040ez more:label_form_201040ez more:taxes The appropriate percentage limit for U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax purposes is applied to your total adjusted gross income from all sources. Form 1040ez more:label_form_201040ez more:taxes Qualified charities. Form 1040ez more:label_form_201040ez more:taxes   These Canadian organizations must meet the qualifications that a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes charitable organization must meet under U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes tax law. Form 1040ez more:label_form_201040ez more:taxes Usually an organization will notify you if it qualifies. Form 1040ez more:label_form_201040ez more:taxes For further information on charitable contributions and the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes percentage limits, see Publication 526, Charitable Contributions. Form 1040ez more:label_form_201040ez more:taxes Canadian income tax return. Form 1040ez more:label_form_201040ez more:taxes   Under certain conditions, contributions to qualified U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. Form 1040ez more:label_form_201040ez more:taxes Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. Form 1040ez more:label_form_201040ez more:taxes In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. Form 1040ez more:label_form_201040ez more:taxes For detailed discussions of the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. Form 1040ez more:label_form_201040ez more:taxes See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizens residing in Canada. Form 1040ez more:label_form_201040ez more:taxes Competent Authority Assistance Under Article XXVI, a U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes citizen or resident may request assistance from the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. Form 1040ez more:label_form_201040ez more:taxes The U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. Form 1040ez more:label_form_201040ez more:taxes If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. Form 1040ez more:label_form_201040ez more:taxes It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. Form 1040ez more:label_form_201040ez more:taxes This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. Form 1040ez more:label_form_201040ez more:taxes For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. Form 1040ez more:label_form_201040ez more:taxes irs. Form 1040ez more:label_form_201040ez more:taxes gov/irb/2006-49_IRB/ar13. Form 1040ez more:label_form_201040ez more:taxes html. Form 1040ez more:label_form_201040ez more:taxes The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. Form 1040ez more:label_form_201040ez more:taxes , NW Routing: MA3-322A Washington, D. Form 1040ez more:label_form_201040ez more:taxes C. Form 1040ez more:label_form_201040ez more:taxes 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. Form 1040ez more:label_form_201040ez more:taxes This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. Form 1040ez more:label_form_201040ez more:taxes For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. Form 1040ez more:label_form_201040ez more:taxes Attach your protective claim to your request for competent authority assistance. Form 1040ez more:label_form_201040ez more:taxes Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. Form 1040ez more:label_form_201040ez more:taxes How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS and the Canada Revenue Agency in several ways. Form 1040ez more:label_form_201040ez more:taxes Text of Treaty You can get the text of the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes —Canada income tax treaty from: Superintendent of Documents U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes Government Printing Office P. Form 1040ez more:label_form_201040ez more:taxes O. Form 1040ez more:label_form_201040ez more:taxes Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. Form 1040ez more:label_form_201040ez more:taxes gov. Form 1040ez more:label_form_201040ez more:taxes U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. Form 1040ez more:label_form_201040ez more:taxes To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes Embassy or consulate. Form 1040ez more:label_form_201040ez more:taxes Mail. Form 1040ez more:label_form_201040ez more:taxes For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. Form 1040ez more:label_form_201040ez more:taxes You can call the IRS for help at (267) 941-1000 (not a toll-free call). Form 1040ez more:label_form_201040ez more:taxes Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. Form 1040ez more:label_form_201040ez more:taxes The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. Form 1040ez more:label_form_201040ez more:taxes S. Form 1040ez more:label_form_201040ez more:taxes ) or on the Internet at www. Form 1040ez more:label_form_201040ez more:taxes cra-arc. Form 1040ez more:label_form_201040ez more:taxes gc. Form 1040ez more:label_form_201040ez more:taxes ca. Form 1040ez more:label_form_201040ez more:taxes Prev  Up  Next   Home   More Online Publications
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Tax Information for Members of the U.S. Armed Forces

For federal tax purposes, the U.S. Armed Forces includes officers and enlisted personnel in all regular and reserve units controlled by the Secretaries of Defense, the Army, Navy and Air Force. The Coast Guard is also included, but not the U.S. Merchant Marine or the American Red Cross. However, these and other support personnel may qualify for certain tax deadline extensions because of their service in a combat zone.

IRS YouTube Video
Combat Pay:
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Military Tax Tips: English | Spanish | ASL


Consumer Alert

June 2012

Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida.

The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

For more information on phishing scams, please see Suspicious e-Mails and Identity Theft.


Tax Laws Affecting the Military

These tax laws provide some special benefits for active members of the U.S. Armed Forces, including those serving in combat zones.


Combat Zones


Publications

  • Publication 3, Armed Forces' Tax Guide, addresses a wide range of issues that may affect members of the military:
    • Online — browse the publication to find specific information;
    • Portable Document Format (PDF) — download a copy to read later or print select pages;
    • Hardcopy — order a paper copy by calling 1-800-829-3676. 


News Releases (IR) and Fact Sheets (FS) 

  • IR-2010-47 — Haiti Relief Workers Qualify for Combat Zone Extension; Military Personnel and Designated Civilians Have at Least 180 Days to File and Pay
  • IR-2007-46 — Free Online Tax Filing Available to Many Military Members
  • IR-2006-152 — Active Duty Reservists Get Relief on Retirement Plan Payments; Refunds of 10-Percent Tax Available Back to 2001, New Law Says
  • IR-2006-129 — New Law Expands IRA Options for Military; Many Can Still Contribute for 2004 and 2005
  • IR-2003-132 — IRS Helps Military Personnel Get New Law's Tax Breaks
  • IR-2003-63 — New Tax Scam Targets Families of Armed Forces Members
  • IR-2003-43 — Tax Assistance for Military Families; IRS.gov Page for Armed Forces
  • FS-2003-11 — Information for Taxpayers Serving in the Armed Forces
  • IR-2002-18 — Tax Relief for Troops in the Afghanistan Combat Zone.


Legal Guidance

  • Revenue Ruling 2009-11 — Differential Wage Payments to Active Duty Members of the Uniformed Services
  • Notice 2003-21 — Tax Relief for Those Involved in Operation Iraqi Freedom.
  • Notice 2002-17 — Tax Relief for Those Involved in Operation Enduring Freedom.


Related Items:

Page Last Reviewed or Updated: 04-Sep-2013

The Form 1040ez More:label_form_201040ez More:taxes

Form 1040ez more:label_form_201040ez more:taxes Index A Adjusted basis for installment sale, Adjusted basis for installment sale purposes. Form 1040ez more:label_form_201040ez more:taxes Assistance (see Tax help) B Basis Adjusted, Adjusted basis. Form 1040ez more:label_form_201040ez more:taxes Assumed mortgage, Buyer Assumes Mortgage Installment obligation, Basis. Form 1040ez more:label_form_201040ez more:taxes , Basis in installment obligation. Form 1040ez more:label_form_201040ez more:taxes , Basis in installment obligation. Form 1040ez more:label_form_201040ez more:taxes Installment sale, Adjusted basis for installment sale purposes. Form 1040ez more:label_form_201040ez more:taxes Repossessed property, Basis in repossessed property. Form 1040ez more:label_form_201040ez more:taxes , Basis. Form 1040ez more:label_form_201040ez more:taxes Bond, Bond. Form 1040ez more:label_form_201040ez more:taxes Buyer's note, Buyer's note. Form 1040ez more:label_form_201040ez more:taxes C Contingent payment sale, Contingent Payment Sale Contract price, Contract price. Form 1040ez more:label_form_201040ez more:taxes D Dealer sales, special rule, Dealer sales. Form 1040ez more:label_form_201040ez more:taxes Depreciation recapture income, Depreciation Recapture Income Disposition of installment obligation, Disposition of an Installment Obligation E Electing out, Electing Out of the Installment Method Escrow account, Escrow Account F Fair market value, Fair market value (FMV). Form 1040ez more:label_form_201040ez more:taxes , Fair market value (FMV). Form 1040ez more:label_form_201040ez more:taxes Figuring installment sale income, Figuring Installment Sale Income Form 4797, Form 4797, Form 4797. Form 1040ez more:label_form_201040ez more:taxes 6252, Form 6252, Reporting an Installment Sale 8594, Reporting requirement. Form 1040ez more:label_form_201040ez more:taxes Schedule D (Form 1040), Schedule D (Form 1040), Other forms. Form 1040ez more:label_form_201040ez more:taxes , Schedule D (Form 1040). Form 1040ez more:label_form_201040ez more:taxes Free tax services, Free help with your tax return. Form 1040ez more:label_form_201040ez more:taxes G Gross profit percentage, Gross profit percentage. Form 1040ez more:label_form_201040ez more:taxes Gross profit, defined, Gross profit. Form 1040ez more:label_form_201040ez more:taxes Guarantee, Debt not payable on demand. Form 1040ez more:label_form_201040ez more:taxes H Help (see Tax help) I Installment obligation Defined, Installment obligation. Form 1040ez more:label_form_201040ez more:taxes Disposition, Disposition of an Installment Obligation Used as security, Installment Obligation Used as Security (Pledge Rule) Installment Sale, What Is an Installment Sale? Interest Escrow account, Escrow Account Income, Interest Income Reporting, Seller-financed mortgage. Form 1040ez more:label_form_201040ez more:taxes Unstated, Installment income after 2013. Form 1040ez more:label_form_201040ez more:taxes Interest on deferred tax, Interest on Deferred Tax Exceptions, Exceptions. Form 1040ez more:label_form_201040ez more:taxes L Like-kind exchange, Like-Kind Exchange N Note Buyer's, Buyer's note. Form 1040ez more:label_form_201040ez more:taxes Third-party, Third-party note. Form 1040ez more:label_form_201040ez more:taxes O Original issue discount, Installment income after 2013. Form 1040ez more:label_form_201040ez more:taxes P Payments considered received, Payments Received or Considered Received Buyer assumes debts, Buyer Assumes Other Debts Buyer pays seller's expenses, Buyer Pays Seller's Expenses Mortgage assumed, Buyer Assumes Mortgage Pledge rule, Installment Obligation Used as Security (Pledge Rule) Payments received, Payments Received or Considered Received Pledge rule, Installment Obligation Used as Security (Pledge Rule) Publications (see Tax help) R Related person Land sale, Land transfers between related persons. Form 1040ez more:label_form_201040ez more:taxes Reporting sale to, Related person. Form 1040ez more:label_form_201040ez more:taxes Sale to, Sale to a Related Person Reporting installment sale, Reporting Installment Sale Income, Reporting an Installment Sale Repossession, Repossession Holding period for resale, Holding period for resales. Form 1040ez more:label_form_201040ez more:taxes Personal property, Personal Property Real property, Real Property S Sale at a loss, Sale at a loss. Form 1040ez more:label_form_201040ez more:taxes Sale of Business, Sale of a Business Home, Sale of Your Home Land between related persons, Land transfers between related persons. Form 1040ez more:label_form_201040ez more:taxes Partnership interest, Sale of Partnership Interest Several assets, Single Sale of Several Assets, Several assets. Form 1040ez more:label_form_201040ez more:taxes Stock or securities, Stock or securities. Form 1040ez more:label_form_201040ez more:taxes Sales by dealers, Dealer sales. Form 1040ez more:label_form_201040ez more:taxes Section 1274, Section 1274 Exceptions, Exceptions to Sections 1274 and 483 Section 483, Section 483 Exceptions, Exceptions to Sections 1274 and 483 Selling expenses, Selling expenses. Form 1040ez more:label_form_201040ez more:taxes Selling price Defined, Selling price. Form 1040ez more:label_form_201040ez more:taxes Reduced, Selling Price Reduced Single sale of several assets, Single Sale of Several Assets, Several assets. Form 1040ez more:label_form_201040ez more:taxes T Tax help, How To Get Tax Help Third-party note, Third-party note. Form 1040ez more:label_form_201040ez more:taxes TTY/TDD information, How To Get Tax Help U Unstated interest, Installment income after 2013. Form 1040ez more:label_form_201040ez more:taxes Prev  Up     Home   More Online Publications