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Free tax form Publication 519 - Additional Material Table of Contents Appendix A—Tax Treaty Exemption Procedure for StudentsBelgium Bulgaria China, People's Republic of Cyprus Czech Republic, Estonia, Latvia, Lithuania, and Slovak Republic Egypt France Germany Iceland Indonesia Israel, Philippines and Thailand Korea, Norway, Poland, and Romania Morocco Netherlands Pakistan Portugal and Spain Slovenia and Venezuela Trinidad and Tobago Tunisia Appendix B—Tax Treaty Exemption Procedure for Teachers and ResearchersBelgium Bulgaria China, People's Republic of Commonwealth of Independent States Czech Republic and Slovak Republic Egypt, Hungary, Korea, Philippines, Poland, and Romania France Germany Greece India Indonesia Israel Italy Jamaica Luxembourg Netherlands Norway Pakistan Portugal Slovenia and Venezuela Thailand Trinidad and Tobago United Kingdom Frequently Asked Questions This section answers tax-related questions commonly asked by aliens. Free tax form . Free tax form What is the difference between a resident alien and a nonresident alien for tax purposes? . Free tax form What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? . Free tax form I am a student with an F-1 Visa. Free tax form I was told that I was an exempt individual. Free tax form Does this mean I am exempt from paying U. Free tax form S. Free tax form tax? . Free tax form I am a resident alien. Free tax form Can I claim any treaty benefits? . Free tax form I am a nonresident alien with no dependents. Free tax form I am working temporarily for a U. Free tax form S. Free tax form company. Free tax form What return do I file? . Free tax form I came to the United States on June 30th of last year. Free tax form I have an H-1B Visa. Free tax form What is my tax status, resident alien or nonresident alien? What tax return do I file? . Free tax form When is my Form 1040NR due? . Free tax form My spouse is a nonresident alien. Free tax form Does he need a social security number? . Free tax form I am a nonresident alien. Free tax form Can I file a joint return with my spouse? . Free tax form I have an H-1B Visa and my husband has an F-1 Visa. Free tax form We both lived in the United States all of last year and had income. Free tax form What kind of form should we file? Do we file separate returns or a joint return? . Free tax form Is a dual-resident taxpayer the same as a dual-status taxpayer? . Free tax form I am a nonresident alien and invested money in the U. Free tax form S. Free tax form stock market through a U. Free tax form S. Free tax form brokerage company. Free tax form Are the dividends and the capital gains taxable? If yes, how are they taxed? . Free tax form I am a nonresident alien. Free tax form I receive U. Free tax form S. Free tax form social security benefits. Free tax form Are my benefits taxable? . Free tax form Do I have to pay taxes on my scholarship? . Free tax form I am a nonresident alien. Free tax form Can I claim the standard deduction? . Free tax form I am a dual-status taxpayer. Free tax form Can I claim the standard deduction? . Free tax form I am filing Form 1040NR. Free tax form Can I claim itemized deductions? . Free tax form I am not a U. Free tax form S. Free tax form citizen. Free tax form What exemptions can I claim? . Free tax form What exemptions can I claim as a dual-status taxpayer? . Free tax form I am single with a dependent child. Free tax form I was a dual-status alien in 2013. Free tax form Can I claim the earned income credit on my 2013 tax return? . Free tax form I am a nonresident alien student. Free tax form Can I claim an education credit on my Form 1040NR? . Free tax form I am a nonresident alien, temporarily working in the U. Free tax form S. Free tax form under a J visa. Free tax form Am I subject to social security and Medicare taxes? . Free tax form I am a nonresident alien student. Free tax form Social security taxes were withheld from my pay in error. Free tax form How do I get a refund of these taxes? . Free tax form I am an alien who will be leaving the United States. Free tax form What forms do I have to file before I leave? . Free tax form I filed a Form 1040-C when I left the United States. Free tax form Do I still have to file an annual U. Free tax form S. Free tax form tax return? . Free tax form What is the difference between a resident alien and a nonresident alien for tax purposes? For tax purposes, an alien is an individual who is not a U. Free tax form S. Free tax form citizen. Free tax form Aliens are classified as resident aliens and nonresident aliens. Free tax form Resident aliens are taxed on their worldwide income, the same as U. Free tax form S. Free tax form citizens. Free tax form Nonresident aliens are taxed only on their U. Free tax form S. Free tax form source income and certain foreign source income that is effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Free tax form These are the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Free tax form The term “exempt individual” does not refer to someone exempt from U. Free tax form S. Free tax form tax. Free tax form You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Free tax form See chapter 1 . Free tax form Generally, you cannot claim tax treaty benefits as a resident alien. Free tax form However, there are exceptions. Free tax form See Effect of Tax Treaties in chapter 1. Free tax form See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Free tax form You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Free tax form S. Free tax form source income on which tax was not fully paid by the amount withheld. Free tax form You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Free tax form You were a dual-status alien last year. Free tax form As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Free tax form However, for the part of the year that you were not present in the United States, you are a nonresident. Free tax form File Form 1040. Free tax form Print “Dual-Status Return” across the top. Free tax form Attach a statement showing your U. Free tax form S. Free tax form source income for the part of the year you were a nonresident. Free tax form You may use Form 1040NR as the statement. Free tax form Print “Dual-Status Statement” across the top. Free tax form See First Year of Residency in chapter 1 for rules on determining your residency starting date. Free tax form If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Free tax form See Social Security and Medicare Taxes in chapter 8. Free tax form 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 tax form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Free tax form Do not use Form 843 to request a refund of Additional Medicare Tax. Free tax form See Refund of Taxes Withheld in Error in chapter 8. Free tax form Before leaving the United States, aliens generally must obtain a certificate of compliance. Free tax form This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax form You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax form These forms are discussed in chapter 11. Free tax form Form 1040-C is not an annual U. Free tax form S. Free tax form income tax return. Free tax form If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Free tax form Chapters 5 and 7 discuss filing an annual U. Free tax form S. Free tax form income tax return. Free tax form . Free tax form What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Free tax form These are the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Free tax form The term “exempt individual” does not refer to someone exempt from U. Free tax form S. Free tax form tax. Free tax form You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Free tax form See chapter 1 . Free tax form Generally, you cannot claim tax treaty benefits as a resident alien. Free tax form However, there are exceptions. Free tax form See Effect of Tax Treaties in chapter 1. Free tax form See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Free tax form You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Free tax form S. Free tax form source income on which tax was not fully paid by the amount withheld. Free tax form You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Free tax form You were a dual-status alien last year. Free tax form As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Free tax form However, for the part of the year that you were not present in the United States, you are a nonresident. Free tax form File Form 1040. Free tax form Print “Dual-Status Return” across the top. Free tax form Attach a statement showing your U. Free tax form S. Free tax form source income for the part of the year you were a nonresident. Free tax form You may use Form 1040NR as the statement. Free tax form Print “Dual-Status Statement” across the top. Free tax form See First Year of Residency in chapter 1 for rules on determining your residency starting date. Free tax form If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Free tax form See Social Security and Medicare Taxes in chapter 8. Free tax form 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 tax form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Free tax form Do not use Form 843 to request a refund of Additional Medicare Tax. Free tax form See Refund of Taxes Withheld in Error in chapter 8. Free tax form Before leaving the United States, aliens generally must obtain a certificate of compliance. Free tax form This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax form You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax form These forms are discussed in chapter 11. Free tax form Form 1040-C is not an annual U. Free tax form S. Free tax form income tax return. Free tax form If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Free tax form Chapters 5 and 7 discuss filing an annual U. Free tax form S. Free tax form income tax return. Free tax form . Free tax form I am a student with an F-1 Visa. Free tax form I was told that I was an exempt individual. Free tax form Does this mean I am exempt from paying U. Free tax form S. Free tax form tax? The term “exempt individual” does not refer to someone exempt from U. Free tax form S. Free tax form tax. Free tax form You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Free tax form See chapter 1 . Free tax form Generally, you cannot claim tax treaty benefits as a resident alien. Free tax form However, there are exceptions. Free tax form See Effect of Tax Treaties in chapter 1. Free tax form See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Free tax form You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Free tax form S. Free tax form source income on which tax was not fully paid by the amount withheld. Free tax form You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Free tax form You were a dual-status alien last year. Free tax form As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Free tax form However, for the part of the year that you were not present in the United States, you are a nonresident. Free tax form File Form 1040. Free tax form Print “Dual-Status Return” across the top. Free tax form Attach a statement showing your U. Free tax form S. Free tax form source income for the part of the year you were a nonresident. Free tax form You may use Form 1040NR as the statement. Free tax form Print “Dual-Status Statement” across the top. Free tax form See First Year of Residency in chapter 1 for rules on determining your residency starting date. Free tax form If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Free tax form See Social Security and Medicare Taxes in chapter 8. Free tax form 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 tax form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Free tax form Do not use Form 843 to request a refund of Additional Medicare Tax. Free tax form See Refund of Taxes Withheld in Error in chapter 8. Free tax form Before leaving the United States, aliens generally must obtain a certificate of compliance. Free tax form This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax form You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax form These forms are discussed in chapter 11. Free tax form Form 1040-C is not an annual U. Free tax form S. Free tax form income tax return. Free tax form If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Free tax form Chapters 5 and 7 discuss filing an annual U. Free tax form S. Free tax form income tax return. Free tax form . Free tax form I am a resident alien. Free tax form Can I claim any treaty benefits? Generally, you cannot claim tax treaty benefits as a resident alien. Free tax form However, there are exceptions. Free tax form See Effect of Tax Treaties in chapter 1. Free tax form See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Free tax form You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Free tax form S. Free tax form source income on which tax was not fully paid by the amount withheld. Free tax form You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Free tax form You were a dual-status alien last year. Free tax form As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Free tax form However, for the part of the year that you were not present in the United States, you are a nonresident. Free tax form File Form 1040. Free tax form Print “Dual-Status Return” across the top. Free tax form Attach a statement showing your U. Free tax form S. Free tax form source income for the part of the year you were a nonresident. Free tax form You may use Form 1040NR as the statement. Free tax form Print “Dual-Status Statement” across the top. Free tax form See First Year of Residency in chapter 1 for rules on determining your residency starting date. Free tax form If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Free tax form See Social Security and Medicare Taxes in chapter 8. Free tax form 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 tax form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Free tax form Do not use Form 843 to request a refund of Additional Medicare Tax. Free tax form See Refund of Taxes Withheld in Error in chapter 8. Free tax form Before leaving the United States, aliens generally must obtain a certificate of compliance. Free tax form This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax form You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax form These forms are discussed in chapter 11. Free tax form Form 1040-C is not an annual U. Free tax form S. Free tax form income tax return. Free tax form If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Free tax form Chapters 5 and 7 discuss filing an annual U. Free tax form S. Free tax form income tax return. Free tax form . Free tax form I am a nonresident alien with no dependents. Free tax form I am working temporarily for a U. Free tax form S. Free tax form company. Free tax form What return do I file? You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Free tax form S. Free tax form source income on which tax was not fully paid by the amount withheld. Free tax form You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Free tax form You were a dual-status alien last year. Free tax form As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Free tax form However, for the part of the year that you were not present in the United States, you are a nonresident. Free tax form File Form 1040. Free tax form Print “Dual-Status Return” across the top. Free tax form Attach a statement showing your U. Free tax form S. Free tax form source income for the part of the year you were a nonresident. Free tax form You may use Form 1040NR as the statement. Free tax form Print “Dual-Status Statement” across the top. Free tax form See First Year of Residency in chapter 1 for rules on determining your residency starting date. Free tax form If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Free tax form See Social Security and Medicare Taxes in chapter 8. Free tax form 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 tax form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Free tax form Do not use Form 843 to request a refund of Additional Medicare Tax. Free tax form See Refund of Taxes Withheld in Error in chapter 8. Free tax form Before leaving the United States, aliens generally must obtain a certificate of compliance. Free tax form This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax form You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax form These forms are discussed in chapter 11. Free tax form Form 1040-C is not an annual U. Free tax form S. Free tax form income tax return. Free tax form If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Free tax form Chapters 5 and 7 discuss filing an annual U. Free tax form S. Free tax form income tax return. Free tax form . Free tax form I came to the United States on June 30th of last year. Free tax form I have an H-1B Visa. Free tax form What is my tax status, resident alien or nonresident alien? What tax return do I file? You were a dual-status alien last year. Free tax form As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Free tax form However, for the part of the year that you were not present in the United States, you are a nonresident. Free tax form File Form 1040. Free tax form Print “Dual-Status Return” across the top. Free tax form Attach a statement showing your U. Free tax form S. Free tax form source income for the part of the year you were a nonresident. Free tax form You may use Form 1040NR as the statement. Free tax form Print “Dual-Status Statement” across the top. Free tax form See First Year of Residency in chapter 1 for rules on determining your residency starting date. Free tax form If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Free tax form See Social Security and Medicare Taxes in chapter 8. Free tax form 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 tax form If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Free tax form Do not use Form 843 to request a refund of Additional Medicare Tax. Free tax form See Refund of Taxes Withheld in Error in chapter 8. Free tax form Before leaving the United States, aliens generally must obtain a certificate of compliance. Free tax form This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax form You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax form These forms are discussed in chapter 11. Free tax form Form 1040-C is not an annual U. Free tax form S. Free tax form income tax return. Free tax form If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Free tax form Chapters 5 and 7 discuss filing an annual U. Free tax form S. Free tax form income tax return. Free tax form . Free tax form When is my Form 1040NR due? If you are an employee and you receive wages subject to U. Free tax form S. Free tax form income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Free tax form If you file for the 2013 calendar year, your return is due April 15, 2014. Free tax form If you are not an employee who receives wages subject to U. Free tax form S. Free tax form income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free tax form For the 2013 calendar year, file your return by June 16, 2014. Free tax form For more information on when and where to file, see chapter 7 . Free tax form A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Free tax form If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Free tax form If you are a U. Free tax form S. Free tax form citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Free tax form Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Free tax form See Identification Number in chapter 5 for more information. Free tax form Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Free tax form However, nonresident aliens married to U. Free tax form S. Free tax form citizens or residents can choose to be treated as U. Free tax form S. Free tax form residents and file joint returns. Free tax form For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Assuming both of you had these visas for all of last year, you are a resident alien. Free tax form Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Free tax form You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Free tax form Your husband must file Form 1040NR or 1040NR-EZ. Free tax form No. Free tax form 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 tax form See Effect of Tax Treaties in chapter 1. Free tax form You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Free tax form See chapter 6 . Free tax form The following rules apply if the dividends and capital gains are not effectively connected with a U. Free tax form S. Free tax form trade or business. Free tax form Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Free tax form See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Free tax form Dividends are generally taxed at a 30% (or lower treaty) rate. Free tax form The brokerage company or payor of the dividends should withhold this tax at source. Free tax form If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Free tax form If the capital gains and dividends are effectively connected with a U. Free tax form S. Free tax form trade or business, they are taxed according to the same rules and at the same rates that apply to U. Free tax form S. Free tax form citizens and residents. Free tax form If you are a nonresident alien, 85% of any U. Free tax form S. Free tax form social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Free tax form See The 30% Tax in chapter 4. Free tax form If you are a nonresident alien and the scholarship is not from U. Free tax form S. Free tax form sources, it is not subject to U. Free tax form S. Free tax form tax. Free tax form See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Free tax form S. Free tax form sources. Free tax form If your scholarship is from U. Free tax form S. Free tax form sources or you are a resident alien, your scholarship is subject to U. Free tax form S. Free tax form tax according to the following rules. Free tax form If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Free tax form However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Free tax form See Scholarships and Fellowship Grants in chapter 3 for more information. Free tax form If you are not a candidate for a degree, your scholarship is taxable. Free tax form Nonresident aliens cannot claim the standard deduction. Free tax form However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Free tax form You cannot claim the standard deduction allowed on Form 1040. Free tax form However, you can itemize any allowable deductions. Free tax form Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free tax form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free tax form S. Free tax form trade or business. Free tax form See Itemized Deductions in chapter 5. Free tax form Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free tax form S. Free tax form citizens. Free tax form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free tax form S. Free tax form tax return. Free tax form There are special rules for residents of Mexico, Canada, and South Korea; for U. Free tax form S. Free tax form nationals; and for students and business apprentices from India. Free tax form See Exemptions in chapter 5. Free tax form As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Free tax form Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Free tax form The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Free tax form You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Free tax form If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Free tax form See chapter 6 for more information on dual-status aliens. Free tax form If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free tax form However, if you are married and choose to file a joint return with a U. Free tax form S. Free tax form citizen or resident spouse, you may be eligible for these credits. Free tax form See Nonresident Spouse Treated as a Resident in chapter 1. Free tax form Generally, services you perform 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 you perform the services to carry out the purpose
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Understanding Your CP268 Notice

We made changes to your return because we believe there is a miscalculation on your return. You have a potential overpayment credit because of this miscalculation.


What you need to do

  • Read and review your notice carefully ― it will explain the change
  • Compare our changes to the information on your tax return
  • Call the toll-free number listed on your notice within 30 days to request a refund check or to apply the credit to other types of tax or tax periods
  • Correct your copy of your tax return for your records

You may want to...


Answers to Common Questions

  • What do I do if I find an uncredited or misapplied payment?
    Contact us at the toll-free number listed on your notice with your information. Our representative will discuss the issue with you and provide further instructions.

  • What choices do I have about what to do with my overpayment?
    You can have your overpayment credit refunded to you or you can have it applied to other taxes or tax periods.

  • When can I expect to receive my refund?
    You will receive it in four to six weeks if you respond to your notice within 30 days and if you owe no other taxes or debts we’re required to collect.

  • What can I do if I don't receive my refund in four to six weeks?
    Call us at the toll-free number listed on the top right corner of your notice.

  • What do I do if I need to make a correction to my account?
    Contact us at the toll-free number listed on your notice with your information. Our representative will discuss the issue with you and provide further instructions.

  • What do I need to do next year to get my refund through a direct deposit?
    Complete a Form 8050, Direct Deposit of Corporate Tax Refund and attach it to your return next year when you file your Form 1120, U.S. Corporation Income Tax Return, or your Form 1120S, U.S. Income Tax Return for an S Corporation.

  •  


  • Tips for next year

    Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions for which you may qualify. In many cases, you can file free. Learn more about how to file electronically here.


    Understanding your notice

    Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

    Notice CP268, Page 1

    Notice CP268, Page 2

    Notice CP268, Page 3

Page Last Reviewed or Updated: 30-Jan-2014

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 Tax Form

Free tax form 6. Free tax form   How To Figure Cost of Goods Sold Table of Contents Introduction Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42Line 35 Inventory at Beginning of Year Line 36 Purchases Less Cost of Items Withdrawn for Personal Use Line 37 Cost of Labor Line 38 Materials and Supplies Line 39 Other Costs Line 40 Add Lines 35 through 39 Line 41 Inventory at End of Year Line 42 Cost of Goods Sold Introduction If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts on Schedule C. Free tax form However, to determine these costs, you must value your inventory at the beginning and end of each tax year. Free tax form This chapter applies to you if you are a manufacturer, wholesaler, or retailer or if you are engaged in any business that makes, buys, or sells goods to produce income. Free tax form This chapter does not apply to a personal service business, such as the business of a doctor, lawyer, carpenter, or painter. Free tax form However, if you work in a personal service business and also sell or charge for the materials and supplies normally used in your business, this chapter applies to you. Free tax form If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales. Free tax form For more information, see chapter 2. Free tax form Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42 Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. Free tax form These lines are reproduced below and are explained in the discussion that follows. Free tax form 35 Inventory at beginning of year. Free tax form If different from last year's closing inventory, attach explanation   36 Purchases less cost of items withdrawn for personal use   37 Cost of labor. Free tax form Do not include any amounts paid to yourself   38 Materials and supplies   39 Other costs   40 Add lines 35 through 39   41 Inventory at end of year   42 Cost of goods sold. Free tax form Subtract line 41 from line 40. Free tax form  Enter the result here and on line 4   Line 35 Inventory at Beginning of Year If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers. Free tax form If you are a manufacturer or producer, it includes the total cost of raw materials, work in process, finished goods, and materials and supplies used in manufacturing the goods (see Inventories in chapter 2). Free tax form Opening inventory usually will be identical to the closing inventory of the year before. Free tax form You must explain any difference in a schedule attached to your return. Free tax form Donation of inventory. Free tax form   If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. Free tax form The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Free tax form You must remove the amount of your contribution deduction from your opening inventory. Free tax form It is not part of the cost of goods sold. Free tax form   If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Free tax form Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Free tax form For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Free tax form   A special rule may apply to certain donations of food inventory. Free tax form See Publication 526, Charitable Contributions. Free tax form Example 1. Free tax form You are a calendar year taxpayer who uses an accrual method of accounting. Free tax form In 2013, you contributed property from inventory to a church. Free tax form It had a fair market value of $600. Free tax form The closing inventory at the end of 2012 properly included $400 of costs due to the acquisition of the property, and in 2012, you properly deducted $50 of administrative and other expenses attributable to the property as business expenses. Free tax form The charitable contribution allowed for 2013 is $400 ($600 − $200). Free tax form The $200 is the amount that would be ordinary income if you had sold the contributed inventory at fair market value on the date of the gift. Free tax form The cost of goods sold you use in determining gross income for 2013 must not include the $400. Free tax form You remove that amount from opening inventory for 2013. Free tax form Example 2. Free tax form If, in Example 1, you acquired the contributed property in 2013 at a cost of $400, you would include the $400 cost of the property in figuring the cost of goods sold for 2013 and deduct the $50 of administrative and other expenses attributable to the property for that year. Free tax form You would not be allowed any charitable contribution deduction for the contributed property. Free tax form Line 36 Purchases Less Cost of Items Withdrawn for Personal Use If you are a merchant, use the cost of all merchandise you bought for sale. Free tax form If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into a finished product. Free tax form Trade discounts. Free tax form   The differences between the stated prices of articles and the actual prices you pay for them are called trade discounts. Free tax form You must use the prices you pay (not the stated prices) in figuring your cost of purchases. Free tax form Do not show the discount amount separately as an item in gross income. Free tax form   An automobile dealer must record the cost of a car in inventory reduced by any manufacturer's rebate that represents a trade discount. Free tax form Cash discounts. Free tax form   Cash discounts are amounts your suppliers let you deduct from your purchase invoices for prompt payments. Free tax form There are two methods of accounting for cash discounts. Free tax form You can either credit them to a separate discount account or deduct them from total purchases for the year. Free tax form Whichever method you use, you must be consistent. Free tax form If you want to change your method of figuring inventory cost, you must file Form 3115, Application for Change in Accounting Method. Free tax form For more information, see Change in Accounting Method in chapter 2. Free tax form   If you credit cash discounts to a separate account, you must include this credit balance in your business income at the end of the tax year. Free tax form If you use this method, do not reduce your cost of goods sold by the cash discounts. Free tax form Purchase returns and allowances. Free tax form   You must deduct all returns and allowances from your total purchases during the year. Free tax form Merchandise withdrawn from sale. Free tax form   If you withdraw merchandise for your personal or family use, you must exclude this cost from the total amount of merchandise you bought for sale. Free tax form Do this by crediting the purchases or sales account with the cost of merchandise you withdraw for personal use. Free tax form You must also charge the amount to your drawing account. Free tax form   A drawing account is a separate account you should keep to record the business income you withdraw to pay for personal and family expenses. Free tax form As stated above, you also use it to record withdrawals of merchandise for personal or family use. Free tax form This account is also known as a “withdrawals account” or “personal account. Free tax form ” Line 37 Cost of Labor Labor costs are usually an element of cost of goods sold only in a manufacturing or mining business. Free tax form Small merchandisers (wholesalers, retailers, etc. Free tax form ) usually do not have labor costs that can properly be charged to cost of goods sold. Free tax form In a manufacturing business, labor costs properly allocable to the cost of goods sold include both the direct and indirect labor used in fabricating the raw material into a finished, saleable product. Free tax form Direct labor. Free tax form   Direct labor costs are the wages you pay to those employees who spend all their time working directly on the product being manufactured. Free tax form They also include a part of the wages you pay to employees who work directly on the product part time if you can determine that part of their wages. Free tax form Indirect labor. Free tax form   Indirect labor costs are the wages you pay to employees who perform a general factory function that does not have any immediate or direct connection with making the saleable product, but that is a necessary part of the manufacturing process. Free tax form Other labor. Free tax form   Other labor costs not properly chargeable to the cost of goods sold can be deducted as selling or administrative expenses. Free tax form Generally, the only kinds of labor costs properly chargeable to your cost of goods sold are the direct or indirect labor costs and certain other costs treated as overhead expenses properly charged to the manufacturing process, as discussed later under Line 39 Other Costs. Free tax form Line 38 Materials and Supplies Materials and supplies, such as hardware and chemicals, used in manufacturing goods are charged to cost of goods sold. Free tax form Those that are not used in the manufacturing process are treated as deferred charges. Free tax form You deduct them as a business expense when you use them. Free tax form Business expenses are discussed in chapter 8. Free tax form Line 39 Other Costs Examples of other costs incurred in a manufacturing or mining process that you charge to your cost of goods sold are as follows. Free tax form Containers. Free tax form   Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. Free tax form If they are not an integral part of the manufactured product, their costs are shipping or selling expenses. Free tax form Freight-in. Free tax form   Freight-in, express-in, and cartage-in on raw materials, supplies you use in production, and merchandise you purchase for sale are all part of cost of goods sold. Free tax form Overhead expenses. Free tax form   Overhead expenses include expenses such as rent, heat, light, power, insurance, depreciation, taxes, maintenance, labor, and supervision. Free tax form The overhead expenses you have as direct and necessary expenses of the manufacturing operation are included in your cost of goods sold. Free tax form Line 40 Add Lines 35 through 39 The total of lines 35 through 39 equals the cost of the goods available for sale during the year. Free tax form Line 41 Inventory at End of Year Subtract the value of your closing inventory (including, as appropriate, the allocable parts of the cost of raw materials and supplies, direct labor, and overhead expenses) from line 40. Free tax form Inventory at the end of the year is also known as closing or ending inventory. Free tax form Your ending inventory will usually become the beginning inventory of your next tax year. Free tax form Line 42 Cost of Goods Sold When you subtract your closing inventory (inventory at the end of the year) from the cost of goods available for sale, the remainder is your cost of goods sold during the tax year. 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