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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Free 1040 Ez Filing

H&r Block Tax FormsState Tax Return Free2014 Form 1040ezFiling An Amended ReturnHelp Filling Out 1040xIrs Gov Form 1040How To Get 2012 Tax FormsState Income Tax ReturnArmy Free Turbo TaxHow To Fill Out A 1040ezFree H And R Block OnlineH&r Tax CutEfile 1040ezEz Tax Form 2011Instructions For Filing An Amended Tax ReturnTax Amendment DeadlineFiling Previous Years Taxes2012 Tax PreparationAmended Income Tax ReturnCheapest State Tax FilingFree Tax Preparation MilitaryTaxaid Com1040nr 2013Www Irs Govlefile2009 Federal Tax Forms1040ez Instruction BookletFree State Filing TaxesIncome Tax 1040ezIrs 2012 Tax Return Forms1040 Tax Forms For 2012Free Tax PreparationH&r Block Military TaxH&r Block Online2011 Taxes Free2007 Income Tax OnlineFree 1040ez FilingFree Federal Income Tax FilingForm 1040nr 20121040ez Tax Forms2010 Tax Return

Free 1040 Ez Filing

Free 1040 ez filing 1. Free 1040 ez filing   Nonresident Alien or Resident Alien? Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Nonresident Aliens Resident AliensGreen Card Test Substantial Presence Test Effect of Tax Treaties Dual-Status AliensFirst Year of Residency Choosing Resident Alien Status Last Year of Residency Nonresident Spouse Treated as a ResidentHow To Make the Choice Aliens From American Samoa or Puerto Rico Introduction You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien. Free 1040 ez filing If you are both a nonresident and resident in the same year, you have a dual status. Free 1040 ez filing Dual status is explained later. Free 1040 ez filing Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. Free 1040 ez filing Topics - This chapter discusses: How to determine if you are a nonresident, resident, or dual-status alien, and How to treat a nonresident spouse as a resident alien. Free 1040 ez filing Useful Items - You may want to see: Form (and Instructions) 1040 U. Free 1040 ez filing S. Free 1040 ez filing Individual Income Tax Return 1040A U. Free 1040 ez filing S. Free 1040 ez filing Individual Income Tax Return 1040NR U. Free 1040 ez filing S. Free 1040 ez filing Nonresident Alien Income Tax Return 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 8840 Closer Connection Exception Statement for Aliens 8843 Statement for Exempt Individuals and Individuals With a Medical Condition See chapter 12 for information about getting these forms. Free 1040 ez filing Nonresident Aliens If you are an alien (not a U. Free 1040 ez filing S. Free 1040 ez filing citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. Free 1040 ez filing Resident Aliens You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2013 (January 1–December 31). Free 1040 ez filing Even if you do not meet either of these tests, you may be able to choose to be treated as a U. Free 1040 ez filing S. Free 1040 ez filing resident for part of the year. Free 1040 ez filing See First-Year Choice under Dual-Status Aliens, later. Free 1040 ez filing Green Card Test You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. Free 1040 ez filing (However, see Dual-Status Aliens , later. Free 1040 ez filing ) This is known as the “green card” test. Free 1040 ez filing You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. Free 1040 ez filing You generally have this status if the U. Free 1040 ez filing S. Free 1040 ez filing Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. Free 1040 ez filing ” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. Free 1040 ez filing Resident status taken away. Free 1040 ez filing   Resident status is considered to have been taken away from you if the U. Free 1040 ez filing S. Free 1040 ez filing government issues you a final administrative or judicial order of exclusion or deportation. Free 1040 ez filing A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. Free 1040 ez filing Resident status abandoned. Free 1040 ez filing   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. Free 1040 ez filing S. Free 1040 ez filing consular officer. Free 1040 ez filing    If you initiate the determination, your resident status is considered to be abandoned when you file either of the following with the USCIS or U. Free 1040 ez filing S. Free 1040 ez filing consular officer. Free 1040 ez filing Your application for abandonment. Free 1040 ez filing Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. Free 1040 ez filing You must file the letter by certified mail, return receipt requested. Free 1040 ez filing You must keep a copy of the letter and proof that it was mailed and received. Free 1040 ez filing    Until you have proof your letter was received, you remain a resident alien for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time. Free 1040 ez filing   If the USCIS or U. Free 1040 ez filing S. Free 1040 ez filing consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. Free 1040 ez filing If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. Free 1040 ez filing   Under U. Free 1040 ez filing S. Free 1040 ez filing immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Free 1040 ez filing    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. Free 1040 ez filing See Expatriation Tax in chapter 4. Free 1040 ez filing Termination of residency after June 3, 2004, and before June 17, 2008. Free 1040 ez filing   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. Free 1040 ez filing S. Free 1040 ez filing resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. Free 1040 ez filing Termination of residency after June 16, 2008. Free 1040 ez filing   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. Free 1040 ez filing Substantial Presence Test You will be considered a U. Free 1040 ez filing S. Free 1040 ez filing resident for tax purposes if you meet the substantial presence test for calendar year 2013. Free 1040 ez filing To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011. Free 1040 ez filing Example. Free 1040 ez filing You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. Free 1040 ez filing To determine if you meet the substantial presence test for 2013, count the full 120 days of presence in 2013, 40 days in 2012 (1/3 of 120), and 20 days in 2011 (1/6 of 120). Free 1040 ez filing Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. Free 1040 ez filing The term United States includes the following areas. Free 1040 ez filing All 50 states and the District of Columbia. Free 1040 ez filing The territorial waters of the United States. Free 1040 ez filing The seabed and subsoil of those submarine areas that are adjacent to U. Free 1040 ez filing S. Free 1040 ez filing territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. Free 1040 ez filing The term does not include U. Free 1040 ez filing S. Free 1040 ez filing possessions and territories or U. Free 1040 ez filing S. Free 1040 ez filing airspace. Free 1040 ez filing Days of Presence in the United States You are treated as present in the United States on any day you are physically present in the country at any time during the day. Free 1040 ez filing However, there are exceptions to this rule. Free 1040 ez filing Do not count the following as days of presence in the United States for the substantial presence test. Free 1040 ez filing Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. Free 1040 ez filing Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. Free 1040 ez filing Days you are in the United States as a crew member of a foreign vessel. Free 1040 ez filing Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. Free 1040 ez filing Days you are an exempt individual. Free 1040 ez filing The specific rules that apply to each of these categories are discussed next. Free 1040 ez filing Regular commuters from Canada or Mexico. Free 1040 ez filing   Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. Free 1040 ez filing You are considered to commute regularly if you commute to work in the United States on more than 75% of the workdays during your working period. Free 1040 ez filing   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. Free 1040 ez filing “Workdays” are the days on which you work in the United States or Canada or Mexico. Free 1040 ez filing “Working period” means the period beginning with the first day in the current year on which you are physically present in the United States to work and ending on the last day in the current year on which you are physically present in the United States to work. Free 1040 ez filing If your work requires you to be present in the United States only on a seasonal or cyclical basis, your working period begins on the first day of the season or cycle on which you are present in the United States to work and ends on the last day of the season or cycle on which you are present in the United States to work. Free 1040 ez filing You can have more than one working period in a calendar year, and your working period can begin in one calendar year and end in the following calendar year. Free 1040 ez filing Example. Free 1040 ez filing Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. Free 1040 ez filing She was assigned to her firm's office in the United States from February 1 through June 1. Free 1040 ez filing On June 2, she resumed her employment in Mexico. Free 1040 ez filing On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. Free 1040 ez filing S. Free 1040 ez filing office. Free 1040 ez filing She returned to her home in Mexico on each of those evenings. Free 1040 ez filing On 7 days, she worked in her firm's Mexico office. Free 1040 ez filing For purposes of the substantial presence test, Maria does not count the days she commuted to work in the United States because those days equal more than 75% of the workdays during the working period (69 workdays in the United States divided by 76 workdays in the working period equals 90. Free 1040 ez filing 8%). Free 1040 ez filing Days in transit. Free 1040 ez filing   Do not count the days you are in the United States for less than 24 hours and you are in transit between two places outside the United States. Free 1040 ez filing You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. Free 1040 ez filing For example, if you travel between airports in the United States to change planes en route to your foreign destination, you are considered to be in transit. Free 1040 ez filing However, you are not considered to be in transit if you attend a business meeting while in the United States. Free 1040 ez filing This is true even if the meeting is held at the airport. Free 1040 ez filing Crew members. Free 1040 ez filing   Do not count the days you are temporarily present in the United States as a regular crew member of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a U. Free 1040 ez filing S. Free 1040 ez filing possession. Free 1040 ez filing However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. Free 1040 ez filing Medical condition. Free 1040 ez filing   Do not count the days you intended to leave, but could not leave the United States because of a medical condition or problem that arose while you were in the United States. Free 1040 ez filing Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. Free 1040 ez filing For example, you may be able to establish that you intended to leave if your purpose for visiting the United States could be accomplished during a period that is not long enough to qualify you for the substantial presence test. Free 1040 ez filing However, if you need an extended period of time to accomplish the purpose of your visit and that period would qualify you for the substantial presence test, you would not be able to establish an intent to leave the United States before the end of that extended period. Free 1040 ez filing   In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can be determined by analyzing the individual's pattern of behavior before he or she was judged mentally incompetent. Free 1040 ez filing   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. Free 1040 ez filing See Form 8843 , later. Free 1040 ez filing   You cannot exclude any days of presence in the United States under the following circumstances. Free 1040 ez filing You were initially prevented from leaving, were then able to leave, but remained in the United States beyond a reasonable period for making arrangements to leave. Free 1040 ez filing You returned to the United States for treatment of a medical condition that arose during a prior stay. Free 1040 ez filing The condition existed before your arrival in the United States and you were aware of the condition. Free 1040 ez filing It does not matter whether you needed treatment for the condition when you entered the United States. Free 1040 ez filing Exempt individual. Free 1040 ez filing   Do not count days for which you are an exempt individual. Free 1040 ez filing The term “exempt individual” does not refer to someone exempt from U. Free 1040 ez filing S. Free 1040 ez filing tax, but to anyone in the following categories. Free 1040 ez filing An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. Free 1040 ez filing A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa. Free 1040 ez filing A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa. Free 1040 ez filing A professional athlete temporarily in the United States to compete in a charitable sports event. Free 1040 ez filing   The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next. Free 1040 ez filing Foreign government-related individuals. Free 1040 ez filing   A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States: As a full-time employee of an international organization, By reason of diplomatic status, or By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status. Free 1040 ez filing Note. Free 1040 ez filing You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. Free 1040 ez filing    An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. Free 1040 ez filing An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. Free 1040 ez filing   An individual is considered to have full-time diplomatic or consular status if he or she: Has been accredited by a foreign government that is recognized by the United States, Intends to engage primarily in official activities for that foreign government while in the United States, and Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status. Free 1040 ez filing Note. Free 1040 ez filing If you are present in the United States under an “A” or “G” visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). Free 1040 ez filing None of your days count for purposes of the substantial presence test. Free 1040 ez filing   Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and dependent on the exempt individual's visa classification. Free 1040 ez filing Unmarried children are included only if they: Are under 21 years of age, Reside regularly in the exempt individual's household, and Are not members of another household. Free 1040 ez filing Teachers and trainees. Free 1040 ez filing   A teacher or trainee is an individual, other than a student, who is temporarily in the United States under a “J” or “Q” visa and substantially complies with the requirements of that visa. Free 1040 ez filing You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. Free 1040 ez filing S. Free 1040 ez filing immigration laws and could result in the loss of your visa status. Free 1040 ez filing   Also included are immediate family members of exempt teachers and trainees. Free 1040 ez filing See the definition of immediate family, earlier, under Foreign government-related individuals . Free 1040 ez filing   You will not be an exempt individual as a teacher or trainee in 2013 if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years. Free 1040 ez filing However, you will be an exempt individual if all of the following conditions are met. Free 1040 ez filing You were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years, A foreign employer paid all of your compensation during 2013, and A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee. Free 1040 ez filing A foreign employer includes an office or place of business of an American entity in a foreign country or a U. Free 1040 ez filing S. Free 1040 ez filing possession. Free 1040 ez filing   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. Free 1040 ez filing See Form 8843 , later. Free 1040 ez filing Example. Free 1040 ez filing Carla was temporarily in the United States during the year as a teacher on a “J” visa. Free 1040 ez filing Her compensation for the year was paid by a foreign employer. Free 1040 ez filing Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. Free 1040 ez filing She will not be considered an exempt individual for the current year because she was exempt as a teacher for at least 2 of the past 6 years. Free 1040 ez filing If her compensation for the past 2 years had been paid by a foreign employer, she would be an exempt individual for the current year. Free 1040 ez filing Students. Free 1040 ez filing   A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and who substantially complies with the requirements of that visa. Free 1040 ez filing You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. Free 1040 ez filing S. Free 1040 ez filing immigration laws and could result in the loss of your visa status. Free 1040 ez filing   Also included are immediate family members of exempt students. Free 1040 ez filing See the definition of immediate family, earlier, under Foreign government-related individuals . Free 1040 ez filing   You will not be an exempt individual as a student in 2013 if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you meet both of the following requirements. Free 1040 ez filing You establish that you do not intend to reside permanently in the United States. Free 1040 ez filing You have substantially complied with the requirements of your visa. Free 1040 ez filing The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited to, the following. Free 1040 ez filing Whether you have maintained a closer connection to a foreign country (discussed later). Free 1040 ez filing Whether you have taken affirmative steps to change your status from nonimmigrant to lawful permanent resident as discussed later under Closer Connection to a Foreign Country . Free 1040 ez filing   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. Free 1040 ez filing See Form 8843 , later. Free 1040 ez filing Professional athletes. Free 1040 ez filing   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. Free 1040 ez filing A charitable sports event is one that meets the following conditions. Free 1040 ez filing The main purpose is to benefit a qualified charitable organization. Free 1040 ez filing The entire net proceeds go to charity. Free 1040 ez filing Volunteers perform substantially all the work. Free 1040 ez filing   In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in a sports event. Free 1040 ez filing You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. Free 1040 ez filing   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. Free 1040 ez filing See Form 8843 , next. Free 1040 ez filing Form 8843. Free 1040 ez filing   If you exclude days of presence in the United States because you fall into any of the following categories, you must file a fully completed Form 8843. Free 1040 ez filing You were unable to leave the United States as planned because of a medical condition or problem. Free 1040 ez filing You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. Free 1040 ez filing You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. Free 1040 ez filing You were a professional athlete competing in a charitable sports event. Free 1040 ez filing Attach Form 8843 to your 2013 income tax return. Free 1040 ez filing If you do not have to file a return, send Form 8843 to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. Free 1040 ez filing The due date for filing is discussed in chapter 7. Free 1040 ez filing If you do not timely file Form 8843, you cannot exclude the days you were present in the United States as a professional athlete or because of a medical condition that arose while you were in the United States. Free 1040 ez filing This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. Free 1040 ez filing Closer Connection to a Foreign Country Even if you meet the substantial presence test, you can be treated as a nonresident alien if you: Are present in the United States for less than 183 days during the year, Maintain a tax home in a foreign country during the year, and Have a closer connection during the year to one foreign country in which you have a tax home than to the United States (unless you have a closer connection to two foreign countries, discussed next). Free 1040 ez filing Closer connection to two foreign countries. Free 1040 ez filing   You can demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of the following conditions. Free 1040 ez filing You maintained a tax home beginning on the first day of the year in one foreign country. Free 1040 ez filing You changed your tax home during the year to a second foreign country. Free 1040 ez filing You continued to maintain your tax home in the second foreign country for the rest of the year. Free 1040 ez filing You had a closer connection to each foreign country than to the United States for the period during which you maintained a tax home in that foreign country. Free 1040 ez filing You are subject to tax as a resident under the tax laws of either foreign country for the entire year or subject to tax as a resident in both foreign countries for the period during which you maintained a tax home in each foreign country. Free 1040 ez filing Tax home. Free 1040 ez filing   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Free 1040 ez filing Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. Free 1040 ez filing If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. Free 1040 ez filing If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Free 1040 ez filing   For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country to which you are claiming to have a closer connection. Free 1040 ez filing Foreign country. Free 1040 ez filing   In determining whether you have a closer connection to a foreign country, the term “foreign country” means: Any territory under the sovereignty of the United Nations or a government other than that of the United States, The territorial waters of the foreign country (determined under U. Free 1040 ez filing S. Free 1040 ez filing law), The seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and Possessions and territories of the United States. Free 1040 ez filing Establishing a closer connection. Free 1040 ez filing   You will be considered to have a closer connection to a foreign country than the United States if you or the IRS establishes that you have maintained more significant contacts with the foreign country than with the United States. Free 1040 ez filing In determining whether you have maintained more significant contacts with the foreign country than with the United States, the facts and circumstances to be considered include, but are not limited to, the following. Free 1040 ez filing The country of residence you designate on forms and documents. Free 1040 ez filing The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. Free 1040 ez filing The location of: Your permanent home, Your family, Your personal belongings, such as cars, furniture, clothing, and jewelry, Your current social, political, cultural, professional, or religious affiliations, Your business activities (other than those that constitute your tax home), The jurisdiction in which you hold a driver's license, The jurisdiction in which you vote, and Charitable organizations to which you contribute. Free 1040 ez filing It does not matter whether your permanent home is a house, an apartment, or a furnished room. Free 1040 ez filing It also does not matter whether you rent or own it. Free 1040 ez filing It is important, however, that your home be available at all times, continuously, and not solely for short stays. Free 1040 ez filing When you cannot have a closer connection. Free 1040 ez filing   You cannot claim you have a closer connection to a foreign country if either of the following applies: You personally applied, or took other steps during the year, to change your status to that of a permanent resident, or You had an application pending for adjustment of status during the current year. Free 1040 ez filing Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. Free 1040 ez filing Form I-508, Waiver of Rights, Privileges, Exemptions and Immunities Form I-485, Application to Register Permanent Residence or Adjust Status Form I-130, Petition for Alien Relative, on your behalf Form I-140, Immigrant Petition for Alien Worker, on your behalf Form ETA-750, Application for Alien Employment Certification, on your behalf Form DS-230, Application for Immigrant Visa and Alien Registration Form 8840. Free 1040 ez filing   You must attach a fully completed Form 8840 to your income tax return to claim you have a closer connection to a foreign country or countries. Free 1040 ez filing   If you do not have to file a return, send the form to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. Free 1040 ez filing The due date for filing is discussed later in chapter 7. Free 1040 ez filing   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. Free 1040 ez filing This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. Free 1040 ez filing Effect of Tax Treaties The rules given here to determine if you are a U. Free 1040 ez filing S. Free 1040 ez filing resident do not override tax treaty definitions of residency. Free 1040 ez filing If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. Free 1040 ez filing A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Free 1040 ez filing The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). Free 1040 ez filing If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U. Free 1040 ez filing S. Free 1040 ez filing income tax. Free 1040 ez filing For purposes other than figuring your tax, you will be treated as a U. Free 1040 ez filing S. Free 1040 ez filing resident. Free 1040 ez filing For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . Free 1040 ez filing Information to be reported. Free 1040 ez filing   If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. Free 1040 ez filing You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. Free 1040 ez filing You may also have to attach Form 8938 (discussed in chapter 7). Free 1040 ez filing See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. Free 1040 ez filing Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. Free 1040 ez filing This usually occurs in the year you arrive in or depart from the United States. Free 1040 ez filing Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. Free 1040 ez filing First Year of Residency If you are a U. Free 1040 ez filing S. Free 1040 ez filing resident for the calendar year, but you were not a U. Free 1040 ez filing S. Free 1040 ez filing resident at any time during the preceding calendar year, you are a U. Free 1040 ez filing S. Free 1040 ez filing resident only for the part of the calendar year that begins on the residency starting date. Free 1040 ez filing You are a nonresident alien for the part of the year before that date. Free 1040 ez filing Residency starting date under substantial presence test. Free 1040 ez filing   If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year. Free 1040 ez filing However, you do not have to count up to 10 days of actual presence in the United States if on those days you establish that: You had a closer connection to a foreign country than to the United States, and Your tax home was in that foreign country. Free 1040 ez filing See Closer Connection to a Foreign Country , earlier. Free 1040 ez filing   In determining whether you can exclude up to 10 days, the following rules apply. Free 1040 ez filing You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. Free 1040 ez filing You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. Free 1040 ez filing Although you can exclude up to 10 days of presence in determining your residency starting date, you must include those days when determining whether you meet the substantial presence test. Free 1040 ez filing Example. Free 1040 ez filing Ivan Ivanovich is a citizen of Russia. Free 1040 ez filing He came to the United States for the first time on January 6, 2013, to attend a business meeting and returned to Russia on January 10, 2013. Free 1040 ez filing His tax home remained in Russia. Free 1040 ez filing On March 1, 2013, he moved to the United States and resided here for the rest of the year. Free 1040 ez filing Ivan is able to establish a closer connection to Russia for the period January 6–10. Free 1040 ez filing Thus, his residency starting date is March 1. Free 1040 ez filing Statement required to exclude up to 10 days of presence. Free 1040 ez filing   You must file a statement with the IRS if you are excluding up to 10 days of presence in the United States for purposes of your residency starting date. Free 1040 ez filing You must sign and date this statement and include a declaration that it is made under penalties of perjury. Free 1040 ez filing The statement must contain the following information (as applicable). Free 1040 ez filing Your name, address, U. Free 1040 ez filing S. Free 1040 ez filing taxpayer identification number (if any), and U. Free 1040 ez filing S. Free 1040 ez filing visa number (if any). Free 1040 ez filing Your passport number and the name of the country that issued your passport. Free 1040 ez filing The tax year for which the statement applies. Free 1040 ez filing The first day that you were present in the United States during the year. Free 1040 ez filing The dates of the days you are excluding in figuring your first day of residency. Free 1040 ez filing Sufficient facts to establish that you have maintained your tax home in and a closer connection to a foreign country during the period you are excluding. Free 1040 ez filing   Attach the required statement to your income tax return. Free 1040 ez filing If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. Free 1040 ez filing The due date for filing is discussed in chapter 7. Free 1040 ez filing   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. Free 1040 ez filing Therefore, your first day of residency will be the first day you are present in the United States. Free 1040 ez filing This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. Free 1040 ez filing Residency starting date under green card test. Free 1040 ez filing   If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident. Free 1040 ez filing   If you meet both the substantial presence test and the green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident. Free 1040 ez filing Residency during the preceding year. Free 1040 ez filing   If you were a U. Free 1040 ez filing S. Free 1040 ez filing resident during any part of the preceding calendar year and you are a U. Free 1040 ez filing S. Free 1040 ez filing resident for any part of the current year, you will be considered a U. Free 1040 ez filing S. Free 1040 ez filing resident at the beginning of the current year. Free 1040 ez filing This applies whether you are a resident under the substantial presence test or green card test. Free 1040 ez filing Example. Free 1040 ez filing Robert Bach is a citizen of Switzerland. Free 1040 ez filing He came to the United States as a U. Free 1040 ez filing S. Free 1040 ez filing resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. Free 1040 ez filing Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. Free 1040 ez filing In calendar year 2013, Robert's U. Free 1040 ez filing S. Free 1040 ez filing residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. Free 1040 ez filing First-Year Choice If you do not meet either the green card test or the substantial presence test for 2012 or 2013 and you did not choose to be treated as a resident for part of 2012, but you meet the substantial presence test for 2014, you can choose to be treated as a U. Free 1040 ez filing S. Free 1040 ez filing resident for part of 2013. Free 1040 ez filing To make this choice, you must: Be present in the United States for at least 31 days in a row in 2013, and Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2013. Free 1040 ez filing For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States. Free 1040 ez filing When counting the days of presence in (1) and (2) above, do not count the days you were in the United States under any of the exceptions discussed earlier under Days of Presence in the United States. Free 1040 ez filing If you make the first-year choice, your residency starting date for 2013 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. Free 1040 ez filing You are treated as a U. Free 1040 ez filing S. Free 1040 ez filing resident for the rest of the year. Free 1040 ez filing If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. Free 1040 ez filing If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period. Free 1040 ez filing Note. Free 1040 ez filing You do not have to be married to make this choice. Free 1040 ez filing Example 1. Free 1040 ez filing Juan DaSilva is a citizen of the Philippines. Free 1040 ez filing He came to the United States for the first time on November 1, 2013, and was here on 31 consecutive days (from November 1 through December 1, 2013). Free 1040 ez filing Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. Free 1040 ez filing He stayed in the United States for the rest of the year. Free 1040 ez filing During 2014, Juan was a resident of the United States under the substantial presence test. Free 1040 ez filing Juan can make the first-year choice for 2013 because he was in the United States in 2013 for a period of 31 days in a row (November 1 through December 1) and for at least 75% of the days following (and including) the first day of his 31-day period (46 total days of presence in the United States divided by 61 days in the period from November 1 through December 31 equals 75. Free 1040 ez filing 4%). Free 1040 ez filing If Juan makes the first-year choice, his residency starting date will be November 1, 2013. Free 1040 ez filing Example 2. Free 1040 ez filing The facts are the same as in Example 1, except that Juan was also absent from the United States on December 24, 25, 29, 30, and 31. Free 1040 ez filing He can make the first-year choice for 2013 because up to 5 days of absence are considered days of presence for purposes of the 75% requirement. Free 1040 ez filing Statement required to make the first-year choice for 2013. Free 1040 ez filing   You must attach a statement to Form 1040 to make the first-year choice for 2013. Free 1040 ez filing The statement must contain your name and address and specify the following. Free 1040 ez filing That you are making the first-year choice for 2013. Free 1040 ez filing That you were not a resident in 2012. Free 1040 ez filing That you are a resident under the substantial presence test in 2014. Free 1040 ez filing The number of days of presence in the United States during 2014. Free 1040 ez filing The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. Free 1040 ez filing The date or dates of absence from the United States during 2013 that you are treating as days of presence. Free 1040 ez filing You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. Free 1040 ez filing If you have not met the test for 2014 as of April 15, 2014, you can request an extension of time for filing your 2013 Form 1040 until a reasonable period after you have met that test. Free 1040 ez filing To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. Free 1040 ez filing S. Free 1040 ez filing Individual Income Tax Return. Free 1040 ez filing You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. Free 1040 ez filing You should pay with this extension the amount of tax you expect to owe for 2013 figured as if you were a nonresident alien the entire year. Free 1040 ez filing You can use Form 1040NR or Form 1040NR-EZ to figure the tax. Free 1040 ez filing Enter the tax on Form 4868. Free 1040 ez filing If you do not pay the tax due, you will be charged interest on any tax not paid by the regular due date of your return, and you may be charged a penalty on the late payment. Free 1040 ez filing   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. Free 1040 ez filing   If you do not follow the procedures discussed here for making the first-year choice, you will be treated as a nonresident alien for all of 2013. Free 1040 ez filing However, this does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures. Free 1040 ez filing Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. Free 1040 ez filing S. Free 1040 ez filing resident for the entire year if all of the following apply. Free 1040 ez filing You were a nonresident alien at the beginning of the year. Free 1040 ez filing You are a resident alien or U. Free 1040 ez filing S. Free 1040 ez filing citizen at the end of the year. Free 1040 ez filing You are married to a U. Free 1040 ez filing S. Free 1040 ez filing citizen or resident alien at the end of the year. Free 1040 ez filing Your spouse joins you in making the choice. Free 1040 ez filing This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. Free 1040 ez filing Note. Free 1040 ez filing If you are single at the end of the year, you cannot make this choice. Free 1040 ez filing If you make this choice, the following rules apply. Free 1040 ez filing You and your spouse are treated as U. Free 1040 ez filing S. Free 1040 ez filing residents for the entire year for income tax purposes. Free 1040 ez filing You and your spouse are taxed on worldwide income. Free 1040 ez filing You and your spouse must file a joint return for the year of the choice. Free 1040 ez filing Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. Free 1040 ez filing The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. Free 1040 ez filing Note. Free 1040 ez filing A similar choice is available if, at the end of the tax year, one spouse is a nonresident alien and the other spouse is a U. Free 1040 ez filing S. Free 1040 ez filing citizen or resident. Free 1040 ez filing See Nonresident Spouse Treated as a Resident , later. Free 1040 ez filing If you previously made that choice and it is still in effect, you do not need to make the choice explained here. Free 1040 ez filing Making the choice. Free 1040 ez filing   You should attach a statement signed by both spouses to your joint return for the year of the choice. Free 1040 ez filing The statement must contain the following information. Free 1040 ez filing A declaration that you both qualify to make the choice and that you choose to be treated as U. Free 1040 ez filing S. Free 1040 ez filing residents for the entire tax year. Free 1040 ez filing The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. Free 1040 ez filing (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. Free 1040 ez filing )   You generally make this choice when you file your joint return. Free 1040 ez filing However, you also can make the choice by filing Form 1040X, Amended U. Free 1040 ez filing S. Free 1040 ez filing Individual Income Tax Return. Free 1040 ez filing Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. Free 1040 ez filing If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. Free 1040 ez filing   You generally must file the amended joint return within 3 years from the date you filed your original U. Free 1040 ez filing S. Free 1040 ez filing income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Free 1040 ez filing Last Year of Residency If you were a U. Free 1040 ez filing S. Free 1040 ez filing resident in 2013 but are not a U. Free 1040 ez filing S. Free 1040 ez filing resident during any part of 2014, you cease to be a U. Free 1040 ez filing S. Free 1040 ez filing resident on your residency termination date. Free 1040 ez filing Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. Free 1040 ez filing Earlier residency termination date. Free 1040 ez filing   You may qualify for a residency termination date that is earlier than December 31. Free 1040 ez filing This date is: The last day in 2013 that you are physically present in the United States, if you met the substantial presence test, The first day in 2013 that you are no longer a lawful permanent resident of the United States, if you met the green card test, or The later of (1) or (2), if you met both tests. Free 1040 ez filing You can use this date only if, for the remainder of 2013, your tax home was in a foreign country and you had a closer connection to that foreign country. Free 1040 ez filing See Closer Connection to a Foreign Country , earlier. Free 1040 ez filing    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. Free 1040 ez filing See Expatriation Tax in chapter 4. Free 1040 ez filing Termination of residency. Free 1040 ez filing   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. Free 1040 ez filing De minimis presence. Free 1040 ez filing   If you are a U. Free 1040 ez filing S. Free 1040 ez filing resident because of the substantial presence test and you qualify to use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United States in determining your residency termination date. Free 1040 ez filing In determining whether you can exclude up to 10 days, the following rules apply. Free 1040 ez filing You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. Free 1040 ez filing You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. Free 1040 ez filing Although you can exclude up to 10 days of presence in determining your residency termination date, you must include those days when determining whether you meet the substantial presence test. Free 1040 ez filing Example. Free 1040 ez filing Lola Bovary is a citizen of Malta. Free 1040 ez filing She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. Free 1040 ez filing On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. Free 1040 ez filing She is able to establish a closer connection to Malta for the period December 12–16. Free 1040 ez filing Lola is not a U. Free 1040 ez filing S. Free 1040 ez filing resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. Free 1040 ez filing Lola is a U. Free 1040 ez filing S. Free 1040 ez filing resident under the substantial presence test for 2013 because she was present in the United States for 183 days (178 days for the period March 1 to August 25 plus 5 days in December). Free 1040 ez filing Lola's residency termination date is August 25, 2013. Free 1040 ez filing Residency during the next year. Free 1040 ez filing   If you are a U. Free 1040 ez filing S. Free 1040 ez filing resident during any part of 2014 and you are a resident during any part of 2013, you will be treated as a resident through the end of 2013. Free 1040 ez filing This applies whether you have a closer connection to a foreign country than the United States during 2013, and whether you are a resident under the substantial presence test or green card test. Free 1040 ez filing Statement required to establish your residency termination date. Free 1040 ez filing   You must file a statement with the IRS to establish your residency termination date. Free 1040 ez filing You must sign and date this statement and include a declaration that it is made under penalties of perjury. Free 1040 ez filing The statement must contain the following information (as applicable). Free 1040 ez filing Your name, address, U. Free 1040 ez filing S. Free 1040 ez filing taxpayer identification number (if any), and U. Free 1040 ez filing S. Free 1040 ez filing visa number (if any). Free 1040 ez filing Your passport number and the name of the country that issued your passport. Free 1040 ez filing The tax year for which the statement applies. Free 1040 ez filing The last day that you were present in the United States during the year. Free 1040 ez filing Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year. Free 1040 ez filing The date that your status as a lawful permanent resident was abandoned or rescinded. Free 1040 ez filing Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. Free 1040 ez filing If you can exclude days under the de minimis presence rule, discussed earlier, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in and that you have a closer connection to a foreign country during the period you are excluding. Free 1040 ez filing   Attach the required statement to your income tax return. Free 1040 ez filing If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. Free 1040 ez filing The due date for filing is discussed in chapter 7. Free 1040 ez filing   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. Free 1040 ez filing This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. Free 1040 ez filing Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Free 1040 ez filing S. Free 1040 ez filing citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. Free 1040 ez filing S. Free 1040 ez filing resident. Free 1040 ez filing This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. Free 1040 ez filing If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Free 1040 ez filing Neither you nor your spouse can claim under any tax treaty not to be a U. Free 1040 ez filing S. Free 1040 ez filing resident. Free 1040 ez filing You are both taxed on worldwide income. Free 1040 ez filing You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. Free 1040 ez filing If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. Free 1040 ez filing Example. Free 1040 ez filing Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. Free 1040 ez filing In June, Bob became a resident alien and remained a resident for the rest of the year. Free 1040 ez filing Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. Free 1040 ez filing Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. Free 1040 ez filing How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Free 1040 ez filing It should contain the following information. Free 1040 ez filing A declaration that one spouse was a nonresident alien and the other spouse a U. Free 1040 ez filing S. Free 1040 ez filing citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. Free 1040 ez filing S. Free 1040 ez filing residents for the entire tax year. Free 1040 ez filing The name, address, and identification number of each spouse. Free 1040 ez filing (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Free 1040 ez filing ) Amended return. Free 1040 ez filing   You generally make this choice when you file your joint return. Free 1040 ez filing However, you can also make the choice by filing a joint amended return on Form 1040X. Free 1040 ez filing Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. Free 1040 ez filing If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. Free 1040 ez filing   You generally must file the amended joint return within 3 years from the date you filed your original U. Free 1040 ez filing S. Free 1040 ez filing income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Free 1040 ez filing Suspending the Choice The choice to be treated as a resident alien is suspended for any tax year (after the tax year you made the choice) if neither spouse is a U. Free 1040 ez filing S. Free 1040 ez filing citizen or resident alien at any time during the tax year. Free 1040 ez filing This means each spouse must file a separate return as a nonresident alien for that year if either meets the filing requirements for nonresident aliens discussed in chapter 7. Free 1040 ez filing Example. Free 1040 ez filing Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Free 1040 ez filing They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. Free 1040 ez filing On January 10, 2012, Dick became a nonresident alien. Free 1040 ez filing Judy had remained a nonresident alien throughout the period. Free 1040 ez filing Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. Free 1040 ez filing However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. Free 1040 ez filing If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. Free 1040 ez filing If Dick becomes a resident alien again in 2014, their choice is no longer suspended. Free 1040 ez filing Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier under Suspending the Choice ) or ended in one of the following ways. Free 1040 ez filing If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. Free 1040 ez filing Revocation. Free 1040 ez filing Either spouse can revoke the choice for any tax year, provided he or she makes the revocation by the due date for filing the tax return for that tax year. Free 1040 ez filing The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Free 1040 ez filing The statement must include the name, address, and identification number of each spouse. Free 1040 ez filing (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. Free 1040 ez filing ) The statement also must include a list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Free 1040 ez filing File the statement as follows. Free 1040 ez filing If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. Free 1040 ez filing If the spouse revoking the choice does not have to file a return, but does file a return (for example, to obtain a refund), attach the statement to the return. Free 1040 ez filing If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where you filed the last joint return. Free 1040 ez filing Death. Free 1040 ez filing The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. Free 1040 ez filing However, if the surviving spouse is a U. Free 1040 ez filing S. Free 1040 ez filing citizen or resident and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Free 1040 ez filing If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Free 1040 ez filing Legal separation. Free 1040 ez filing A legal separation under a decree of divorce or separate maintenance ends the choice as of the beginning of the tax year in which the legal separation occurs. Free 1040 ez filing Inadequate records. Free 1040 ez filing The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Free 1040 ez filing Aliens From American Samoa or Puerto Rico If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. Free 1040 ez filing For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. Free 1040 ez filing If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien. Free 1040 ez filing Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. Free 1040 ez filing Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP54Q Notice

Your tax return shows a different name and/or ID number from the information we have on file for you or from the information from the Social Security Administration (SSA).
We previously sent you a notice asking you to provide us some updated information. We still haven’t received a response from you.


What you need to do

  • Review your identifying information shown on this notice and compare it to your most recent social security card or taxpayer ID card.
  • Complete the CP54 response form to explain the discrepancies.
  • Include copies of documents to substantiate your name and identifying number.

You may want to

  • Contact the SSA to update your records if any of the following occurred:
    • you recently married and are using your spouse’s last name and have not already contacted SSA,
    • you legally changed your name without contacting SSA, or
    • your social security number (SSN) and/or name are different than on your social security card.

 


Answers to Common Questions

Q. I sent you my information. When will I get my refund?

A. Once we receive your response form and verify the information you provided, you should receive your refund in 4 to 6 weeks. If you don’t hear from us after 4 to 6 weeks, call our “Where’s My Refund?” toll free line at 1-800-829-1954 to check on the status of your refund.


Tips for next year

Make sure you file using your name and taxpayer ID number as they appear on your social security card or taxpayer ID card.

Page Last Reviewed or Updated: 23-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free 1040 Ez Filing

Free 1040 ez filing 12. Free 1040 ez filing   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Free 1040 ez filing Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. Free 1040 ez filing  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. Free 1040 ez filing 5 cents per mile. Free 1040 ez filing For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. Free 1040 ez filing Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Free 1040 ez filing To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. Free 1040 ez filing What is the tax benefit of taking a business deduction for work-related education. Free 1040 ez filing   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Free 1040 ez filing Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Free 1040 ez filing An itemized deduction reduces the amount of your income subject to tax. Free 1040 ez filing   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Free 1040 ez filing This reduces the amount of your income subject to both income tax and self-employment tax. Free 1040 ez filing   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. Free 1040 ez filing You may qualify for these other benefits even if you do not meet the requirements listed above. Free 1040 ez filing   Also, your work-related education expenses may qualify you to claim more than one tax benefit. Free 1040 ez filing Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Free 1040 ez filing Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Free 1040 ez filing This is education that meets at least one of the following two tests. Free 1040 ez filing The education is required by your employer or the law to keep your present salary, status, or job. Free 1040 ez filing The required education must serve a bona fide business purpose of your employer. Free 1040 ez filing The education maintains or improves skills needed in your present work. Free 1040 ez filing However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Free 1040 ez filing You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Free 1040 ez filing Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. Free 1040 ez filing Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Free 1040 ez filing This additional education is qualifying work-related education if all three of the following requirements are met. Free 1040 ez filing It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Free 1040 ez filing When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Free 1040 ez filing See Education To Maintain or Improve Skills , later. Free 1040 ez filing Example. Free 1040 ez filing You are a teacher who has satisfied the minimum requirements for teaching. Free 1040 ez filing Your employer requires you to take an additional college course each year to keep your teaching job. Free 1040 ez filing If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Free 1040 ez filing This image is too large to be displayed in the current screen. Free 1040 ez filing Please click the link to view the image. Free 1040 ez filing Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Free 1040 ez filing This could include refresher courses, courses on current developments, and academic or vocational courses. Free 1040 ez filing Example. Free 1040 ez filing You repair televisions, radios, and stereo systems for XYZ Store. Free 1040 ez filing To keep up with the latest changes, you take special courses in radio and stereo service. Free 1040 ez filing These courses maintain and improve skills required in your work. Free 1040 ez filing Maintaining skills vs. Free 1040 ez filing qualifying for new job. Free 1040 ez filing   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Free 1040 ez filing Education during temporary absence. Free 1040 ez filing   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Free 1040 ez filing Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Free 1040 ez filing Example. Free 1040 ez filing You quit your biology research job to become a full-time biology graduate student for 1 year. Free 1040 ez filing If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Free 1040 ez filing Education during indefinite absence. Free 1040 ez filing   If you stop work for more than a year, your absence from your job is considered indefinite. Free 1040 ez filing Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Free 1040 ez filing Therefore, it is not qualifying work-related education. Free 1040 ez filing Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Free 1040 ez filing The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Free 1040 ez filing Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Free 1040 ez filing This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Free 1040 ez filing You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Free 1040 ez filing Example 1. Free 1040 ez filing You are a full-time engineering student. Free 1040 ez filing Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Free 1040 ez filing Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Free 1040 ez filing The education is not qualifying work-related education. Free 1040 ez filing Example 2. Free 1040 ez filing You are an accountant and you have met the minimum educational requirements of your employer. Free 1040 ez filing Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Free 1040 ez filing These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Free 1040 ez filing Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Free 1040 ez filing The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Free 1040 ez filing If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Free 1040 ez filing The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Free 1040 ez filing You generally will be considered a faculty member when one or more of the following occurs. Free 1040 ez filing You have tenure. Free 1040 ez filing Your years of service count toward obtaining tenure. Free 1040 ez filing You have a vote in faculty decisions. Free 1040 ez filing Your school makes contributions for you to a retirement plan other than social security or a similar program. Free 1040 ez filing Example 1. Free 1040 ez filing The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Free 1040 ez filing In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Free 1040 ez filing If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Free 1040 ez filing However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Free 1040 ez filing Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Free 1040 ez filing If you have all the required education except the fifth year, you have met the minimum educational requirements. Free 1040 ez filing The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Free 1040 ez filing Example 2. Free 1040 ez filing Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Free 1040 ez filing The additional four education courses can be qualifying work-related education. Free 1040 ez filing Although you do not have all the required courses, you have already met the minimum educational requirements. Free 1040 ez filing Example 3. Free 1040 ez filing Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Free 1040 ez filing The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Free 1040 ez filing They are needed to meet the minimum educational requirements for employment as a teacher. Free 1040 ez filing Example 4. Free 1040 ez filing You have a bachelor's degree and you work as a temporary instructor at a university. Free 1040 ez filing At the same time, you take graduate courses toward an advanced degree. Free 1040 ez filing The rules of the university state that you can become a faculty member only if you get a graduate degree. Free 1040 ez filing Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Free 1040 ez filing You have not met the minimum educational requirements to qualify you as a faculty member. Free 1040 ez filing The graduate courses are not qualifying work-related education. Free 1040 ez filing Certification in a new state. Free 1040 ez filing   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Free 1040 ez filing This is true even if you must get additional education to be certified in another state. Free 1040 ez filing Any additional education you need is qualifying work-related education. Free 1040 ez filing You have already met the minimum requirements for teaching. Free 1040 ez filing Teaching in another state is not a new trade or business. Free 1040 ez filing Example. Free 1040 ez filing You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Free 1040 ez filing You move to State B and are promptly hired as a teacher. Free 1040 ez filing You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Free 1040 ez filing These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Free 1040 ez filing Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Free 1040 ez filing This is true even if you do not plan to enter that trade or business. Free 1040 ez filing If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Free 1040 ez filing Example 1. Free 1040 ez filing You are an accountant. Free 1040 ez filing Your employer requires you to get a law degree at your own expense. Free 1040 ez filing You register at a law school for the regular curriculum that leads to a law degree. Free 1040 ez filing Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Free 1040 ez filing Example 2. Free 1040 ez filing You are a general practitioner of medicine. Free 1040 ez filing You take a 2-week course to review developments in several specialized fields of medicine. Free 1040 ez filing The course does not qualify you for a new profession. Free 1040 ez filing It is qualifying work- related education because it maintains or improves skills required in your present profession. Free 1040 ez filing Example 3. Free 1040 ez filing While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Free 1040 ez filing The program will lead to qualifying you to practice psychoanalysis. Free 1040 ez filing The psychoanalytic training does not qualify you for a new profession. Free 1040 ez filing It is qualifying work-related education because it maintains or improves skills required in your present profession. Free 1040 ez filing Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Free 1040 ez filing They are part of a program of study that can qualify you for a new profession. Free 1040 ez filing Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Free 1040 ez filing A change in duties in any of the following ways is not considered a change to a new business. Free 1040 ez filing Elementary school teacher to secondary school teacher. Free 1040 ez filing Teacher of one subject, such as biology, to teacher of another subject, such as art. Free 1040 ez filing Classroom teacher to guidance counselor. Free 1040 ez filing Classroom teacher to school administrator. Free 1040 ez filing What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. Free 1040 ez filing If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Free 1040 ez filing You cannot deduct expenses related to tax-exempt and excluded income. Free 1040 ez filing Deductible expenses. Free 1040 ez filing   The following education expenses can be deducted. Free 1040 ez filing Tuition, books, supplies, lab fees, and similar items. Free 1040 ez filing Certain transportation and travel costs. Free 1040 ez filing Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Free 1040 ez filing Nondeductible expenses. Free 1040 ez filing   You cannot deduct personal or capital expenses. Free 1040 ez filing For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Free 1040 ez filing This amount is a personal expense. Free 1040 ez filing Unclaimed reimbursement. Free 1040 ez filing   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Free 1040 ez filing Example. Free 1040 ez filing Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Free 1040 ez filing You do not file a voucher and you do not get reimbursed. Free 1040 ez filing Because you did not file a voucher, you cannot deduct the expenses on your tax return. Free 1040 ez filing Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Free 1040 ez filing If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Free 1040 ez filing Temporary basis. Free 1040 ez filing   You go to school on a temporary basis if either of the following situations applies to you. Free 1040 ez filing Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Free 1040 ez filing Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Free 1040 ez filing Your attendance is temporary up to the date you determine it will last more than 1 year. Free 1040 ez filing If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. Free 1040 ez filing Attendance not on a temporary basis. Free 1040 ez filing   You do not go to school on a temporary basis if either of the following situations apply to you. Free 1040 ez filing Your attendance at school is realistically expected to last more than 1 year. Free 1040 ez filing It does not matter how long you actually attend. Free 1040 ez filing Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Free 1040 ez filing Your attendance is not temporary after the date you determine it will last more than 1 year. Free 1040 ez filing Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Free 1040 ez filing This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Free 1040 ez filing Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Free 1040 ez filing Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Free 1040 ez filing Example 1. Free 1040 ez filing You regularly work in a nearby town, and go directly from work to home. Free 1040 ez filing You also attend school every work night for 3 months to take a course that improves your job skills. Free 1040 ez filing Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Free 1040 ez filing This is true regardless of the distance traveled. Free 1040 ez filing Example 2. Free 1040 ez filing Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Free 1040 ez filing You can deduct your transportation expenses from your regular work site to school and then home. Free 1040 ez filing Example 3. Free 1040 ez filing Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Free 1040 ez filing Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Free 1040 ez filing Example 4. Free 1040 ez filing Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Free 1040 ez filing Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Free 1040 ez filing If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Free 1040 ez filing If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Free 1040 ez filing Using your car. Free 1040 ez filing    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Free 1040 ez filing The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. Free 1040 ez filing 5 cents per mile. Free 1040 ez filing Whichever method you use, you can also deduct parking fees and tolls. Free 1040 ez filing See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. Free 1040 ez filing Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Free 1040 ez filing Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Free 1040 ez filing For more information, see chapter 1 of Publication 463. Free 1040 ez filing You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. Free 1040 ez filing Mainly personal travel. Free 1040 ez filing   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Free 1040 ez filing You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Free 1040 ez filing   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Free 1040 ez filing An important factor is the comparison of time spent on personal activities with time spent on educational activities. Free 1040 ez filing If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Free 1040 ez filing Example 1. Free 1040 ez filing John works in Newark, New Jersey. Free 1040 ez filing He traveled to Chicago to take a deductible 1-week course at the request of his employer. Free 1040 ez filing His main reason for going to Chicago was to take the course. Free 1040 ez filing While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Free 1040 ez filing Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Free 1040 ez filing He cannot deduct his transportation expenses of going to Pleasantville. Free 1040 ez filing He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Free 1040 ez filing Example 2. Free 1040 ez filing Sue works in Boston. Free 1040 ez filing She went to a university in Michigan to take a course for work. Free 1040 ez filing The course is qualifying work-related education. Free 1040 ez filing She took one course, which is one-fourth of a full course load of study. Free 1040 ez filing She spent the rest of the time on personal activities. Free 1040 ez filing Her reasons for taking the course in Michigan were all personal. Free 1040 ez filing Sue's trip is mainly personal because three-fourths of her time is considered personal time. Free 1040 ez filing She cannot deduct the cost of her round-trip train ticket to Michigan. Free 1040 ez filing She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Free 1040 ez filing Example 3. Free 1040 ez filing Dave works in Nashville and recently traveled to California to take a 2-week seminar. Free 1040 ez filing The seminar is qualifying work-related education. Free 1040 ez filing While there, he spent an extra 8 weeks on personal activities. Free 1040 ez filing The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Free 1040 ez filing Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Free 1040 ez filing He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Free 1040 ez filing Cruises and conventions. Free 1040 ez filing   Certain cruises and conventions offer seminars or courses as part of their itinerary. Free 1040 ez filing Even if the seminars or courses are work related, your deduction for travel may be limited. Free 1040 ez filing This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Free 1040 ez filing   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Free 1040 ez filing 50% limit on meals. Free 1040 ez filing   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Free 1040 ez filing If you were reimbursed for the meals, see How To Treat Reimbursements , later. Free 1040 ez filing   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Free 1040 ez filing Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Free 1040 ez filing Example. Free 1040 ez filing You are a French language teacher. Free 1040 ez filing While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Free 1040 ez filing You chose your itinerary and most of your activities to improve your French language skills. Free 1040 ez filing You cannot deduct your travel expenses as education expenses. Free 1040 ez filing This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Free 1040 ez filing No Double Benefit Allowed You cannot do either of the following. Free 1040 ez filing Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. Free 1040 ez filing Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Free 1040 ez filing See Adjustments to Qualifying Work-Related Education Expenses, next. Free 1040 ez filing Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Free 1040 ez filing You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Free 1040 ez filing Tax-free educational assistance. Free 1040 ez filing   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Free 1040 ez filing Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Free 1040 ez filing Amounts that do not reduce qualifying work-related education expenses. Free 1040 ez filing   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Free 1040 ez filing Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Free 1040 ez filing How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Free 1040 ez filing There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Free 1040 ez filing You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Free 1040 ez filing Note. Free 1040 ez filing The following rules about reimbursement arrangements also apply to expense allowances received from your employer. Free 1040 ez filing Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Free 1040 ez filing Your expenses must have a business connection. Free 1040 ez filing This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. Free 1040 ez filing You must adequately account to your employer for your expenses within a reasonable period of time. Free 1040 ez filing You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. Free 1040 ez filing If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. Free 1040 ez filing If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. Free 1040 ez filing Accountable plan rules not met. Free 1040 ez filing   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. Free 1040 ez filing Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). Free 1040 ez filing Expenses equal reimbursement. Free 1040 ez filing   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. Free 1040 ez filing Because your expenses and reimbursements are equal, you do not have a deduction. Free 1040 ez filing Excess expenses. Free 1040 ez filing   If your expenses are more than your reimbursement, you can deduct your excess expenses. Free 1040 ez filing This is discussed later, under Deducting Business Expenses . Free 1040 ez filing Allocating your reimbursements for meals. Free 1040 ez filing   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. Free 1040 ez filing If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. Free 1040 ez filing Make the allocation as follows. Free 1040 ez filing Divide your meal expenses by your total expenses. Free 1040 ez filing Multiply your total reimbursement by the result from (1). Free 1040 ez filing This is the allocated reimbursement for your meal expenses. Free 1040 ez filing Subtract the amount figured in (2) from your total reimbursement. Free 1040 ez filing The difference is the allocated reimbursement for your other expenses of qualifying work-related education. Free 1040 ez filing Example. Free 1040 ez filing Your employer paid you an expense allowance of $2,000 under an accountable plan. Free 1040 ez filing The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. Free 1040 ez filing There was no indication of how much of the reimbursement was for each type of expense. Free 1040 ez filing Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). Free 1040 ez filing Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. Free 1040 ez filing   1. Free 1040 ez filing $425 meal expenses  $2,500 total expenses = . Free 1040 ez filing 17   2. Free 1040 ez filing $2,000 (reimbursement)×. Free 1040 ez filing 17     =$340 (allocated reimbursement for meal expenses)   3. Free 1040 ez filing $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). Free 1040 ez filing After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). Free 1040 ez filing Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. Free 1040 ez filing You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. Free 1040 ez filing This is discussed later under Deducting Business Expenses . Free 1040 ez filing An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. Free 1040 ez filing Reimbursements for nondeductible expenses. Free 1040 ez filing   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. Free 1040 ez filing You must include them in your income. Free 1040 ez filing For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. Free 1040 ez filing   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. Free 1040 ez filing Deducting Business Expenses Self-employed persons and employees report their business expenses differently. Free 1040 ez filing The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Free 1040 ez filing Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). Free 1040 ez filing If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Free 1040 ez filing See the instructions for the form you file for information on how to complete it. Free 1040 ez filing Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Free 1040 ez filing If either (1) or (2) applies, you can deduct the total qualifying cost. Free 1040 ez filing If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Free 1040 ez filing In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Free 1040 ez filing (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Free 1040 ez filing ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Free 1040 ez filing Form 2106 or 2106-EZ. Free 1040 ez filing   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. Free 1040 ez filing Form not required. Free 1040 ez filing   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. Free 1040 ez filing   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Free 1040 ez filing (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. Free 1040 ez filing ) Using Form 2106-EZ. Free 1040 ez filing   This form is shorter and easier to use than Form 2106. Free 1040 ez filing Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Free 1040 ez filing   If you do not meet both of these requirements, use Form 2106. Free 1040 ez filing Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Free 1040 ez filing Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. Free 1040 ez filing You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Free 1040 ez filing You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . Free 1040 ez filing For more information on qualified performing artists, see chapter 6 of Publication 463. Free 1040 ez filing Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Free 1040 ez filing They are not subject to the 2%-of-adjusted-gross-income limit. Free 1040 ez filing To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Free 1040 ez filing For more information on impairment-related work expenses, see chapter 6 of Publication 463. Free 1040 ez filing Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Free 1040 ez filing Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Free 1040 ez filing If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. Free 1040 ez filing However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. Free 1040 ez filing Examples of records to keep. Free 1040 ez filing   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. Free 1040 ez filing You should keep adequate records or have sufficient evidence that will support your expenses. Free 1040 ez filing Estimates or approximations do not qualify as proof of an expense. Free 1040 ez filing Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. Free 1040 ez filing , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. Free 1040 ez filing Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. Free 1040 ez filing Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. Free 1040 ez filing Complete information about any scholarship or fellowship grants, including amounts you received during the year. Free 1040 ez filing Illustrated Example Victor Jones teaches math at a private high school in North Carolina. Free 1040 ez filing He was selected to attend a 3-week math seminar at a university in California. Free 1040 ez filing The seminar will improve his skills in his current job and is qualifying work-related education. Free 1040 ez filing He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. Free 1040 ez filing Victor will file Form 1040. Free 1040 ez filing His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. Free 1040 ez filing He shows his expenses for the seminar in Part I of the form. Free 1040 ez filing He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. Free 1040 ez filing He enters $400 on line 4 for his tuition and books. Free 1040 ez filing On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. Free 1040 ez filing He multiplies that amount by 50% and enters the result, $263, on line 5. Free 1040 ez filing On line 6, Victor totals the amounts from lines 3 through 5. Free 1040 ez filing He carries the total, $2,313, to Schedule A (Form 1040), line 21. Free 1040 ez filing Since he does not claim any vehicle expenses, Victor leaves Part II blank. Free 1040 ez filing His filled-in form is shown on the next page. Free 1040 ez filing This image is too large to be displayed in the current screen. Free 1040 ez filing Please click the link to view the image. Free 1040 ez filing Form 2106-EZ for V. Free 1040 ez filing Jones Prev  Up  Next   Home   More Online Publications