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Taxact 2012 Login

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Taxact 2012 Login

Taxact 2012 login Publication 901 - Main Content Table of Contents Application of Treaties Tax Exemptions Provided by TreatiesPersonal Services Income Professors, Teachers, and Researchers Students and Apprentices Wages and Pensions Paid by a Foreign Government Explanation of TablesTable 1 Table 2 Table 3 Application of Treaties The United States has income tax treaties with a number of foreign countries. Taxact 2012 login Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U. Taxact 2012 login S. Taxact 2012 login income taxes on certain items of income they receive from sources within the United States. Taxact 2012 login These reduced rates and exemptions vary among countries and specific items of income. Taxact 2012 login If there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for Form 1040NR. Taxact 2012 login Also see Publication 519. Taxact 2012 login Many of the individual states of the United States tax the income of their residents. Taxact 2012 login Therefore, you should consult the tax authorities of the state in which you live to find out if that state taxes the income of individuals and, if so, whether the tax applies to any of your income. Taxact 2012 login Tax treaties reduce the U. Taxact 2012 login S. Taxact 2012 login taxes of residents of foreign countries. Taxact 2012 login With certain exceptions, they do not reduce the U. Taxact 2012 login S. Taxact 2012 login taxes of U. Taxact 2012 login S. Taxact 2012 login citizens or residents. Taxact 2012 login U. Taxact 2012 login S. Taxact 2012 login citizens and residents are subject to U. Taxact 2012 login S. Taxact 2012 login income tax on their worldwide income. Taxact 2012 login Treaty provisions generally are reciprocal (apply to both treaty countries); therefore, a U. Taxact 2012 login S. Taxact 2012 login citizen or resident who receives income from a treaty country may refer to the tables in this publication to see if a tax treaty might affect the tax to be paid to that foreign country. Taxact 2012 login Foreign taxing authorities sometimes require certification from the U. Taxact 2012 login S. Taxact 2012 login Government that an applicant filed an income tax return as a U. Taxact 2012 login S. Taxact 2012 login citizen or resident, as part of the proof of entitlement to the treaty benefits. Taxact 2012 login See Form 8802, Application for United States Residency Certification, to request a certification. Taxact 2012 login Disclosure of a treaty-based position that reduces your tax. Taxact 2012 login   If you take the position that any U. Taxact 2012 login S. Taxact 2012 login tax is overruled or otherwise reduced by a U. Taxact 2012 login S. Taxact 2012 login treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. Taxact 2012 login If you are not required to file a return because of your treaty-based position, you must file a return anyway to report your position. Taxact 2012 login The filing of Form 8833 does not apply to a reduced rate of withholding tax on noneffectively connected income, such as dividends, interest, rents or royalties, or to a reduced rate of tax on pay received for services performed as an employee, including pensions, annuities, and social security. Taxact 2012 login For more information, see Publication 519 and the Form 8833 instructions. Taxact 2012 login   If you fail to file Form 8833, you may have to pay a $1,000 penalty. Taxact 2012 login Corporations are subject to a $10,000 penalty for each failure. Taxact 2012 login Tax Exemptions Provided by Treaties In addition to the tables in the back of this publication, this publication contains discussions of the exemptions from tax and certain other effects of the tax treaties on the following types of income. Taxact 2012 login Pay for certain personal services performed in the United States. Taxact 2012 login Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time. Taxact 2012 login Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience. Taxact 2012 login Wages, salaries, and pensions paid by a foreign government. Taxact 2012 login Personal Services Income Pay for certain personal services performed in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if you are a resident of one of the countries discussed below, if you are in the United States for a limited number of days, and if you meet certain other conditions. Taxact 2012 login For this purpose, the word “day” means a day during any part of which you are physically present in the United States. Taxact 2012 login Terms defined. Taxact 2012 login   Several terms appear in many of the discussions that follow. Taxact 2012 login The exact meanings of the terms are determined by the particular tax treaty under discussion; thus, the meanings vary among treaties. Taxact 2012 login The definitions that follow are, therefore, general definitions that may not give the exact meaning intended by a particular treaty. Taxact 2012 login   The terms fixed base and permanent establishment generally mean a fixed place of business, such as a place of management, a branch, an office, a factory, a warehouse, or a mining site, through which an enterprise carries on its business. Taxact 2012 login   The term borne by generally means having ultimate financial accounting responsibility for, or providing the monetary resources for, an expenditure or payment, even if another entity in another location actually made the expenditure or payment. Taxact 2012 login Australia Income that residents of Australia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Pay that residents of Australia receive for labor or personal services performed in the United States as employees (dependent personal services), including services as a director of a company, is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if: The residents are in the United States for no more than 183 days during the tax year, The pay is paid by, or on behalf of, an employer or company that is not a resident of the United States, and The pay is not deductible in determining the taxable income of the trade or business of the employer (or company) in the United States. Taxact 2012 login These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Australia who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Austria Income that residents of Austria receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Austria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Austria who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Income received by a resident of Austria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login Bangladesh Income that residents of Bangladesh receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, or Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Bangladesh receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to pubic entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Bangladesh who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Regardless of these limits, income of Bangladesh entertainers is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if their visit to the United States is wholly or mainly supported by public funds of Bangladesh, its political subdivisions, or local authorities. Taxact 2012 login Income received from employment as a member of the regular complement of a ship or an aircraft operated by a Bangladesh enterprise in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login If the ship or aircraft is operated by a U. Taxact 2012 login S. Taxact 2012 login enterprise, the income is subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login If the resident of Bangladesh is a shareholder in a U. Taxact 2012 login S. Taxact 2012 login corporation, these exemptions do not apply to directors' fees received as a member of the board of directors of the U. Taxact 2012 login S. Taxact 2012 login corporation. Taxact 2012 login The amount received by the shareholder that is more than the amount paid to a director that is not a shareholder is subject to U. Taxact 2012 login S. Taxact 2012 login tax at the rate of 15%. Taxact 2012 login Barbados Income that residents of Barbados receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 89 days during the tax year, Earn net income for independent services provided to U. Taxact 2012 login S. Taxact 2012 login residents that is not more than $5,000 (there is no dollar limit if the contractors are not U. Taxact 2012 login S. Taxact 2012 login residents), and Do not have a regular base available in the United States for performing the services. Taxact 2012 login If they have a regular base available in the United States but otherwise meet the conditions for exemption, they are taxed only on the income attributable to the regular base. Taxact 2012 login Income that residents of Barbados receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the residents meet four requirements. Taxact 2012 login They are in the United States for no more than 183 days during the calendar year. Taxact 2012 login The income earned in the calendar year in the United States is not more than $5,000. Taxact 2012 login Their income is paid by or for an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The income is not borne by a permanent establishment or regular base of the employer in the United States. Taxact 2012 login Income of a Barbadian resident from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login These exemptions do not apply to Barbadian resident public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $250 per day or $4,000 in the tax year, not including reimbursed expenses, from their entertainment activities in the United States. Taxact 2012 login However, the exemptions do apply regardless of these limits on gross receipts if the entertainer's visit to the United States is substantially supported by Barbadian public funds or if the entertainer's services are provided to a nonprofit organization. Taxact 2012 login Belgium Income that residents of Belgium receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Taxact 2012 login Income that residents of Belgium receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login The exemption does not apply to directors' fees and similar payments received by a resident of Belgium for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Belgium who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Income received by a resident of Belgium for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login Bulgaria Income that residents of Bulgaria receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Taxact 2012 login Under Article 5 (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. Taxact 2012 login Income that residents of Bulgaria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login The exemption does not apply to directors' fees and similar payments received by a resident of Bulgaria as a member of the board of directors of a U. Taxact 2012 login S. Taxact 2012 login company. Taxact 2012 login Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Bulgaria who earn more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Income received by a resident of Bulgaria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login Canada Income that residents of Canada receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article VII (Business Profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Taxact 2012 login Under Article V (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. Taxact 2012 login Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if it is not more than $10,000 for the year. Taxact 2012 login If the income is more than $10,000 for the year, it is exempt only if: The residents are present in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and The income is not paid by, or on behalf of, a U. Taxact 2012 login S. Taxact 2012 login resident, and is not borne by a permanent establishment in the United States. Taxact 2012 login Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Canada who derive more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the calendar year are subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login However, this article does not apply to athletes participating in team sports in leagues with regularly scheduled games in both Canada and the United States. Taxact 2012 login Pay received by a resident of Canada for employment regularly done in more than one country on a ship, aircraft, motor vehicle, or train operated by a Canadian resident is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login China, People's Republic of Income that residents of the People's Republic of China receive for personal services as independent contractors or self-employed individuals (independent personal services) that they perform during the tax year in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are present in the United States for no more than 183 days in the calendar year, and Do not have a fixed base regularly available in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Taxact 2012 login Pay received by residents of the People's Republic of China for services performed as employees (dependent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if: The residents are present in the United States for no more than 183 days in the calendar year, The pay is paid by or for an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident, and The pay is not borne by a permanent establishment or fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to directors' fees for service on the board of directors of a U. Taxact 2012 login S. Taxact 2012 login corporation. Taxact 2012 login These exemptions generally do not apply to income received as a public entertainer (such as a theater, motion picture, radio, or television artist, musician, or athlete). Taxact 2012 login However, income of athletes or public entertainers from China participating in a cultural exchange program agreed upon by the U. Taxact 2012 login S. Taxact 2012 login and Chinese governments is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Commonwealth of Independent States Income that residents of a C. Taxact 2012 login I. Taxact 2012 login S. Taxact 2012 login member receive for performing personal services in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if those residents are in the United States for no more than 183 days during the tax year. Taxact 2012 login Pay received by an employee who is a member of the regular complement of a ship or aircraft operated in international traffic by a C. Taxact 2012 login I. Taxact 2012 login S. Taxact 2012 login member or a resident of a C. Taxact 2012 login I. Taxact 2012 login S. Taxact 2012 login member is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Cyprus Income that residents of Cyprus receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are present in the United States for less than 183 days in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Taxact 2012 login Pay received by residents of Cyprus from services performed as employees (dependent personal services), including services as an officer of a corporation, is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if: The residents are in the United States for less than 183 days during the tax year, The pay is paid by or for an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident, and The pay is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. Taxact 2012 login Pay received by a Cyprus resident for performing personal services as an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of Cyprus is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login These exemptions do not apply to Cyprus resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $500 per day or $5,000 for the tax year, not including reimbursed expenses, from their entertainment activities in the United States. Taxact 2012 login Directors' fees received by residents of Cyprus for service on the board of directors of a U. Taxact 2012 login S. Taxact 2012 login corporation are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax to the extent of a reasonable fixed amount payable to all directors for each day of attendance at directors' meetings held in the United States. Taxact 2012 login Czech Republic Income that residents of the Czech Republic receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are present in the United States for no more than 183 days in any 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed only on income attributable to the fixed base. Taxact 2012 login Income that residents of the Czech Republic receive for employment in the United States (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following three requirements are met. Taxact 2012 login The resident is present in the United States for no more than 183 days in any 12-month period. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to income residents of the Czech Republic receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year. Taxact 2012 login Regardless of these limits, income of Czech entertainers and sportsmen is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if their visit to the United States is substantially supported by public funds of the Czech Republic, its political subdivisions, or local authorities, or the visit is made pursuant to a specific arrangement between the United States and the Czech Republic. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of the Czech Republic as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login Income from employment as a member of the regular complement of a ship or aircraft operated by a Czech enterprise in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login If the ship or aircraft is operated by a U. Taxact 2012 login S. Taxact 2012 login enterprise, the income is subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Denmark Income that residents of Denmark receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Denmark receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of Denmark as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, and athletes) from Denmark who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Income received by a resident of Denmark for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login Egypt Income that residents of Egypt receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they are in the United States for no more than 89 days during the tax year. Taxact 2012 login Income that residents of Egypt receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet four requirements. Taxact 2012 login They are in the United States for no more than 89 days during the tax year. Taxact 2012 login They are employees of a resident of, or a permanent establishment in, Egypt. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login Their income is subject to Egyptian tax. Taxact 2012 login This exemption does not apply to pay received by a resident of Egypt who is an employee and member of the regular complement of a ship or an aircraft operated in international traffic by a resident of the United States. Taxact 2012 login These exemptions do not apply to Egyptian resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes), who earn income for services as public entertainers if the gross amount of the income is more than $400 for each day they are in the United States performing the services. Taxact 2012 login Estonia Income that residents of Estonia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Estonia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following requirements are met. Taxact 2012 login The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of Estonia as a member of the board of directors or similar body of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a United States enterprise is subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login These exemptions do not apply to income residents of Estonia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. Taxact 2012 login Regardless of these limits, income of Estonian entertainers or athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if their visit to the United States is wholly or mainly supported by public funds of Estonia, its political subdivisions, or local authorities. Taxact 2012 login Finland Income that residents of Finland receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Finland receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet three requirements. Taxact 2012 login They are in the United States for no more than 183 days during any 12-month period. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login Their income is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. Taxact 2012 login The exemption does not apply to pay received by a resident of Finland who is an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of the United States. Taxact 2012 login These exemptions do not apply to income residents of Finland receive as public entertainers or sportsmen if the gross income, including reimbursed expenses, is more than $20,000 for their personal activities in the United States during the calendar year. Taxact 2012 login France Income that residents of France receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of France receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet three requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login Income for services performed by a resident of France as an employee and member of the regular complement of a ship or an aircraft operated in international traffic is exempt from tax in the United States. Taxact 2012 login These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, or musicians), or sportsmen from France who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Regardless of these limits, income of French entertainers or sportsmen is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if their visit is principally supported by public funds of France. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of France as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login Germany Income that residents of Germany receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Taxact 2012 login Income that residents of Germany receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the residents meet three requirements. Taxact 2012 login They are in the United States for no more than 183 days during the calendar year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login The income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login Pay received by a resident of Germany for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login The exemption does not apply to directors' fees and other similar payments received by a resident of Germany for services performed in the United States as a member of the board of directors of a company resident in the United States. Taxact 2012 login Income residents of Germany receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes is subject to U. Taxact 2012 login S. Taxact 2012 login tax if their gross receipts, including reimbursed expenses, from their entertainment activities in the United States are more than $20,000 during the calendar year. Taxact 2012 login Income of German entertainers or athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if their visit to the United States is substantially supported by public funds of Germany, its political subdivisions, or local authorities. Taxact 2012 login Greece Income that residents of Greece receive for labor or personal services (including practicing liberal and artistic professions) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they are in the United States for no more than 183 days during the tax year and the pay is not more than $10,000. Taxact 2012 login The pay, regardless of amount, is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if it is for labor or personal services performed as employees of, or under contract with, a resident of Greece or a Greek corporation or other entity of Greece, and if the residents are in the United States for no more than 183 days during the tax year. Taxact 2012 login Hungary Income that residents of Hungary receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available in the United States. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Hungary receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet three requirements. Taxact 2012 login They are in the United States for no more than 183 days during the tax year. Taxact 2012 login Their income is paid by or on behalf of an employer who is not a resident of the United States. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login Pay received by an employee who is a member of the regular complement of a ship or aircraft operated by a Hungarian enterprise in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login If the ship or aircraft is operated by a U. Taxact 2012 login S. Taxact 2012 login enterprise, the pay is subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Iceland Income that residents of Iceland receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Taxact 2012 login Income that residents of Iceland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login The exemption does not apply to directors' fees and similar payments received by a resident of Iceland as a member of the board of directors of a U. Taxact 2012 login S. Taxact 2012 login company. Taxact 2012 login Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Iceland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Income received by a resident of Iceland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login India Income that residents of India receive for performing personal services in the United States during the tax year as independent contractors or self-employed individuals (independent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are present in the United States for no more than 89 days during the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed only on income attributable to the fixed base. Taxact 2012 login Income that residents of India receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet three requirements. Taxact 2012 login They are present in the United States for no more than 183 days during the tax year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States. Taxact 2012 login The exemption does not apply to pay received by a resident of India for services performed as an employee aboard a ship or aircraft operated in international traffic by a U. Taxact 2012 login S. Taxact 2012 login enterprise. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by an Indian resident as a member of the board of directors of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login These exemptions do not apply to income residents of India receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their net income is more than $1,500 during the tax year for their entertainment activities in the United States. Taxact 2012 login Regardless of this limit, the income of Indian entertainers and athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if their visit to the United States is wholly or substantially supported from the public funds of the Indian Government, its political subdivisions, or local authorities. Taxact 2012 login Indonesia Income that residents of Indonesia receive for performing personal services as individual contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are present in the United States for no more than 119 days during any consecutive 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Taxact 2012 login Income that residents of Indonesia receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet three requirements. Taxact 2012 login They are present in the United States no more than 119 days during any consecutive 12-month period. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login The income is not borne or reimbursed by a permanent establishment the employer has in the United States. Taxact 2012 login Pay received by an individual for services performed as an employee aboard a ship or aircraft operated by an Indonesian resident in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the individual is a member of the regular complement of the ship or aircraft. Taxact 2012 login These exemptions do not apply to income residents of Indonesia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their gross receipts, including reimbursed expenses, are more than $2,000 during any consecutive 12-month period. Taxact 2012 login Regardless of these limits, income of Indonesian entertainers and athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if their visit to the United States is substantially supported or sponsored by the Indonesian Government and the Indonesian competent authority certifies that the entertainers or athletes qualify for this exemption. Taxact 2012 login Ireland Income that residents of Ireland receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Ireland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of Ireland as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login However, amounts received for attending meetings in Ireland are not subject to U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login Income received by a resident of Ireland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax. Taxact 2012 login These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Ireland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Israel Income that residents of Israel receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they are in the United States for no more than 182 days during the tax year. Taxact 2012 login Income that residents of Israel receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet four requirements. Taxact 2012 login They are in the United States for no more than 182 days during the tax year. Taxact 2012 login They are employees of a resident of, or a permanent establishment in, Israel. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login Their income is subject to Israeli tax. Taxact 2012 login The exemption does not apply to pay received by an employee for labor or personal services performed as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login These exemptions do not apply to income that residents of Israel receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes), if the gross amount of the income is more than $400 for each day they are in the United States performing the services. Taxact 2012 login Italy Income that residents of Italy receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Italy receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following requirements are met. Taxact 2012 login The residents are in the United States for no more than 183 days during the tax year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of Italy for services performed in the United States as a member of the board of directors of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Pay received for employment regularly exercised aboard a ship or aircraft operated by a U. Taxact 2012 login S. Taxact 2012 login enterprise is subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login These exemptions do not apply to income residents of Italy receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) if they are present in the United States for more than 90 days during the tax year or their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year for their entertainment activities in the United States. Taxact 2012 login Jamaica Income that residents of Jamaica receive for the performance of personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 89 days during the tax year, Do not have a fixed base regularly available to them in the United States for performing their services, and Earn net income for those services that is not more than $5,000 during the tax year if the income is from a U. Taxact 2012 login S. Taxact 2012 login contractor. Taxact 2012 login If they have a fixed base available in the United States, they are taxed only on the income that is attributable to the fixed base. Taxact 2012 login There is no dollar limit for condition (3) if the contractor is from a country other than the United States. Taxact 2012 login Income that residents of Jamaica receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet four requirements. Taxact 2012 login They are in the United States for no more than 183 days during the tax year. Taxact 2012 login Their income is paid by or for an employer who is not a resident of the United States. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login Their net income received for the services is not more than $5,000 during the tax year. Taxact 2012 login Pay received from employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a Jamaican enterprise is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login If the ship or aircraft is operated by a U. Taxact 2012 login S. Taxact 2012 login enterprise, the pay is subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login These exemptions do not apply to income that residents of Jamaica receive for performing services in the United States as entertainers, such as theater, motion picture, radio, or television artists, musicians, or athletes, if the gross receipts (excluding reimbursements for expenses) from the services are more than $400 a day or $5,000 for the tax year. Taxact 2012 login Directors' fees received by residents of Jamaica for services performed in the United States as members of boards of directors of U. Taxact 2012 login S. Taxact 2012 login corporations are exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the fees (excluding reimbursed expenses) are not more than $400 per day for each day the directors are present in the United States to perform the services. Taxact 2012 login Japan Income that residents of Japan receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (business profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Taxact 2012 login Income that residents of Japan receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login The exemption does not apply to directors' fees and similar payments received by a resident of Japan for services performed as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login The exemption does not apply to a resident of Japan who performs services as an employee aboard a ship or an aircraft operated in international traffic by a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Japan who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Kazakhstan Income that residents of Kazakhstan receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if: The residents are in the United States for no more than 183 days in any consecutive 12-month period, and The income is not attributable to a fixed base in the United States which is regularly available to the residents. Taxact 2012 login If the residents have a fixed base available, they are taxed only on the income attributable to the fixed base. Taxact 2012 login Income that residents of Kazakhstan receive for employment in the United States (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following three requirements are met. Taxact 2012 login The resident is in the United States for no more than 183 days in any 12-month period. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login Income derived by a resident of Kazakhstan from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of Kazakhstan as a member of the board of directors or similar body of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Korea, South Income that residents of South Korea receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the residents: Are in the United States for no more than 182 days during the tax year, Earn income for those services that is not more than $3,000 during the tax year, and Do not maintain a fixed base in the United States for more than 182 days during the tax year. Taxact 2012 login If they maintain a fixed base in the United States for more than 182 days, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Korea receive for labor or personal services performed in the United States as employees (dependent personal services), including pay for services performed as an officer of a corporation, is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the residents meet four requirements. Taxact 2012 login They are in the United States for no more than 182 days during the tax year. Taxact 2012 login They are employees of a resident of Korea or of a permanent establishment maintained in Korea. Taxact 2012 login Their compensation is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login Their income for those services is not more than $3,000. Taxact 2012 login Pay received by employees who are members of the regular complement of a ship or aircraft operated by a resident of Korea in international traffic is exempt. Taxact 2012 login Latvia Income that residents of Latvia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Taxact 2012 login Income that residents of Latvia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following requirements are met. Taxact 2012 login The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. Taxact 2012 login S. Taxact 2012 login enterprise. Taxact 2012 login The exemptions do not apply to directors' fees and similar payments received by a resident of Latvia as a member of the board of directors or similar body of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The exemptions do not apply to income residents of Latvia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. Taxact 2012 login Regardless of these limits, income of Latvian entertainers or athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if their visit to the United States is wholly or mainly supported by public funds of Latvia, its political subdivisions, or local authorities. Taxact 2012 login Lithuania Income that residents of Lithuania receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Taxact 2012 login Income that residents of Lithuania receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following requirements are met. Taxact 2012 login The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. Taxact 2012 login S. Taxact 2012 login enterprise. Taxact 2012 login The exemptions do not apply to directors' fees and similar payments received by a resident of Lithuania as a member of the board of directors or similar body of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The exemptions do not apply to income residents of Lithuania receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. Taxact 2012 login Regardless of these limits, income of Lithuanian entertainers or athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if their visit to the United States is wholly or mainly supported by public funds of Lithuania, its political subdivisions, or local authorities. Taxact 2012 login Luxembourg Income that residents of Luxembourg receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Taxact 2012 login If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Taxact 2012 login Income that residents of Luxembourg receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Taxact 2012 login The exemption does not apply to pay received for employment exercised continuously or predominantly aboard a ship or aircraft operated in international traffic by a U. Taxact 2012 login S. Taxact 2012 login enterprise. Taxact 2012 login The exemptions do not apply to directors' fees and similar payments received by a resident of Luxembourg for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login The exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Luxembourg who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. Taxact 2012 login Malta Income that residents of Malta receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. Taxact 2012 login Under that provision, business profits are exempt from U. Taxact 2012 login S. Taxact 2012 login income tax unless the individual has a permanent establishment in the United States. Taxact 2012 login If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Taxact 2012 login Income that residents of Malta receive for services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet the following requirements. Taxact 2012 login They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Taxact 2012 login Their income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login The exemption does not apply to directors' fees and similar payments received by a resident of Malta for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. Taxact 2012 login Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Malta who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. Taxact 2012 login S. Taxact 2012 login tax. Taxact 2012 login Income received by a resident of Malta for employment aboard a ship or an aircraft operated in international traffic is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the individual is a member of the regular complement of the ship or aircraft. Taxact 2012 login Mexico Income that residents of Mexico receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 182 days in a 12-month period, and Do not have a fixed base that they regularly use for performing the services. Taxact 2012 login If they have a fixed base available, they are taxed only on income attributable to the fixed base. Taxact 2012 login Income that residents of Mexico receive for employment in the United States (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if the following three requirements are met. Taxact 2012 login The resident is present in the United States for no more than 183 days in a 12-month period. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a resident of the United States. Taxact 2012 login The income is not borne by a permanent establishment or fixed base that the employer has in the United States. Taxact 2012 login These exemptions do not apply to directors' fees and similar payments received by a resident of Mexico for services performed outside Mexico as a director or overseer of a company that is a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login These exemptions do not apply to income residents of Mexico receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if the income, including reimbursed expenses, is more than $3,000 during the tax year for their entertainment activities in the United States. Taxact 2012 login This includes income from activities performed in the United States relating to the entertainer or athlete's reputation, such as endorsements of commercial products. Taxact 2012 login Regardless of this limit, the income of Mexican entertainers and athletes is exempt from U. Taxact 2012 login S. Taxact 2012 login tax if their visit to the United States is substantially supported by public funds of Mexico, its political subdivisions, or local authorities. Taxact 2012 login Morocco Income that residents of Morocco receive for performing personal services as independent contractors or as self-employed persons (independent personal services) in the United States during the tax year is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents: Are in the United States for no more than 182 days during the tax year, Do not maintain a fixed base in the United States for more than 89 days during the tax year, and Earn total income for those services that is not more than $5,000. Taxact 2012 login If they have a fixed base in the United States for more than 89 days, they are taxed only on the income attributable to the fixed base. Taxact 2012 login Income that residents of Morocco receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the residents meet three requirements. Taxact 2012 login They are in the United States for less than 183 days during the tax year. Taxact 2012 login They are employees of a resident of Morocco or of a permanent establishment of a resident of a country other than Morocco if the permanent establishment is located in Morocco. Taxact 2012 login Their income is not borne by a permanent establishment that the employer has in the United States. Taxact 2012 login Compensation received for services performed by a member of the board of directors of a corporation does not qualify for this exemption. Taxact 2012 login Income received by an individual for performing labor or personal services as an employee aboard a ship or an aircraft operated in international traffic by a Moroccan resident is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the individual is a member of the regular complement of the ship or aircraft. Taxact 2012 login These exemptions do not apply to income received for services performed in the United States by professional entertainers, including theater, film, radio, and television performers, musicians, and athletes, unless the services are performed by, or for the account of, a Moroccan nonprofit organization. Taxact 2012 login Netherlands Income that residents of the Netherlands receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the income is not attributable to a fixed base in the United States that is regularly available for performing the services. Taxact 2012 login Income that residents of the Netherlands receive for employment in the United States (dependent personal services) is exempt from U. Taxact 2012 login S. Taxact 2012 login income tax if the following three requirements are met. Taxact 2012 login The resident is in the United States for no more than 183 days during the tax year. Taxact 2012 login The income is paid by, or on behalf of, an employer who is not a U. Taxact 2012 login S. Taxact 2012 login resident. Taxact 2012 login The income is not borne by a permanent establishment or fixed base the employer has in the United States. Taxact 2012 login Income received by a Netherlands resident for employment as a member of the regular complement of a ship or
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The Open World Leadership Center administers the Open World program, a foreign exchange program that brings future leaders from former Soviet states to the U.S. to meet with members of congress.

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The Taxact 2012 Login

Taxact 2012 login 1. Taxact 2012 login   Bona Fide Residence Table of Contents Presence TestDays of Presence in the United States or Relevant Possession Significant Connection Tax HomeExceptions Closer ConnectionException for Year of Move Special Rules in the Year of a MoveYear of Moving to a Possession Year of Moving From a Possession Reporting a Change in Bona Fide ResidenceWho Must File Penalty for Not Filing Form 8898 In order to qualify for certain tax benefits (see chapter 3), you must be a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI for the entire tax year. Taxact 2012 login Generally, you are a bona fide resident of one of these possessions (the relevant possession) if, during the tax year, you: Meet the presence test, Do not have a tax home outside the relevant possession, and Do not have a closer connection to the United States or to a foreign country than to the relevant possession. Taxact 2012 login Special rule for members of the U. Taxact 2012 login S. Taxact 2012 login Armed Forces. Taxact 2012 login   If you are a member of the U. Taxact 2012 login S. Taxact 2012 login Armed Forces who qualified as a bona fide resident of the relevant possession in an earlier tax year, your absence from that possession during the current tax year in compliance with military orders will not affect your status as a bona fide resident. Taxact 2012 login Likewise, being in a possession solely in compliance with military orders will not qualify you for bona fide residency. Taxact 2012 login Also see the special income source rule for members of the U. Taxact 2012 login S. Taxact 2012 login Armed Forces in chapter 2, under Compensation for Labor or Personal Services . Taxact 2012 login Special rule for civilian spouse of active duty member of the U. Taxact 2012 login S. Taxact 2012 login Armed Forces. Taxact 2012 login   If you are the civilian spouse of an active duty servicemember, under Military Spouses Residency Relief Act (MSRRA) you can choose to keep your prior residence or domicile for tax purposes (tax residence) when accompanying the servicemember spouse, who is relocating under military orders, to a new military duty station in one of the 50 states, the District of Columbia, or a U. Taxact 2012 login S. Taxact 2012 login possession. Taxact 2012 login Before relocating, you and your spouse must have the same tax residence. Taxact 2012 login If you are a civilian spouse and choose to keep your prior tax residence after such relocation, the source of income for services performed (for example, wages, salaries, tips, or self-employment) by you is considered to be (the jurisdiction of) the prior tax residence. Taxact 2012 login As a result, the amount of income tax withholding (from Form(s) W-2, Wage and Tax Statement) that you are able to claim on your federal return, as well as the need to file a state or U. Taxact 2012 login S. Taxact 2012 login possession return, may be affected. Taxact 2012 login For more information, consult with state, local, or U. Taxact 2012 login S. Taxact 2012 login possession tax authorities regarding your tax obligations under MSRRA. Taxact 2012 login Presence Test If you are a U. Taxact 2012 login S. Taxact 2012 login citizen or resident alien, you will satisfy the presence test for the entire tax year if you meet one of the following conditions. Taxact 2012 login You were present in the relevant possession for at least 183 days during the tax year. Taxact 2012 login You were present in the relevant possession for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. Taxact 2012 login During each year of the 3-year period, you must be present in the relevant possession for at least 60 days. Taxact 2012 login You were present in the United States for no more than 90 days during the tax year. Taxact 2012 login You had earned income in the United States of no more than a total of $3,000 and were present for more days in the relevant possession than in the United States during the tax year. Taxact 2012 login Earned income is pay for personal services performed, such as wages, salaries, or professional fees. Taxact 2012 login You had no significant connection to the United States during the tax year. Taxact 2012 login Special rule for nonresident aliens. Taxact 2012 login   Conditions (1) through (5) above do not apply to nonresident aliens of the United States. Taxact 2012 login Instead, nonresident aliens must meet the substantial presence test discussed in chapter 1 of Publication 519. Taxact 2012 login In that discussion, substitute the name of the possession for “United States” and “U. Taxact 2012 login S. Taxact 2012 login ” wherever they appear. Taxact 2012 login Disregard the discussion in that chapter about a Closer Connection to a Foreign Country. Taxact 2012 login Days of Presence in the United States or Relevant Possession Generally, you are treated as being present in the United States or in the relevant possession on any day that you are physically present in that location at any time during the day. Taxact 2012 login Days of presence in a possession. Taxact 2012 login   You are considered to be present in the relevant possession on any of the following days. Taxact 2012 login Any day you are physically present in that possession at any time during the day. Taxact 2012 login Any day you are outside of the relevant possession in order to receive, or to accompany any of the following family members to receive, qualifying medical treatment (see Qualifying Medical Treatment , later). Taxact 2012 login Your parent. Taxact 2012 login Your spouse. Taxact 2012 login Your child, who is your son, daughter, stepson, or stepdaughter. Taxact 2012 login This includes an adopted child or child lawfully placed with you for legal adoption. Taxact 2012 login This also includes a foster child who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Taxact 2012 login Any day you are outside the relevant possession because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Taxact 2012 login   If, during a single day, you are physically present: In the United States and in the relevant possession, that day is considered a day of presence in the relevant possession; or In two possessions, that day is considered a day of presence in the possession where your tax home is located (see Tax Home , later). Taxact 2012 login Days of presence in the United States. Taxact 2012 login   You are considered to be present in the United States on any day that you are physically present in the United States at any time during the day. Taxact 2012 login However, do not count the following days as days of presence in the United States. Taxact 2012 login Any day you are temporarily present in the United States in order to receive, or to accompany a parent, spouse, or child who is receiving, qualifying medical treatment. Taxact 2012 login “Child” is defined under item 2c earlier. Taxact 2012 login “Qualifying medical treatment” is defined later. Taxact 2012 login Any day you are temporarily present in the United States because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Taxact 2012 login Any day you are in the United States for less than 24 hours when you are traveling between two places outside the United States. Taxact 2012 login Any day you are temporarily present in the United States as a professional athlete to compete in a charitable sports event (defined later). Taxact 2012 login Any day you are temporarily in the United States as a student (defined later). Taxact 2012 login Any day you are in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Taxact 2012 login Qualifying Medical Treatment Such treatment is generally provided by (or under the supervision of) a physician for an illness, injury, impairment, or physical or mental condition. Taxact 2012 login The treatment generally involves: Any period of inpatient care that requires an overnight stay in a hospital or hospice, and any period immediately before or after that inpatient care to the extent it is medically necessary, or Any temporary period of inpatient care in a residential medical care facility for medically necessary rehabilitation services. Taxact 2012 login With respect to each qualifying medical treatment, you must prepare (or obtain) and maintain documentation supporting your claim that such treatment meets the criteria to be considered days of presence in the relevant possession. Taxact 2012 login You must be able to produce this documentation within 30 days if requested by the IRS or tax administrator for the relevant possession. Taxact 2012 login You must keep the following documentation. Taxact 2012 login Records that provide: The patient's name and relationship to you (if the medical treatment is provided to a person you accompany); The name and address of the hospital, hospice, or residential medical care facility where the medical treatment was provided; The name, address, and telephone number of the physician who provided the medical treatment; The date(s) on which the medical treatment was provided; and Receipt(s) of payment for the medical treatment. Taxact 2012 login Signed certification by the providing or supervising physician that the medical treatment met the requirements for being qualified medical treatment, and setting forth: The patient's name, A reasonably detailed description of the medical treatment provided by (or under the supervision of) the physician, The dates on which the medical treatment was provided, and The medical facts that support the physician's certification and determination that the treatment was medically necessary. Taxact 2012 login Charitable Sports Event A charitable sports event is one that meets all of the following conditions. Taxact 2012 login The main purpose is to benefit a qualified charitable organization. Taxact 2012 login The entire net proceeds go to charity. Taxact 2012 login Volunteers perform substantially all the work. Taxact 2012 login In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in the charitable sports event. Taxact 2012 login You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. Taxact 2012 login Student To qualify as a student, you must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by a school described in (1) above or by a state, county, or local government agency. Taxact 2012 login The 5 calendar months do not have to be consecutive. Taxact 2012 login Full-time student. Taxact 2012 login   A full-time student is a person who is enrolled for the number of hours or courses the school considers to be full-time attendance. Taxact 2012 login However, school attendance exclusively at night is not considered full-time attendance. Taxact 2012 login School. Taxact 2012 login   The term “school” includes elementary schools, middle schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical schools. Taxact 2012 login It does not include on-the-job training courses, correspondence schools, and schools offering courses only through the Internet. Taxact 2012 login Significant Connection One way in which you can meet the presence test is to have no significant connection to the United States during the tax year. Taxact 2012 login This section looks at the factors that determine if a significant connection exists. Taxact 2012 login You are treated as having a significant connection to the United States if you: Have a permanent home in the United States, Are currently registered to vote in any political subdivision of the United States, or Have a spouse or child (see item 2c under Days of presence in a possession , earlier) who is under age 18 whose main home is in the United States, other than: A child who is in the United States because he or she is the child of divorced or legally separated parents and is living with a custodial parent under a custodial decree or multiple support agreement, or A child who is in the United States as a student. Taxact 2012 login For the purpose of determining if you have a significant connection to the United States, the term “spouse” does not include a spouse from whom you are legally separated under a decree of divorce or separate maintenance. Taxact 2012 login Permanent home. Taxact 2012 login   A permanent home generally includes an accommodation such as a house, an apartment, or a furnished room that is either owned or rented by you or your spouse. Taxact 2012 login The dwelling unit must be available at all times, continuously, not only for short stays. Taxact 2012 login Exception for rental property. Taxact 2012 login   If you or your spouse own the dwelling unit and at any time during the tax year it is rented to someone else at fair rental value, it will be considered your permanent home only if you or your spouse use that property for personal purposes for more than the greater of: 14 days, or 10% of the number of days during that tax year that the property is rented to others at a fair rental value. Taxact 2012 login   You are treated as using rental property for personal purposes on any day the property is not being rented to someone else at fair rental value for the entire day. Taxact 2012 login   A day of personal use of a dwelling unit is also any day that the unit is used by any of the following persons. Taxact 2012 login You or any other person who has an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement. Taxact 2012 login A member of your family or a member of the family of any other person who has an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Taxact 2012 login Family includes only brothers and sisters, half-brothers and half-sisters, spouses, ancestors (parents, grandparents, etc. Taxact 2012 login ), and lineal descendants (children, grandchildren, etc. Taxact 2012 login ). Taxact 2012 login Anyone under an arrangement that lets you use some other dwelling unit. Taxact 2012 login Anyone at less than a fair rental price. Taxact 2012 login   However, any day you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Taxact 2012 login Whether your property is used mainly for this purpose is determined in light of all the facts and circumstances, such as: The amount of time you devote to repair and maintenance work, How often during the tax year you perform repair and maintenance work on this property, and The presence and activities of companions. Taxact 2012 login   See Publication 527, Residential Rental Property, for more information about personal use of a dwelling unit. Taxact 2012 login Example—significant connection. Taxact 2012 login Ann Green, a U. Taxact 2012 login S. Taxact 2012 login citizen, is a sales representative for a company based in Guam. Taxact 2012 login Ann lives with her spouse and young children in their house in Guam, where she is also registered to vote. Taxact 2012 login Her business travel requires her to spend 120 days in the United States and another 120 days in foreign countries. Taxact 2012 login When traveling on business, Ann generally stays at hotels but sometimes stays with her brother, who lives in the United States. Taxact 2012 login Ann's stays are always of short duration and she asks her brother's permission to stay with him. Taxact 2012 login Her brother's house is not her permanent home, nor does she have any other accommodations in the United States that would be considered her permanent home. Taxact 2012 login Ann satisfies the presence test because she has no significant connection to the United States. Taxact 2012 login Example—presence test. Taxact 2012 login Eric and Wanda Brown live for part of the year in a condominium, which they own, in the CNMI. Taxact 2012 login They also own a house in Maine where they live for 120 days every year to be near their grown children and grandchildren. Taxact 2012 login The Browns are retired and their only income is from pension payments, dividends, interest, and social security benefits. Taxact 2012 login In 2013, they spent only 175 days in the CNMI because of a 70-day vacation to Europe and Asia. Taxact 2012 login Thus, in 2013, the Browns were not present in the CNMI for at least 183 days, were present in the United States for more than 90 days, and had a significant connection to the United States because of their permanent home. Taxact 2012 login However, the Browns still satisfied the presence test with respect to the CNMI because they had no earned income in the United States and were physically present for more days in the CNMI than in the United States. Taxact 2012 login Tax Home You will have met the tax home test if you did not have a tax home outside the relevant possession during any part of the tax year. Taxact 2012 login Your tax home is your regular or main place of business, employment, or post of duty regardless of where you maintain your family home. Taxact 2012 login If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. Taxact 2012 login If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Taxact 2012 login Exceptions There are some special rules regarding tax home that provide exceptions to the general rule stated above. Taxact 2012 login Students and Government Officials Disregard the following days when determining whether you have a tax home outside the relevant possession. Taxact 2012 login Days you were temporarily in the United States as a student (see Student under Days of Presence in the United States or Relevant Possession, earlier). Taxact 2012 login Days you were in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Taxact 2012 login Seafarers You will not be considered to have a tax home outside the relevant possession solely because you are employed on a ship or other seafaring vessel that is predominantly used in local and international waters. Taxact 2012 login For this purpose, a vessel is considered to be predominantly used in local and international waters if, during the tax year, the total amount of time it is used in international waters and in the waters within 3 miles of the relevant possession exceeds the total amount of time it is used in the territorial waters of the United States, another possession, or any foreign country. Taxact 2012 login Example. Taxact 2012 login In 2013, Sean Silverman, a U. Taxact 2012 login S. Taxact 2012 login citizen, was employed by a fishery and spent 250 days at sea on a fishing vessel. Taxact 2012 login When not at sea, Sean lived with his spouse at a house they own in American Samoa. Taxact 2012 login The fishing vessel on which Sean works departs and arrives at various ports in American Samoa, other possessions, and foreign countries, but was in international or American Samoa's local waters for 225 days. Taxact 2012 login For purposes of determining bona fide residency of American Samoa, Sean will not be considered to have a tax home outside that possession solely because of his employment on board the fishing vessel. Taxact 2012 login Year of Move If you are moving to or from a possession during the year, you may still be able to meet the tax home test for that year. Taxact 2012 login See Special Rules in the Year of a Move , later in this chapter. Taxact 2012 login Closer Connection You will have met the closer connection test if, during any part of the tax year, you do not have a closer connection to the United States or a foreign country than to the relevant U. Taxact 2012 login S. Taxact 2012 login possession. Taxact 2012 login You will be considered to have a closer connection to a possession than to the United States or to a foreign country if you have maintained more significant contacts with the possession(s) than with the United States or foreign country. Taxact 2012 login In determining if you have maintained more significant contacts with the relevant possession, the facts and circumstances to be considered include, but are not limited to, the following. Taxact 2012 login The location of your permanent home. Taxact 2012 login The location of your family. Taxact 2012 login The location of personal belongings, such as automobiles, furniture, clothing, and jewelry owned by you and your family. Taxact 2012 login The location of social, political, cultural, professional, or religious organizations with which you have a current relationship. Taxact 2012 login The location where you conduct your routine personal banking activities. Taxact 2012 login The location where you conduct business activities (other than those that go into determining your tax home). Taxact 2012 login The location of the jurisdiction in which you hold a driver's license. Taxact 2012 login The location of the jurisdiction in which you vote. Taxact 2012 login The location of charitable organizations to which you contribute. Taxact 2012 login The country of residence you designate on forms and documents. Taxact 2012 login The types of official forms and documents you file, such as Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-9, Request for Taxpayer Identification Number and Certification. Taxact 2012 login Your connections to the relevant possession will be compared to the total of your connections with the United States and foreign countries. Taxact 2012 login Your answers to the questions on Form 8898, Part III, will help establish the jurisdiction to which you have a closer connection. Taxact 2012 login Example—closer connection to the United States. Taxact 2012 login Marcos Reyes, a U. Taxact 2012 login S. Taxact 2012 login citizen, moved to Puerto Rico in 2013 to start an investment consulting and venture capital business. Taxact 2012 login His spouse and two teenage children remained in California to allow the children to complete high school. Taxact 2012 login He traveled back to the United States regularly to see his spouse and children, to engage in business activities, and to take vacations. Taxact 2012 login Marcos had an apartment available for his full-time use in Puerto Rico, but remained a joint owner of the residence in California where his spouse and children lived. Taxact 2012 login Marcos and his family had automobiles and personal belongings such as furniture, clothing, and jewelry located at both residences. Taxact 2012 login Although Marcos was a member of the Puerto Rico Chamber of Commerce, he also belonged to and had current relationships with social, political, cultural, and religious organizations in California. Taxact 2012 login Marcos received mail in California, including bank and brokerage statements and credit card bills. Taxact 2012 login He conducted his personal banking activities in California. Taxact 2012 login He held a California driver's license and was also registered to vote there. Taxact 2012 login Based on all of the particular facts and circumstances pertaining to Marcos, he was not a bona fide resident of Puerto Rico in 2013 because he had a closer connection to the United States than to Puerto Rico. Taxact 2012 login Closer connection to another possession. Taxact 2012 login   Generally, possessions are not treated as foreign countries. Taxact 2012 login Therefore, a closer connection to a possession other than the relevant possession will not be treated as a closer connection to a foreign country. Taxact 2012 login Example—tax home and closer connection to possession. Taxact 2012 login Pearl Blackmon, a U. Taxact 2012 login S. Taxact 2012 login citizen, is a permanent employee of a hotel in Guam, but works only during the tourist season. Taxact 2012 login For the remainder of each year, Pearl lives with her spouse and children in the CNMI, where she has no outside employment. Taxact 2012 login Most of Pearl's personal belongings, including her automobile, are located in the CNMI. Taxact 2012 login She is registered to vote in, and has a driver's license issued by, the CNMI. Taxact 2012 login She does her personal banking in the CNMI and routinely lists her CNMI address as her permanent address on forms and documents. Taxact 2012 login Pearl satisfies the presence test with respect to both Guam and the CNMI. Taxact 2012 login She satisfies the tax home test with respect to Guam, because her regular place of business is in Guam. Taxact 2012 login Pearl satisfies the closer connection test with respect to both Guam and the CNMI, because she does not have a closer connection to the United States or to any foreign country. Taxact 2012 login Pearl is considered a bona fide resident of Guam, the location of her tax home. Taxact 2012 login Exception for Year of Move If you are moving to or from a possession during the year, you may still be able to meet the closer connection test for that year. Taxact 2012 login See Special Rules in the Year of a Move , next. Taxact 2012 login Special Rules in the Year of a Move If you are moving to or from a possession during the year, you may still be able to meet the tax home and closer connection tests for that year. Taxact 2012 login Year of Moving to a Possession You will satisfy the tax home and closer connection tests in the tax year of changing your residence to the relevant possession if you meet all of the following. Taxact 2012 login You have not been a bona fide resident of the relevant possession in any of the 3 tax years immediately preceding your move. Taxact 2012 login In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the last 183 days of the tax year. Taxact 2012 login You are a bona fide resident of the relevant possession for each of the 3 tax years immediately following your move. Taxact 2012 login Example. Taxact 2012 login Dwight Wood, a U. Taxact 2012 login S. Taxact 2012 login citizen, files returns on a calendar year basis. Taxact 2012 login He lived in the United States from January 2007 through May 2013. Taxact 2012 login In June 2013 he moved to the USVI, purchased a house, and accepted a permanent job with a local employer. Taxact 2012 login From July 1 through December 31, 2013 (more than 183 days), Dwight's principal place of business was in the USVI and, during that time, he did not have a closer connection to the United States or a foreign country than to the USVI. Taxact 2012 login If he is a bona fide resident of the USVI during all of 2014 through 2016, he will satisfy the tax home and closer connection tests for 2013. Taxact 2012 login If Dwight also satisfies the presence test in 2013, he will be considered a bona fide resident of the USVI for the entire 2013 tax year. Taxact 2012 login Year of Moving From a Possession In the year you cease to be a bona fide resident of American Samoa, the CNMI, Guam, or the USVI, you will satisfy the tax home and closer connection tests with respect to the relevant possession if you meet all of the following. Taxact 2012 login You have been a bona fide resident of the relevant possession for each of the 3 tax years immediately preceding your change of residence. Taxact 2012 login In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the first 183 days of the tax year. Taxact 2012 login You are not a bona fide resident of the relevant possession for any of the 3 tax years immediately following your move. Taxact 2012 login Example. Taxact 2012 login Jean Aspen, a U. Taxact 2012 login S. Taxact 2012 login citizen, files returns on a calendar year basis. Taxact 2012 login From January 2010 through December 2012, Jean was a bona fide resident of American Samoa. Taxact 2012 login Jean continued to live there until September 6, 2013, when she accepted new employment and moved to Hawaii. Taxact 2012 login Jean's principal place of business from January 1 through September 5, 2013 (more than 183 days), was in American Samoa, and during that period Jean did not have a closer connection to the United States or a foreign country than to American Samoa. Taxact 2012 login If Jean continues to live and work in Hawaii for the rest of 2013 and throughout years 2014 through 2016, she will satisfy the tax home and closer connection tests for 2013 with respect to American Samoa. Taxact 2012 login If Jean also satisfies the presence test in 2013, she will be considered a bona fide resident for the entire 2013 tax year. Taxact 2012 login Puerto Rico You will be considered a bona fide resident of Puerto Rico for the part of the tax year preceding the date on which you move if you: Are a U. Taxact 2012 login S. Taxact 2012 login citizen, Are a bona fide resident of Puerto Rico for at least 2 tax years immediately preceding the tax year of the move, Cease to be a bona fide resident of Puerto Rico during the tax year, Cease to have a tax home in Puerto Rico during the tax year, and Have a closer connection to Puerto Rico than to the United States or a foreign country throughout the part of the tax year preceding the date on which you cease to have a tax home in Puerto Rico. Taxact 2012 login Example. Taxact 2012 login Randy White, a U. Taxact 2012 login S. Taxact 2012 login citizen, files returns on a calendar year basis. Taxact 2012 login For all of 2011 and 2012, Randy was a bona fide resident of Puerto Rico. Taxact 2012 login From January through April 2013, Randy continued to reside and maintain his principal place of business in and closer connection to Puerto Rico. Taxact 2012 login On May 5, 2013, Randy moved and changed his tax home to Nevada. Taxact 2012 login Later that year he established a closer connection to the United States than to Puerto Rico. Taxact 2012 login Randy did not satisfy the presence test for 2013 with respect to Puerto Rico, nor the tax home or closer connection tests. Taxact 2012 login However, because Randy was a bona fide resident of Puerto Rico for at least 2 tax years before he moved to Nevada in 2013, he was a bona fide resident of Puerto Rico from January 1 through May 4, 2013. Taxact 2012 login Reporting a Change in Bona Fide Residence If you became or ceased to be a bona fide resident of a U. Taxact 2012 login S. Taxact 2012 login possession, you may need to file Form 8898. Taxact 2012 login This applies to the U. Taxact 2012 login S. Taxact 2012 login possessions of American Samoa, the CNMI, Guam, Puerto Rico, and the USVI. Taxact 2012 login Who Must File You must file Form 8898 for the tax year in which you meet both of the following conditions. Taxact 2012 login Your worldwide gross income (defined below) in that tax year is more than $75,000. Taxact 2012 login You meet one of the following. Taxact 2012 login You take a position for U. Taxact 2012 login S. Taxact 2012 login tax purposes that you became a bona fide resident of a U. Taxact 2012 login S. Taxact 2012 login possession after a tax year for which you filed a U. Taxact 2012 login S. Taxact 2012 login income tax return as a citizen or resident alien of the United States but not as a bona fide resident of the possession. Taxact 2012 login You are a citizen or resident alien of the United States who takes the position for U. Taxact 2012 login S. Taxact 2012 login tax purposes that you ceased to be a bona fide resident of a U. Taxact 2012 login S. Taxact 2012 login possession after a tax year for which you filed an income tax return (with the IRS, the possession tax authority, or both) as a bona fide resident of the possession. Taxact 2012 login You take the position for U. Taxact 2012 login S. Taxact 2012 login tax purposes that you became a bona fide resident of Puerto Rico or American Samoa after a tax year for which you were required to file an income tax return as a bona fide resident of the CNMI, Guam, or the USVI. Taxact 2012 login Worldwide gross income. Taxact 2012 login   Worldwide gross income means all income you received in the form of money, goods, property, and services, including any income from sources outside the United States (even if you can exclude part or all of it) and before any deductions, credits, or rebates. Taxact 2012 login Example. Taxact 2012 login You are a U. Taxact 2012 login S. Taxact 2012 login citizen who moved to the CNMI in December 2012, but did not become a bona fide resident of that possession until the 2013 tax year. Taxact 2012 login You must file Form 8898 for the 2013 tax year if your worldwide gross income for that year was more than $75,000. Taxact 2012 login Penalty for Not Filing Form 8898 If you are required to file Form 8898 for any tax year and you fail to file it, you may owe a penalty of $1,000. Taxact 2012 login You may also owe this penalty if you do not include all the information required by the form or the form includes incorrect information. Taxact 2012 login In either case, you will not owe this penalty if you can show that such failure is due to reasonable cause and not willful neglect. Taxact 2012 login This is in addition to any criminal penalty that may be imposed. Taxact 2012 login Prev  Up  Next   Home   More Online Publications