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Free E File Irs

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Free E File Irs

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

If you're facing foreclosure, get housing counseling and other assistance.


Housing - Avoiding Foreclosure

If you miss your mortgage payments, you may lose your home through foreclosure. Your lender can use foreclosure as a legal means to repossess your home. If you owe more than your property is worth, a deficiency judgment is pursued. Both foreclosures and deficiency judgments have a negative impact on your future credit. You should avoid foreclosure if at all possible.

These steps can help:

  • Do not ignore the letters from your lender. If you're having problems making your payments, call or write to your lender's loss mitigation department immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses, loan documents/ type of mortgage, tax returns, the amount of equity in your home. Without this information, they may not be able to help.
  • Stay in your home for now. You may not qualify for assistance if you abandon your property.For example, the Hope for Homeowners program only offers 30-year fixed-rate mortgages to owner occupiers.
  • Contact a HUD-approved housing counseling agency. Call 1-800-569-4287 or TDD 1-800-877-8339 for the housing counseling agency nearest you. These agencies are valuable resources.

HUD counselors frequently have information on services and programs offered by government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

Mortgage and Foreclosure Scams

Most mortgage professionals are trustworthy and provide a valuable service by allowing families to own a home without saving enough money to buy it outright. But dishonest or "predatory" lenders do exist and engage in lending practices that increase the chances that a borrower will lose a home to foreclosure. Some abusive practices include:

  • Lease-back or rent-to-buy scams: You are asked to transfer the title to your home "temporarily" to the scam artist who promises to obtain better financing for your mortgage and allow you to stay in your home as a renter with the option to purchase the home back. However, if you do not comply with the terms of the rent-to-buy agreement, you will lose your money and be evicted like any other tenant.
  • Fake "government" modification programs: These scams claim to be affiliated with the government or require that you pay high fees in order to benefit from government modification programs. Remember that you do not have to pay any fees to participate in government-approved programs. Some frauds may even use words like "federal" or "government-approved" or acquire website names that make consumers think they are associated with the government.
  • Refinance fraud: The scam artist offers to be an intermediary between you and your mortgage lender to negotiate a loan modification. The scam artist may even instruct you to make payments directly to him or her, which the scammer will send to the lender. However, the scam artist will not forward the payments to your lender and you could still lose your home.
  • "Eliminate your debt" claims: Some companies may make false legal claims that you are not required to repay your mortgage or that they know of "secret laws" that can eliminate your debt. Do not believe these claims.
  • Refinance scams: You are encouraged to sign "foreclosure rescue" loan documents to refinance your loan. In reality, you have surrendered ownership of your home because the loan documents are actually deed transfer documents. You may falsely believe that your home has been saved from foreclosure until you receive an eviction notice months or even years later.

Beware of Foreclosure Rescue Scams-Help is Free

  • Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
  • Scam artists often target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their homes. Recognize and avoid common scams.
  • Beware of people who pressure you to sign papers immediately or who try to convince you that they can save your home if you sign or transfer the deed to your house over to them.
  • Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

Making Home Affordable

The Making Home Affordable Program offers opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure. Go to makinghomeaffordable.gov or call the Homeowner's HOPE Hotline, 1-888-995-HOPE (4673).

The Free E File Irs

Free e file irs It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. Free e file irs Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Free e file irs Select the Scenario that Applies to You: Free e file irs I am an independent contractor or in business for myself Free e file irs If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Tax Center. Free e file irs I hire or contract with individuals to provide services to my business Free e file irs If you are a business owner hiring or contracting with other individuals to provide services, you must determine whether the individuals providing services are employees or independent contractors. Follow the rest of this page to find out more about this topic and what your responsibilities are. Free e file irs Determining Whether the Individuals Providing Services are Employees or Independent Contractors Free e file irs Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be - Free e file irs An independent contractor Free e file irs An employee (common-law employee) Free e file irs A statutory employee Free e file irs A statutory nonemployee Free e file irs In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered. Free e file irs Common Law Rules Free e file irs Facts that provide evidence of the degree of control and independence fall into three categories: Free e file irs Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job? Free e file irs Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.) Free e file irs Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business? Free e file irs Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another. Free e file irs The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination. Free e file irs Form SS-8 Free e file irs If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status. Free e file irs Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).