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Sample 1040ez

Sample 1040ez 3. Sample 1040ez   Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. Sample 1040ez Traditional IRA mistakenly moved to SIMPLE IRA. Sample 1040ez When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). Sample 1040ez It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. Sample 1040ez Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). Sample 1040ez This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. Sample 1040ez See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. Sample 1040ez If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. Sample 1040ez See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. Sample 1040ez What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. Sample 1040ez See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. Sample 1040ez A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. Sample 1040ez These contributions are called salary reduction contributions. Sample 1040ez All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. Sample 1040ez The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. Sample 1040ez Contributions are made on behalf of eligible employees. Sample 1040ez (See Eligible Employees below. Sample 1040ez ) Contributions are also subject to various limits. Sample 1040ez (See How Much Can Be Contributed on Your Behalf , later. Sample 1040ez ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. Sample 1040ez See How Are Contributions Made , later. Sample 1040ez You may be able to claim a credit for contributions to your SIMPLE plan. Sample 1040ez For more information, see chapter 4. Sample 1040ez Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. Sample 1040ez Self-employed individual. Sample 1040ez   For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. Sample 1040ez Excludable employees. Sample 1040ez   Your employer can exclude the following employees from participating in the SIMPLE plan. Sample 1040ez Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). Sample 1040ez Employees who are nonresident aliens and received no earned income from sources within the United States. Sample 1040ez Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. Sample 1040ez Compensation. Sample 1040ez   For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. Sample 1040ez Wages, tips, and other pay from your employer that is subject to income tax withholding. Sample 1040ez Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. Sample 1040ez Self-employed individual compensation. Sample 1040ez   For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. Sample 1040ez   For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. Sample 1040ez How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. Sample 1040ez They are made on your behalf by your employer. Sample 1040ez Your employer must also make either matching contributions or nonelective contributions. Sample 1040ez Salary reduction contributions. Sample 1040ez   During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). Sample 1040ez You can choose to cancel the election at any time during the year. Sample 1040ez   Salary reduction contributions are also referred to as “elective deferrals. Sample 1040ez ”   Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. Sample 1040ez Matching contributions. Sample 1040ez   Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. Sample 1040ez See How Much Can Be Contributed on Your Behalf below. Sample 1040ez These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. Sample 1040ez These contributions are referred to as matching contributions. Sample 1040ez   Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. Sample 1040ez Nonelective contributions. Sample 1040ez   Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. Sample 1040ez These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. Sample 1040ez   One of the requirements your employer must satisfy is notifying the employees that the election was made. Sample 1040ez For other requirements that your employer must satisfy, see chapter 3 of Publication 560. Sample 1040ez How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. Sample 1040ez Salary reduction contributions limit. Sample 1040ez   Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. Sample 1040ez The limitation remains at $12,000 for 2014. Sample 1040ez If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. Sample 1040ez You, not your employer, are responsible for monitoring compliance with these limits. Sample 1040ez Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. Sample 1040ez The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. Sample 1040ez $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. Sample 1040ez The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. Sample 1040ez The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. Sample 1040ez Matching employer contributions limit. Sample 1040ez   Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. Sample 1040ez These matching contributions cannot be more than 3% of your compensation for the calendar year. Sample 1040ez See Matching contributions less than 3% below. Sample 1040ez Example 1. Sample 1040ez In 2013, Joshua was a participant in his employer's SIMPLE plan. Sample 1040ez His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). Sample 1040ez Instead of taking it all in cash, Joshua elected to have 12. Sample 1040ez 5% of his weekly pay ($100) contributed to his SIMPLE IRA. Sample 1040ez For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. Sample 1040ez Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. Sample 1040ez Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). Sample 1040ez Example 2. Sample 1040ez Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. Sample 1040ez 94% of his weekly pay contributed to his SIMPLE IRA. Sample 1040ez In this example, Joshua's salary reduction contributions for the year (2. Sample 1040ez 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). Sample 1040ez Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. Sample 1040ez In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. Sample 1040ez Matching contributions less than 3%. Sample 1040ez   Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. Sample 1040ez   For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. Sample 1040ez If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. Sample 1040ez Nonelective employer contributions limit. Sample 1040ez   If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. Sample 1040ez For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. Sample 1040ez   Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. Sample 1040ez Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. Sample 1040ez This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. Sample 1040ez Example 3. Sample 1040ez Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. Sample 1040ez Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. Sample 1040ez In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). Sample 1040ez Traditional IRA mistakenly moved to SIMPLE IRA. Sample 1040ez   If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. Sample 1040ez For more information, see Recharacterizations in chapter 1. Sample 1040ez Recharacterizing employer contributions. Sample 1040ez   You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. Sample 1040ez SEPs are discussed in chapter 2 of Publication 560. Sample 1040ez SIMPLE plans are discussed in this chapter. Sample 1040ez Converting from a SIMPLE IRA. Sample 1040ez   Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . Sample 1040ez    However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. Sample 1040ez When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. Sample 1040ez These rules are discussed in chapter 1. Sample 1040ez Your employer cannot restrict you from taking distributions from a SIMPLE IRA. Sample 1040ez Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. Sample 1040ez If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. Sample 1040ez See Additional Tax on Early Distributions, later. Sample 1040ez Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. Sample 1040ez Two-year rule. Sample 1040ez   To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. Sample 1040ez The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. Sample 1040ez   After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). Sample 1040ez Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. Sample 1040ez If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. Sample 1040ez If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. 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Answers to Frequently Asked Questions for Individuals of the Same Sex Who Are Married Under State Law

The following questions and answers provide information to individuals of the same sex who are lawfully married (same-sex spouses). These questions and answers reflect the holdings in Revenue Ruling 2013-17 in 2013-38 IRB 201.

Q1. When are individuals of the same sex lawfully married for federal tax purposes?

A1. For federal tax purposes, the IRS looks to state or foreign law to determine whether individuals are married. The IRS has a general rule recognizing a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages.

Q2. Can same-sex spouses file federal tax returns using a married filing jointly or married filing separately status?

A2. Yes. For tax year 2013 and going forward, same-sex spouses generally must file using a married filing separately or jointly filing status. For tax year 2012 and all prior years, same-sex spouses who file an original tax return on or after Sept. 16, 2013 (the effective date of Rev. Rul. 2013-17), generally must file using a married filing separately or jointly filing status. For tax year 2012, same-sex spouses who filed their tax return before Sept. 16, 2013, may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status. For tax years 2011 and earlier, same-sex spouses who filed their tax returns timely may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status provided the period of limitations for amending the return has not expired. A taxpayer generally may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html

Q3. Can a taxpayer and his or her same-sex spouse file a joint return if they were married in a state that recognizes same-sex marriages but they live in a state that does not recognize their marriage?

A3. Yes. For federal tax purposes, the IRS has a general rule recognizing a marriage of same-sex individuals that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages. The rules for using a married filing jointly or married filing separately status described in Q&A #2 apply to these married individuals. 

Q4. Can a taxpayer’s same-sex spouse be a dependent of the taxpayer?

A4. No. A taxpayer’s spouse cannot be a dependent of the taxpayer.

Q5. Can a same-sex spouse file using head of household filing status?

A5. A taxpayer who is married cannot file using head of household filing status. However, a married taxpayer may be considered unmarried and may use the head-of-household filing status if the taxpayer lives apart from his or her spouse for the last 6 months of the taxable year and provides more than half the cost of maintaining a household that is the principal place of abode of the taxpayer’s dependent child for more than half of the year. See Publication 501 for more details.

Q6. If same-sex spouses (who file using the married filing separately status) have a child, which parent may claim the child as a dependent?

A6. If a child is a qualifying child under section 152(c) of both parents who are spouses (who file using the married filing separate status), either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time during the taxable year. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.   

Q7. Can a taxpayer who is married to a person of the same sex claim the standard deduction if the taxpayer’s spouse itemized deductions?

A7. No. If a taxpayer’s spouse itemized his or her deductions, the taxpayer cannot claim the standard deduction (section 63(c)(6)(A)).

Q8. If a taxpayer adopts the child of his or her same-sex spouse as a second parent or co-parent, may the taxpayer (“adopting parent”) claim the adoption credit for the qualifying adoption expenses he or she pays or incurs to adopt the child?

A8. No. The adopting parent may not claim an adoption credit. A taxpayer may not claim an adoption credit for expenses incurred in adopting the child of the taxpayer’s spouse (section 23). 

Q9. Do provisions of the federal tax law such as section 66 (treatment of community income) and section 469(i)(5) ($25,000 offset for passive activity losses for rental real estate activities) apply to same-sex spouses?

A9. Yes. Like other provisions of the federal tax law that apply to married taxpayers, section 66 and section 469(i)(5) apply to same-sex spouses because same-sex spouses are married for all federal tax purposes.

Q10. If an employer provided health coverage for an employee’s same-sex spouse and included the value of that coverage in the employee’s gross income, can the employee file an amended Form 1040 reflecting the employee’s status as a married individual to recover federal income tax paid on the value of the health coverage of the employee’s spouse?

A10. Yes, for all years for which the period of limitations for filing a claim for refund is open. Generally, a taxpayer may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. If an employer provided health coverage for an employee’s same-sex spouse, the employee may claim a refund of income taxes paid on the value of coverage that would have been excluded from income had the employee’s spouse been recognized as the employee’s legal spouse for tax purposes. This claim for a refund generally would be made through the filing of an amended Form 1040. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. For a discussion regarding refunds of Social Security and Medicare taxes, see Q&A #12 and Q&A #13.

Example. Employer sponsors a group health plan covering eligible employees and their dependents and spouses (including same-sex spouses). Fifty percent of the cost of health coverage elected by employees is paid by Employer. Employee A was married to same-sex Spouse B at all times during 2012. Employee A elected coverage for Spouse B through Employer’s group health plan beginning Jan. 1, 2012. The value of the employer-funded portion of Spouse B’s health coverage was $250 per month.

The amount in Box 1, “Wages, tips, other compensation,” of the 2012 Form W-2 provided by Employer to Employee A included $3,000 ($250 per month x 12 months) of income reflecting the value of employer-funded health coverage provided to Spouse B.  Employee A filed Form 1040 for the 2012 taxable year reflecting the Box 1 amount reported on Form W-2.

Employee A may file an amended Form 1040 for the 2012 taxable year excluding the value of Spouse B’s employer-funded health coverage ($3,000) from gross income.

Q11. If an employer sponsored a cafeteria plan that allowed employees to pay premiums for health coverage on a pre-tax basis, can a participating employee file an amended return to recover income taxes paid on premiums that the employee paid on an after-tax basis for the health coverage of the employee’s same-sex spouse?

A11. Yes, for all years for which the period of limitations for filing a claim for refund is open. Generally, a taxpayer may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. If an employer sponsored a cafeteria plan under which an employee elected to pay for health coverage for the employee on a pre-tax basis, and if the employee purchased coverage on an after-tax basis for the employee’s same-sex spouse under the employer’s health plan, the employee may claim a refund of income taxes paid on the premiums for the coverage of the employee’s spouse. This claim for a refund generally would be made through the filing of an amended Form 1040. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. For a discussion regarding refunds of Social Security and Medicare taxes, see Q&A #12 and Q&A #13.

Example. Employer sponsors a group health plan as part of a cafeteria plan with a calendar year plan year. The full cost of spousal and dependent coverage is paid by the employees. In the open enrollment period for the 2012 plan year, Employee C elected to purchase self-only health coverage through salary reduction under Employer’s cafeteria plan. On March 1, 2012, Employee C was married to same-sex spouse D. Employee C purchased health coverage for Spouse D through Employer’s group health plan beginning March 1, 2012. The premium paid by Employee C for Spouse D’s health coverage was $500 per month.

The amount in Box 1, “Wages, tips, other compensation,” of the 2012 Form W-2 provided by Employer to Employee C included the $5,000 ($500 per month x 10 months) of premiums paid by Employee C for Spouse D’s health coverage. Employee C filed Form 1040 for the 2012 taxable year reflecting the Box 1 amount reported on Form W-2.

Employee C’s salary reduction election is treated as including the value of the same-sex spousal coverage purchased for Spouse D. Employee C may file an amended Form 1040 for the 2012 taxable year excluding the premiums paid for Spouse D’s health coverage ($5,000) from gross income.

Q12. In the situations described in Q&A #10 and Q&A #11, may the employer claim a refund for the Social Security taxes and Medicare taxes paid on the benefits? 

A12. Yes. If the period of limitations for filing a claim for refund is open, the employer may claim a refund of, or make an adjustment for, any overpayment of Social Security taxes and Medicare taxes. The requirements for filing a claim for refund or for making an adjustment for an overpayment of the employer and employee portions of Social Security and Medicare taxes can be found in the Instructions for Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund. Notice 2013-61 provides special administrative procedures for employers to file claims for refunds or make adjustments for overpayments of Social Security taxes and Medicare taxes paid on same-sex spouse benefits. 

Q13. In the situations described in Q&A #10 and Q&A #11, may the employer claim a refund or make an adjustment of income tax withholding that was withheld from the employee with respect to the benefits in prior years? 

A13. No. Claims for refund of overwithheld income tax for prior years cannot be made by employers. The employee may file for any refund of income tax due for prior years on Form 1040X, provided the period of limitations for claiming a refund has not expired. See Q&A #10 and Q&A #11.

Employers may make adjustments for income tax withholding that was overwithheld from an employee in the current year provided the employer has repaid or reimbursed the employee for the overwithheld income tax before the end of the calendar year.

Q14. If an employer cannot locate a former employee with a same-sex spouse who received the benefits described in Q&A #10 and Q&A #11, may the employer still claim a refund of the employer portion of the Social Security and Medicare taxes on the benefits?

A14. Yes, if the employer makes reasonable attempts to locate an employee who received the benefits described in Q&A #10 and Q&A #11 that were treated as wages but the employer is unable to locate the employee, the employer can claim a refund of the employer portion of Social Security and Medicare taxes, but not the employee portion. Also, if an employee is notified and given the opportunity to participate in the claim for refund of Social Security and Medicare taxes but declines in writing, the employer can claim a refund of the employer portion of the taxes, but not the employee portion. Employers can use the special administrative procedure set forth in Notice 2013-61 to file these claims.

Q15. If a sole proprietor employs his or her same-sex spouse in his or her business, can the sole proprietor get a refund of Social Security, Medicare and FUTA taxes on the wages that the sole proprietor paid to the same-sex spouse as an employee in the business?

A15. Services performed by an employee in the employ of his or her spouse are excluded from the definition of employment for purposes of the Federal Unemployment Tax Act (FUTA). Therefore, for all years for which the period of limitations is open, the sole proprietor can claim a refund of the FUTA tax paid on the compensation that the sole proprietor paid his or her same-sex spouse as an employee in the business. Services of a spouse are excluded from Social Security and Medicare taxes only if the services are not in the course of the employer's trade or business, or if it is domestic service in a private home of the employer.

Q16. What rules apply to qualified retirement plans pursuant to Rev. Rul. 2013-17?

A16. Qualified retirement plans are required to comply with the following rules pursuant to Rev. Rul. 2013-17:

  1. A qualified retirement plan must treat a same-sex spouse as a spouse for purposes of satisfying the federal tax laws relating to qualified retirement plans.
  2. For purposes of satisfying the federal tax laws relating to qualified retirement plans, a qualified retirement plan must recognize a same-sex marriage that was validly entered into in a jurisdiction whose laws authorize the marriage, even if the married couple lives in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages.
  3. A person who is in a registered domestic partnership or civil union is not  considered to be a spouse for purposes of applying the federal tax law requirements relating to qualified retirement plans, regardless of whether that person’s partner is of the opposite or same sex.

Q17. What are some examples of the consequences of these rules for qualified retirement plans?

A17. The following are some examples of the consequences of these rules:

  1. Plan A, a qualified defined benefit plan, is maintained by Employer X, which operates only in a state that does not recognize same-sex marriages. Nonetheless, Plan A must treat a participant who is married to a spouse of the same sex under the laws of a different jurisdiction as married for purposes of applying the qualification requirements that relate to spouses.
  2. Plan B is a qualified defined contribution plan and provides that the participant’s account must be paid to the participant’s spouse upon the participant’s death unless the spouse consents to a different beneficiary. Plan B does not provide for any annuity forms of distribution. Plan B must pay this death benefit to the same-sex surviving spouse of any deceased participant. Plan B is not required to provide this death benefit to a surviving registered domestic partner of a deceased participant. However, Plan B is allowed to make a participant’s registered domestic partner the default beneficiary who will receive the death benefit unless the participant chooses a different beneficiary.

Q18. As of when do the rules of Rev. Rul. 2013-17 apply to qualified retirement plans?

A18. Qualified retirement plans must comply with these rules as of Sept. 16, 2013. Although Rev. Rul. 2013-17 allows taxpayers to file amended returns that relate to prior periods in reliance on the rules in Rev. Rul. 2013-17 with respect to many matters, this rule does not extend to matters relating to qualified retirement plans. The IRS has not yet provided guidance regarding the application of Windsor and these rules to qualified retirement plans with respect to periods before Sept. 16, 2013.

Q19. Will the IRS issue further guidance on how qualified retirement plans and other tax-favored retirement arrangements must comply with Windsor and Rev. Rul. 2013-17?

A19. The IRS intends to issue further guidance on how qualified retirement plans and other tax-favored retirement arrangements must comply with Windsor and Rev. Rul. 2013-17.  It is expected that future guidance will address the following, among other issues:

  1. Plan amendment requirements (including the timing of any required amendments).
  2. Any necessary corrections relating to plan operations for periods before future guidance is issued.

Q20. Can a same-sex married couple elect to treat a jointly owned and operated unincorporated business as a Qualified Joint Venture?

A20. Yes. Spouses that wholly own and operate an unincorporated business and that meet certain other requirements may avoid Federal partnership tax treatment by electing to be a Qualified Joint Venture. For more information on Qualified Joint Ventures, see the tax topic “Husband and Wife Business” at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Husband-and-Wife-Business.

Q21. In the situations described in FAQ #10 and FAQ #11, may the employee claim a refund for the social security and Medicare taxes paid on the benefits if the employer will not?

A21. Yes. If the period of limitations for filing a claim for refund is open and the employee has not been reimbursed by the employer for the Social Security and Medicare taxes and has not authorized the employer to file a claim for refund of those taxes on his or her behalf, the employee may claim a refund. The employee should seek a refund of Social Security and Medicare taxes from his or her employer first. However, if the employer indicates an intention not to file a claim or adjust the overpaid Social Security and Medicare taxes, the employee may claim a refund of any overpayment of employee Social Security and Medicare taxes by filing Form 843, Claim for Refund and Request for Abatement. The requirements for an employee filing a claim for refund of the employee portions of Social Security and Medicare taxes can be found in the Instructions for Form 843. Employees should write “Windsor Claim” in dark, bold letters across the top margin of Form 843.

Q22. Is an employer that repays or reimburses an employee on or before Dec. 31, 2013, for an overpayment of Social Security and Medicare taxes and income tax withholding with respect to same-sex spouse benefits provided in 2013 required to obtain a written statement from the employee confirming the employee did not make a claim for refund of the overcollected taxes (or the claim was rejected) and will not make any future claim for refund or credit of the overcollected taxes?

A22. No. An employer using the first special administrative procedure under Notice 2013-61 (i.e., employer repays or reimburses an employee for 2013 overpayments of taxes on or before Dec. 31, 2013, and corrects the overpayment on the fourth quarter 2013 Form 941) does not need to obtain the written statement from its employee with respect to the 2013 overpayments. However, an employer using the second special administrative procedure under Notice 2013-61 (i.e., employer does not repay or reimburse an employee for an overpayment of taxes on or before Dec. 31, 2013, and corrects the overpayment on a Form 941-X) is required to obtain such written statement from each affected employee.

Q23. If an individual employed his or her same-sex spouse to perform domestic (household) services in the individual’s private home, can the individual get a refund of Social Security, Medicare and FUTA taxes on wages that the individual paid to the spouse for such service? If so, which forms should the individual use to claim refunds?

A23. Yes, if the period of limitations for filing a claim for refund is open, the individual can get a refund of Social Security, Medicare and FUTA taxes paid on remuneration for domestic services in the individual’s private home that were performed by his or her same sex spouse as the individual’s employee. If the taxes for these services were reported on Schedule H (Form 1040), Household Employment Taxes, and taxes were paid in connection with the Form 1040, the individual should file an amended Form 1040 to claim refund of those taxes together with an amended Schedule H. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. If the Social Security and Medicare taxes for the domestic service were reported on Form 941, Employer’s QUARTERLY Federal Tax Return, the individual employer can use Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, to claim a refund of these taxes. The requirements for filing a claim for refund or making an adjustment of the employer and employee portions of Social Security and Medicare taxes can be found in the Instructions for Form 941-X. Notice 2013-61 provides special administrative procedures for employers to file claims for refunds or make adjustments for an overpayment of social security taxes and Medicare taxes on same-sex spouse benefits. If the FUTA taxes for the domestic service were reported on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, the individual employer can file an amended Form 940 for the prior year to obtain a refund. The previous year’s Form 940 should be used to claim a refund of FUTA taxes for that prior year. (Forms 940 for prior years may also be found at IRS.gov.)

Related Items:

 

Page Last Reviewed or Updated: 07-Mar-2014

The Sample 1040ez

Sample 1040ez Publication 54 - Additional Material Questions and AnswersThis section answers tax- related questions commonly asked by taxpayers living abroad. Sample 1040ez 1. Sample 1040ez Filing Requirements—Where, When, and How . Sample 1040ez 1) When are U. Sample 1040ez S. Sample 1040ez income tax returns due? . Sample 1040ez 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. Sample 1040ez How can I secure an extension of time to file my return, when should I file my return, and what forms are required? . Sample 1040ez 3) My entire income qualifies for the foreign earned income exclusion. Sample 1040ez Must I file a tax return? . Sample 1040ez 4) I was sent abroad by my company in November of last year. Sample 1040ez I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. Sample 1040ez However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? . Sample 1040ez 5) I am a U. Sample 1040ez S. Sample 1040ez citizen and have no taxable income from the United States, but I have substantial income from a foreign source. Sample 1040ez Am I required to file a U. Sample 1040ez S. Sample 1040ez income tax return? . Sample 1040ez 6) I am a U. Sample 1040ez S. Sample 1040ez citizen who has retired, and I expect to remain in a foreign country. Sample 1040ez Do I have any further U. Sample 1040ez S. Sample 1040ez tax obligations? . Sample 1040ez 7) I have been a bona fide resident of a foreign country for over 5 years. Sample 1040ez Is it necessary for me to pay estimated tax? . Sample 1040ez 8) Will a check payable in foreign currency be acceptable in payment of my U. Sample 1040ez S. Sample 1040ez tax? . Sample 1040ez 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. Sample 1040ez Must I file a separate Form 2555 (or Form 2555-EZ) with each return? . Sample 1040ez 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? . Sample 1040ez 11) On Form 2350, Application for Extension of Time To File U. Sample 1040ez S. Sample 1040ez Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. Sample 1040ez If I qualify under the bona fide residence test, can I file my return on that basis? . Sample 1040ez 12) I am a U. Sample 1040ez S. Sample 1040ez citizen who worked in the United States for 6 months last year. Sample 1040ez I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. Sample 1040ez Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? . Sample 1040ez 13) I am a U. Sample 1040ez S. Sample 1040ez citizen. Sample 1040ez I have lived abroad for a number of years and recently realized that I should have been filing U. Sample 1040ez S. Sample 1040ez income tax returns. Sample 1040ez How do I correct this oversight in not having filed returns for these years? . Sample 1040ez 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. Sample 1040ez I paid all outstanding taxes with the return. Sample 1040ez Can I file a claim for refund now? . Sample 1040ez 1) When are U. Sample 1040ez S. Sample 1040ez income tax returns due? Generally, for calendar year taxpayers, U. Sample 1040ez S. Sample 1040ez income tax returns are due on April 15. Sample 1040ez If you are a U. Sample 1040ez S. Sample 1040ez citizen or resident and both your tax home and your abode are outside the United States and Puerto Rico on the regular due date, an automatic extension is granted to June 15 for filing the return. Sample 1040ez Interest will be charged on any tax due, as shown on the return, from April 15. Sample 1040ez a) You should file Form 2350 by the due date of your return to request an extension of time to file. Sample 1040ez Form 2350 is a special form for those U. Sample 1040ez S. Sample 1040ez citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. Sample 1040ez b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. Sample 1040ez c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). Sample 1040ez Generally, yes. Sample 1040ez Every U. Sample 1040ez S. Sample 1040ez citizen or resident who receives income must file a U. Sample 1040ez S. Sample 1040ez income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Sample 1040ez The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Sample 1040ez If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Sample 1040ez Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Sample 1040ez You must report your worldwide income on the return. Sample 1040ez If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Sample 1040ez S. Sample 1040ez income tax. Sample 1040ez However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Sample 1040ez Yes. Sample 1040ez All U. Sample 1040ez S. Sample 1040ez citizens and resident aliens are subject to U. Sample 1040ez S. Sample 1040ez tax on their worldwide income. Sample 1040ez If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Sample 1040ez S. Sample 1040ez income tax liability for the foreign taxes paid. Sample 1040ez Form 1116 is used to figure the allowable credit. Sample 1040ez Your U. Sample 1040ez S. Sample 1040ez tax obligation on your income is the same as that of a retired person living in the United States. Sample 1040ez (See the discussion on filing requirements in chapter 1 of this publication. Sample 1040ez ) U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. Sample 1040ez How can I secure an extension of time to file my return, when should I file my return, and what forms are required? a) You should file Form 2350 by the due date of your return to request an extension of time to file. Sample 1040ez Form 2350 is a special form for those U. Sample 1040ez S. Sample 1040ez citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. Sample 1040ez b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. Sample 1040ez c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). Sample 1040ez Generally, yes. Sample 1040ez Every U. Sample 1040ez S. Sample 1040ez citizen or resident who receives income must file a U. Sample 1040ez S. Sample 1040ez income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Sample 1040ez The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Sample 1040ez If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Sample 1040ez Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Sample 1040ez You must report your worldwide income on the return. Sample 1040ez If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Sample 1040ez S. Sample 1040ez income tax. Sample 1040ez However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Sample 1040ez Yes. Sample 1040ez All U. Sample 1040ez S. Sample 1040ez citizens and resident aliens are subject to U. Sample 1040ez S. Sample 1040ez tax on their worldwide income. Sample 1040ez If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Sample 1040ez S. Sample 1040ez income tax liability for the foreign taxes paid. Sample 1040ez Form 1116 is used to figure the allowable credit. Sample 1040ez Your U. Sample 1040ez S. Sample 1040ez tax obligation on your income is the same as that of a retired person living in the United States. Sample 1040ez (See the discussion on filing requirements in chapter 1 of this publication. Sample 1040ez ) U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 3) My entire income qualifies for the foreign earned income exclusion. Sample 1040ez Must I file a tax return? Generally, yes. Sample 1040ez Every U. Sample 1040ez S. Sample 1040ez citizen or resident who receives income must file a U. Sample 1040ez S. Sample 1040ez income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Sample 1040ez The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Sample 1040ez If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Sample 1040ez Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Sample 1040ez You must report your worldwide income on the return. Sample 1040ez If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Sample 1040ez S. Sample 1040ez income tax. Sample 1040ez However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Sample 1040ez Yes. Sample 1040ez All U. Sample 1040ez S. Sample 1040ez citizens and resident aliens are subject to U. Sample 1040ez S. Sample 1040ez tax on their worldwide income. Sample 1040ez If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Sample 1040ez S. Sample 1040ez income tax liability for the foreign taxes paid. Sample 1040ez Form 1116 is used to figure the allowable credit. Sample 1040ez Your U. Sample 1040ez S. Sample 1040ez tax obligation on your income is the same as that of a retired person living in the United States. Sample 1040ez (See the discussion on filing requirements in chapter 1 of this publication. Sample 1040ez ) U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 4) I was sent abroad by my company in November of last year. Sample 1040ez I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. Sample 1040ez However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Sample 1040ez Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Sample 1040ez You must report your worldwide income on the return. Sample 1040ez If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Sample 1040ez S. Sample 1040ez income tax. Sample 1040ez However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Sample 1040ez Yes. Sample 1040ez All U. Sample 1040ez S. Sample 1040ez citizens and resident aliens are subject to U. Sample 1040ez S. Sample 1040ez tax on their worldwide income. Sample 1040ez If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Sample 1040ez S. Sample 1040ez income tax liability for the foreign taxes paid. Sample 1040ez Form 1116 is used to figure the allowable credit. Sample 1040ez Your U. Sample 1040ez S. Sample 1040ez tax obligation on your income is the same as that of a retired person living in the United States. Sample 1040ez (See the discussion on filing requirements in chapter 1 of this publication. Sample 1040ez ) U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 5) I am a U. Sample 1040ez S. Sample 1040ez citizen and have no taxable income from the United States, but I have substantial income from a foreign source. Sample 1040ez Am I required to file a U. Sample 1040ez S. Sample 1040ez income tax return? Yes. Sample 1040ez All U. Sample 1040ez S. Sample 1040ez citizens and resident aliens are subject to U. Sample 1040ez S. Sample 1040ez tax on their worldwide income. Sample 1040ez If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Sample 1040ez S. Sample 1040ez income tax liability for the foreign taxes paid. Sample 1040ez Form 1116 is used to figure the allowable credit. Sample 1040ez Your U. Sample 1040ez S. Sample 1040ez tax obligation on your income is the same as that of a retired person living in the United States. Sample 1040ez (See the discussion on filing requirements in chapter 1 of this publication. Sample 1040ez ) U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 6) I am a U. Sample 1040ez S. Sample 1040ez citizen who has retired, and I expect to remain in a foreign country. Sample 1040ez Do I have any further U. Sample 1040ez S. Sample 1040ez tax obligations? Your U. Sample 1040ez S. Sample 1040ez tax obligation on your income is the same as that of a retired person living in the United States. Sample 1040ez (See the discussion on filing requirements in chapter 1 of this publication. Sample 1040ez ) U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 7) I have been a bona fide resident of a foreign country for over 5 years. Sample 1040ez Is it necessary for me to pay estimated tax? U. Sample 1040ez S. Sample 1040ez taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Sample 1040ez See the discussion under Estimated Tax in chapter 1. Sample 1040ez Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Sample 1040ez S. Sample 1040ez taxation. Sample 1040ez Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Sample 1040ez The first installment of estimated tax is due on April 15 of the year for which the income is earned. Sample 1040ez Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 8) Will a check payable in foreign currency be acceptable in payment of my U. Sample 1040ez S. Sample 1040ez tax? Generally, only U. Sample 1040ez S. Sample 1040ez currency is acceptable for payment of income tax. Sample 1040ez However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Sample 1040ez Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. Sample 1040ez Must I file a separate Form 2555 (or Form 2555-EZ) with each return? Yes. Sample 1040ez A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Sample 1040ez No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? No. Sample 1040ez The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Sample 1040ez Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 11) On Form 2350, Application for Extension of Time To File U. Sample 1040ez S. Sample 1040ez Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. Sample 1040ez If I qualify under the bona fide residence test, can I file my return on that basis? Yes. Sample 1040ez You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Sample 1040ez You are not bound by the test indicated in the application for extension of time. Sample 1040ez You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Sample 1040ez If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Sample 1040ez No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 12) I am a U. Sample 1040ez S. Sample 1040ez citizen who worked in the United States for 6 months last year. Sample 1040ez I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. Sample 1040ez Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? No. Sample 1040ez You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Sample 1040ez After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Sample 1040ez b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Sample 1040ez This allows you to file only once and saves you from paying the tax and waiting for a refund. Sample 1040ez However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Sample 1040ez If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Sample 1040ez File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 13) I am a U. Sample 1040ez S. Sample 1040ez citizen. Sample 1040ez I have lived abroad for a number of years and recently realized that I should have been filing U. Sample 1040ez S. Sample 1040ez income tax returns. Sample 1040ez How do I correct this oversight in not having filed returns for these years? File the late returns as soon as possible, stating your reason for filing late. Sample 1040ez For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Sample 1040ez It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez . Sample 1040ez 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. Sample 1040ez I paid all outstanding taxes with the return. Sample 1040ez Can I file a claim for refund now? It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Sample 1040ez A return filed before the due date is considered filed on the due date. Sample 1040ez 2. Sample 1040ez Meeting the Requirements of Either the Bona Fide Residence Test or the Physical Presence Test . Sample 1040ez 1) I recently came to Country X to work for the Orange Tractor Co. Sample 1040ez and I expect to be here for 5 or 6 years. Sample 1040ez I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. Sample 1040ez Is this correct? . Sample 1040ez 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? . Sample 1040ez 3) To meet the qualification of an uninterrupted period which includes an entire taxable year, do I have to be physically present in a foreign country for the entire year? . Sample 1040ez 4) I am a U. Sample 1040ez S. Sample 1040ez citizen and during 2012 was a bona fide resident of Country X. Sample 1040ez On January 15, 2013, I was notified that I was to be assigned to Country Y. Sample 1040ez I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. Sample 1040ez Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. Sample 1040ez My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. Sample 1040ez Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? . Sample 1040ez 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. Sample 1040ez Can I figure the exclusion for the period I resided abroad? . Sample 1040ez 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? . Sample 1040ez 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. Sample 1040ez I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. Sample 1040ez However, I was reassigned back to the United States and left Country Z on July 1 of this year. Sample 1040ez Can I exclude any of my foreign earned income? . Sample 1040ez 1) I recently came to Country X to work for the Orange Tractor Co. Sample 1040ez and I expect to be here for 5 or 6 years. Sample 1040ez I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. Sample 1040ez Is this correct? Not necessarily. Sample 1040ez The law provides that to qualify under this test for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, a person must be a “bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year. Sample 1040ez ” If, like most U. Sample 1040ez S. Sample 1040ez citizens, you file your return on a calendar year basis, the taxable year referred to in the law would be from January 1 to December 31 of any particular year. Sample 1040ez Unless you established residence in Country X on January 1, it would be more than 1 year before you would be a bona fide resident of a foreign country. Sample 1040ez Once you have completed your qualifying period, however, you are entitled to exclude the income or to claim the housing exclusion or deduction from the date you established bona fide residence. Sample 1040ez To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. Sample 1040ez Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. Sample 1040ez To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. Sample 1040ez No. Sample 1040ez Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Sample 1040ez During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Sample 1040ez To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Sample 1040ez Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Sample 1040ez No. Sample 1040ez You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Sample 1040ez If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Sample 1040ez S. Sample 1040ez tax. Sample 1040ez Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Sample 1040ez Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Sample 1040ez No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez . Sample 1040ez 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. Sample 1040ez Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. Sample 1040ez To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. Sample 1040ez No. Sample 1040ez Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Sample 1040ez During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Sample 1040ez To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Sample 1040ez Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Sample 1040ez No. Sample 1040ez You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Sample 1040ez If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Sample 1040ez S. Sample 1040ez tax. Sample 1040ez Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Sample 1040ez Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Sample 1040ez No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez . Sample 1040ez 3) To meet the qualification of “an uninterrupted period which includes an entire taxable year,” do I have to be physically present in a foreign country for the entire year? No. Sample 1040ez Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Sample 1040ez During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Sample 1040ez To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Sample 1040ez Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Sample 1040ez No. Sample 1040ez You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Sample 1040ez If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Sample 1040ez S. Sample 1040ez tax. Sample 1040ez Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Sample 1040ez Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Sample 1040ez No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez . Sample 1040ez 4) I am a U. Sample 1040ez S. Sample 1040ez citizen and during 2012 was a bona fide resident of Country X. Sample 1040ez On January 15, 2013, I was notified that I was to be assigned to Country Y. Sample 1040ez I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. Sample 1040ez Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. Sample 1040ez My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. Sample 1040ez Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Sample 1040ez No. Sample 1040ez You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Sample 1040ez If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Sample 1040ez S. Sample 1040ez tax. Sample 1040ez Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Sample 1040ez Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Sample 1040ez No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez . Sample 1040ez 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. Sample 1040ez Can I figure the exclusion for the period I resided abroad? No. Sample 1040ez You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Sample 1040ez If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Sample 1040ez S. Sample 1040ez tax. Sample 1040ez Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Sample 1040ez Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Sample 1040ez No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez . Sample 1040ez 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Sample 1040ez Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Sample 1040ez No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez . Sample 1040ez 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. Sample 1040ez I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. Sample 1040ez However, I was reassigned back to the United States and left Country Z on July 1 of this year. Sample 1040ez Can I exclude any of my foreign earned income? No. Sample 1040ez You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Sample 1040ez 3. Sample 1040ez Foreign Earned Income . Sample 1040ez 1) I am an employee of the U. Sample 1040ez S. Sample 1040ez Government working abroad. Sample 1040ez Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? . Sample 1040ez 2) I qualify for the foreign earned income exclusion under the bona fide residence test. Sample 1040ez Does my foreign earned income include my U. Sample 1040ez S. Sample 1040ez dividends and the interest I receive on a foreign bank account? . Sample 1040ez 3) My company pays my foreign income tax on my foreign earnings. Sample 1040ez Is this taxable compensation? . Sample 1040ez 4) I live in an apartment in a foreign city for which my employer pays the rent. Sample 1040ez Should I include in my income the cost to my employer ($1,200 a month) or the fair market value of equivalent housing in the United States ($800 a month)? . Sample 1040ez 5) My U. Sample 1040ez S. Sample 1040ez employer pays my salary into my U. Sample 1040ez S. Sample 1040ez bank account. Sample 1040ez Is this income considered earned in the United States or is it considered foreign earned income? . Sample 1040ez 6) What is considered a foreign country? . Sample 1040ez 7) What is the source of earned income? . Sample 1040ez 1) I am an employee of the U. Sample 1040ez S. Sample 1040ez Government working abroad. Sample 1040ez Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? No. Sample 1040ez The foreign earned income exclusion applies to your foreign earned income. Sample 1040ez Amounts paid by the United States or its agencies to their employees are not treated, for this purpose, as foreign earned income. Sample 1040ez No. Sample 1040ez The only income that is foreign earned income is income from the performance of personal services abroad. Sample 1040ez Investment income is not earned income. Sample 1040ez However, you must include it in gross income reported on your Form 1040. Sample 1040ez Yes. Sample 1040ez The amount is compensation for services performed. Sample 1040ez The tax paid by your company should be reported on Form 1040, line 7, and on Form 2555, Part IV, line 22(f) (or on Form 2555-EZ, Part IV, line 17). Sample 1040ez You must include in income the fair market value (FMV) of the facility provided, where it is provided. Sample 1040ez This will usually be the rent your employer pays. Sample 1040ez Situations when the FMV is not included in income are discussed in chapter 4 under Exclusion of Meals and Lodging. Sample 1040ez If you performed the services to earn this salary outside the United States, your salary is considered earned abroad. Sample 1040ez It does not matter that you are paid by a U. Sample 1040ez S. Sample 1040ez employer or that your salary is deposited in a U. Sample 1040ez S. Sample 1040ez bank account in the United States. Sample 1040ez The source of salary, wages, commissions, and other personal service income is the place where you perform the services. Sample 1040ez For the purposes of the foreign earned income exclusion and the foreign housing exclusion or deduction, any territory under the sovereignty of a countr