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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Turbotax 1040x 2012

E File Taxes Free2010 Tax Forms 1040 EzFree Tax FormsFree Online State Tax Filing10 40 Ez Form 2012Free State E FilingWww Hrblock ComFile 2006 Federal Taxes FreeIrs File 2012 Taxes1040x 2011 Free FileE File Income Tax ReturnFree Tax Preparation SitesForm 1040x Instructions2010 Form 1040xFree Taxes Online Federal And State1040 Tax Form 2011H&r Block Online TaxesCan College Students File For TaxesFiling My 2012 Taxes2011 Tax Forms 1040File Federal And State Tax For FreeFiling Amended ReturnsFree 1040nr Software1040 For 20101040x Form 2013How Do You Amend Your Tax ReturnCan I Amend My Taxes Online1040x Instructions For DummiesForm 1040 Ez 2012File 2007 Tax ReturnWhere Do I Get 2012 Tax FormsHow To File Back Income TaxesH & R Block Free Tax Calculator1040 Tax FormsInstructions On How To Fill Out 1040ezIrs 2012 Tax FormsMyfreetaxes Com TucsonHow To Amend A ReturnStudent IncomeFile Taxes Free

Turbotax 1040x 2012

Turbotax 1040x 2012 8. Turbotax 1040x 2012   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. Turbotax 1040x 2012 Cash method. Turbotax 1040x 2012 Car and Truck ExpensesOffice in the home. Turbotax 1040x 2012 Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. Turbotax 1040x 2012 InsuranceHow to figure the deduction. Turbotax 1040x 2012 Interest Legal and Professional FeesTax preparation fees. Turbotax 1040x 2012 Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. Turbotax 1040x 2012 Taxi, commuter bus, and limousine. Turbotax 1040x 2012 Baggage and shipping. Turbotax 1040x 2012 Car or truck. Turbotax 1040x 2012 Meals and lodging. Turbotax 1040x 2012 Cleaning. Turbotax 1040x 2012 Telephone. Turbotax 1040x 2012 Tips. Turbotax 1040x 2012 More information. Turbotax 1040x 2012 Business Use of Your HomeExceptions to exclusive use. Turbotax 1040x 2012 Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. Turbotax 1040x 2012 These costs are known as business expenses. Turbotax 1040x 2012 These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. Turbotax 1040x 2012 To be deductible, a business expense must be both ordinary and necessary. Turbotax 1040x 2012 An ordinary expense is one that is common and accepted in your field of business. Turbotax 1040x 2012 A necessary expense is one that is helpful and appropriate for your business. Turbotax 1040x 2012 An expense does not have to be indispensable to be considered necessary. Turbotax 1040x 2012 For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. Turbotax 1040x 2012 If you have an expense that is partly for business and partly personal, separate the personal part from the business part. Turbotax 1040x 2012 The personal part is not deductible. Turbotax 1040x 2012 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. Turbotax 1040x 2012 Bad Debts If someone owes you money you cannot collect, you have a bad debt. Turbotax 1040x 2012 There are two kinds of bad debts, business bad debts and nonbusiness bad debts. Turbotax 1040x 2012 A business bad debt is generally one that comes from operating your trade or business. Turbotax 1040x 2012 You may be able to deduct business bad debts as an expense on your business tax return. Turbotax 1040x 2012 Business bad debt. Turbotax 1040x 2012   A business bad debt is a loss from the worthlessness of a debt that was either of the following. Turbotax 1040x 2012 Created or acquired in your business. Turbotax 1040x 2012 Closely related to your business when it became partly or totally worthless. Turbotax 1040x 2012 A debt is closely related to your business if your primary motive for incurring the debt is a business reason. Turbotax 1040x 2012   Business bad debts are mainly the result of credit sales to customers. Turbotax 1040x 2012 They can also be the result of loans to suppliers, clients, employees, or distributors. Turbotax 1040x 2012 Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. Turbotax 1040x 2012 If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. Turbotax 1040x 2012    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. Turbotax 1040x 2012 Accrual method. Turbotax 1040x 2012   If you use an accrual method of accounting, you normally report income as you earn it. Turbotax 1040x 2012 You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. Turbotax 1040x 2012 Cash method. Turbotax 1040x 2012   If you use the cash method of accounting, you normally report income when you receive payment. Turbotax 1040x 2012 You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information about business bad debts, see chapter 10 in Publication 535. Turbotax 1040x 2012 Nonbusiness bad debts. Turbotax 1040x 2012   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). Turbotax 1040x 2012 For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. Turbotax 1040x 2012 Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. Turbotax 1040x 2012 You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. Turbotax 1040x 2012 You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. Turbotax 1040x 2012 See Form 8936 and Form 8910 for more information. Turbotax 1040x 2012 Local transportation expenses. Turbotax 1040x 2012   Local transportation expenses include the ordinary and necessary costs of all the following. Turbotax 1040x 2012 Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Turbotax 1040x 2012 Tax home is defined later. Turbotax 1040x 2012 Visiting clients or customers. Turbotax 1040x 2012 Going to a business meeting away from your regular workplace. Turbotax 1040x 2012 Getting from your home to a temporary workplace when you have one or more regular places of work. Turbotax 1040x 2012 These temporary workplaces can be either within the area of your tax home or outside that area. Turbotax 1040x 2012 Local business transportation does not include expenses you have while traveling away from home overnight. Turbotax 1040x 2012 Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. Turbotax 1040x 2012 However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Turbotax 1040x 2012   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Turbotax 1040x 2012 It includes the entire city or general area in which your business or work is located. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 You operate a printing business out of rented office space. Turbotax 1040x 2012 You use your van to deliver completed jobs to your customers. Turbotax 1040x 2012 You can deduct the cost of round-trip transportation between your customers and your print shop. Turbotax 1040x 2012    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. Turbotax 1040x 2012 These costs are personal commuting expenses. Turbotax 1040x 2012 Office in the home. Turbotax 1040x 2012   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. Turbotax 1040x 2012 For more information, see Business Use of Your Home, later. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 You are a graphics designer. Turbotax 1040x 2012 You operate your business out of your home. Turbotax 1040x 2012 Your home qualifies as your principal place of business. Turbotax 1040x 2012 You occasionally have to drive to your clients to deliver your completed work. Turbotax 1040x 2012 You can deduct the cost of the round-trip transportation between your home and your clients. Turbotax 1040x 2012 Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. Turbotax 1040x 2012 Standard mileage rate. Turbotax 1040x 2012 Actual expenses. Turbotax 1040x 2012 Standard mileage rate. Turbotax 1040x 2012   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Turbotax 1040x 2012 For 2013, the standard mileage rate is 56. Turbotax 1040x 2012 5 cents per mile. Turbotax 1040x 2012    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. Turbotax 1040x 2012 Choosing the standard mileage rate. Turbotax 1040x 2012   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. Turbotax 1040x 2012 In later years, you can choose to use either the standard mileage rate or actual expenses. Turbotax 1040x 2012   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Turbotax 1040x 2012 Standard mileage rate not allowed. Turbotax 1040x 2012   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Turbotax 1040x 2012 Parking fees and tolls. Turbotax 1040x 2012   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Turbotax 1040x 2012 (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Turbotax 1040x 2012 ) Actual expenses. Turbotax 1040x 2012   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. Turbotax 1040x 2012    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Turbotax 1040x 2012   Actual car expenses include the costs of the following items. Turbotax 1040x 2012 Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Turbotax 1040x 2012 You can divide your expenses based on the miles driven for each purpose. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 You are the sole proprietor of a flower shop. Turbotax 1040x 2012 You drove your van 20,000 miles during the year. Turbotax 1040x 2012 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). Turbotax 1040x 2012 You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information about the rules for claiming car and truck expenses, see Publication 463. Turbotax 1040x 2012 Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. Turbotax 1040x 2012 The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Turbotax 1040x 2012 For details, see chapter 11 in Publication 535. Turbotax 1040x 2012 That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Turbotax 1040x 2012 Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Turbotax 1040x 2012 You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. Turbotax 1040x 2012 This method of deducting the cost of business property is called depreciation. Turbotax 1040x 2012 The discussion here is brief. Turbotax 1040x 2012 You will find more information about depreciation in Publication 946. Turbotax 1040x 2012 What property can be depreciated?   You can depreciate property if it meets all the following requirements. Turbotax 1040x 2012 It must be property you own. Turbotax 1040x 2012 It must be used in business or held to produce income. Turbotax 1040x 2012 You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. Turbotax 1040x 2012 It must have a useful life that extends substantially beyond the year it is placed in service. Turbotax 1040x 2012 It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Turbotax 1040x 2012 You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. Turbotax 1040x 2012 It must not be excepted property. Turbotax 1040x 2012 This includes property placed in service and disposed of in the same year. Turbotax 1040x 2012 Repairs. Turbotax 1040x 2012    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. Turbotax 1040x 2012 You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. Turbotax 1040x 2012 Depreciation method. Turbotax 1040x 2012   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). Turbotax 1040x 2012 MACRS is discussed in detail in Publication 946. Turbotax 1040x 2012 Section 179 deduction. Turbotax 1040x 2012   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Turbotax 1040x 2012 This deduction is known as the “section 179 deduction. Turbotax 1040x 2012 ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). Turbotax 1040x 2012 See IRC 179(e). Turbotax 1040x 2012   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Turbotax 1040x 2012 The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Turbotax 1040x 2012 Special rules apply to trucks and vans. Turbotax 1040x 2012 For more information, see Publication 946. Turbotax 1040x 2012 It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. Turbotax 1040x 2012    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. Turbotax 1040x 2012 For more information, see the Instructions for Form 4562 or Publication 946. Turbotax 1040x 2012 Listed property. Turbotax 1040x 2012   You must follow special rules and recordkeeping requirements when depreciating listed property. Turbotax 1040x 2012 Listed property is any of the following. Turbotax 1040x 2012 Most passenger automobiles. Turbotax 1040x 2012 Most other property used for transportation. Turbotax 1040x 2012 Any property of a type generally used for entertainment, recreation, or amusement. Turbotax 1040x 2012 Certain computers and related peripheral equipment. Turbotax 1040x 2012   For more information about listed property, see Publication 946. Turbotax 1040x 2012 Form 4562. Turbotax 1040x 2012   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. Turbotax 1040x 2012 Depreciation on property placed in service during the current tax year. Turbotax 1040x 2012 A section 179 deduction. Turbotax 1040x 2012 Depreciation on any listed property (regardless of when it was placed in service). Turbotax 1040x 2012    If you have to use Form 4562, you must file Schedule C. Turbotax 1040x 2012 You cannot use Schedule C-EZ. Turbotax 1040x 2012   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. Turbotax 1040x 2012 The pay may be in cash, property, or services. Turbotax 1040x 2012 To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. Turbotax 1040x 2012 In addition, the pay must meet both the following tests. Turbotax 1040x 2012 The pay must be reasonable. Turbotax 1040x 2012 The pay must be for services performed. Turbotax 1040x 2012 Chapter 2 in Publication 535 explains and defines these requirements. Turbotax 1040x 2012 You cannot deduct your own salary or any personal withdrawals you make from your business. Turbotax 1040x 2012 As a sole proprietor, you are not an employee of the business. Turbotax 1040x 2012 If you had employees during the year, you must use Schedule C. Turbotax 1040x 2012 You cannot use Schedule C-EZ. Turbotax 1040x 2012 Kinds of pay. Turbotax 1040x 2012   Some of the ways you may provide pay to your employees are listed below. Turbotax 1040x 2012 For an explanation of each of these items, see chapter 2 in Publication 535. Turbotax 1040x 2012 Awards. Turbotax 1040x 2012 Bonuses. Turbotax 1040x 2012 Education expenses. Turbotax 1040x 2012 Fringe benefits (discussed later). Turbotax 1040x 2012 Loans or advances you do not expect the employee to repay if they are for personal services actually performed. Turbotax 1040x 2012 Property you transfer to an employee as payment for services. Turbotax 1040x 2012 Reimbursements for employee business expenses. Turbotax 1040x 2012 Sick pay. Turbotax 1040x 2012 Vacation pay. Turbotax 1040x 2012 Fringe benefits. Turbotax 1040x 2012   A fringe benefit is a form of pay for the performance of services. Turbotax 1040x 2012 The following are examples of fringe benefits. Turbotax 1040x 2012 Benefits under qualified employee benefit programs. Turbotax 1040x 2012 Meals and lodging. Turbotax 1040x 2012 The use of a car. Turbotax 1040x 2012 Flights on airplanes. Turbotax 1040x 2012 Discounts on property or services. Turbotax 1040x 2012 Memberships in country clubs or other social clubs. Turbotax 1040x 2012 Tickets to entertainment or sporting events. Turbotax 1040x 2012   Employee benefit programs include the following. Turbotax 1040x 2012 Accident and health plans. Turbotax 1040x 2012 Adoption assistance. Turbotax 1040x 2012 Cafeteria plans. Turbotax 1040x 2012 Dependent care assistance. Turbotax 1040x 2012 Educational assistance. Turbotax 1040x 2012 Group-term life insurance coverage. Turbotax 1040x 2012 Welfare benefit funds. Turbotax 1040x 2012   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. Turbotax 1040x 2012 For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. Turbotax 1040x 2012 If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. Turbotax 1040x 2012    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. Turbotax 1040x 2012 For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Turbotax 1040x 2012 Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. Turbotax 1040x 2012 Fire, theft, flood, or similar insurance. Turbotax 1040x 2012 Credit insurance that covers losses from business bad debts. Turbotax 1040x 2012 Group hospitalization and medical insurance for employees, including long-term care insurance. Turbotax 1040x 2012 Liability insurance. Turbotax 1040x 2012 Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Turbotax 1040x 2012 Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Turbotax 1040x 2012 Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Turbotax 1040x 2012 Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Turbotax 1040x 2012 Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Turbotax 1040x 2012 If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Turbotax 1040x 2012 If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Turbotax 1040x 2012 Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. Turbotax 1040x 2012 Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Turbotax 1040x 2012 Nondeductible premiums. Turbotax 1040x 2012   You cannot deduct premiums on the following kinds of insurance. Turbotax 1040x 2012 Self-insurance reserve funds. Turbotax 1040x 2012 You cannot deduct amounts credited to a reserve set up for self-insurance. Turbotax 1040x 2012 This applies even if you cannot get business insurance coverage for certain business risks. Turbotax 1040x 2012 However, your actual losses may be deductible. Turbotax 1040x 2012 For more information, see Publication 547, Casualties, Disasters, and Thefts. Turbotax 1040x 2012 Loss of earnings. Turbotax 1040x 2012 You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. Turbotax 1040x 2012 However, see item (8) in the previous list. Turbotax 1040x 2012 Certain life insurance and annuities. Turbotax 1040x 2012 For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Turbotax 1040x 2012 You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Turbotax 1040x 2012 A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Turbotax 1040x 2012 For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Turbotax 1040x 2012 The disallowance applies without regard to whom the policy covers. Turbotax 1040x 2012 Insurance to secure a loan. Turbotax 1040x 2012 If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Turbotax 1040x 2012 Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Turbotax 1040x 2012 In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Turbotax 1040x 2012 Self-employed health insurance deduction. Turbotax 1040x 2012   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. Turbotax 1040x 2012 How to figure the deduction. Turbotax 1040x 2012   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Turbotax 1040x 2012 However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. Turbotax 1040x 2012 You have more than one source of income subject to self-employment tax. Turbotax 1040x 2012 You file Form 2555 or Form 2555-EZ (relating to foreign earned income). Turbotax 1040x 2012 You are using amounts paid for qualified long-term care insurance to figure the deduction. Turbotax 1040x 2012 Prepayment. Turbotax 1040x 2012   You cannot deduct expenses in advance, even if you pay them in advance. Turbotax 1040x 2012 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 In 2013, you signed a 3-year insurance contract. Turbotax 1040x 2012 Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Turbotax 1040x 2012 You can deduct in 2014 and 2015 the premium allocable to those years. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information about deducting insurance, see chapter 6 in Publication 535. Turbotax 1040x 2012 Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. Turbotax 1040x 2012 Interest relates to your business if you use the proceeds of the loan for a business expense. Turbotax 1040x 2012 It does not matter what type of property secures the loan. Turbotax 1040x 2012 You can deduct interest on a debt only if you meet all of the following requirements. Turbotax 1040x 2012 You are legally liable for that debt. Turbotax 1040x 2012 Both you and the lender intend that the debt be repaid. Turbotax 1040x 2012 You and the lender have a true debtor-creditor relationship. Turbotax 1040x 2012 You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. Turbotax 1040x 2012 If a loan is part business and part personal, you must divide the interest between the personal part and the business part. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 In 2013, you paid $600 interest on a car loan. Turbotax 1040x 2012 During 2013, you used the car 60% for business and 40% for personal purposes. Turbotax 1040x 2012 You are claiming actual expenses on the car. Turbotax 1040x 2012 You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. Turbotax 1040x 2012 The remaining interest of $240 is a nondeductible personal expense. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information about deducting interest, see chapter 4 in Publication 535. Turbotax 1040x 2012 That chapter explains the following items. Turbotax 1040x 2012 Interest you can deduct. Turbotax 1040x 2012 Interest you cannot deduct. Turbotax 1040x 2012 How to allocate interest between personal and business use. Turbotax 1040x 2012 When to deduct interest. Turbotax 1040x 2012 The rules for a below-market interest rate loan. Turbotax 1040x 2012 (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Turbotax 1040x 2012 ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. Turbotax 1040x 2012 However, you usually cannot deduct legal fees you pay to acquire business assets. Turbotax 1040x 2012 Add them to the basis of the property. Turbotax 1040x 2012 If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. Turbotax 1040x 2012 The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. Turbotax 1040x 2012 For more information, see Publication 529, Miscellaneous Deductions. Turbotax 1040x 2012 Tax preparation fees. Turbotax 1040x 2012   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. Turbotax 1040x 2012 You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Turbotax 1040x 2012   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. Turbotax 1040x 2012 Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. Turbotax 1040x 2012 SEP (Simplified Employee Pension) plans. Turbotax 1040x 2012 SIMPLE (Savings Incentive Match Plan for Employees) plans. Turbotax 1040x 2012 Qualified plans (including Keogh or H. Turbotax 1040x 2012 R. Turbotax 1040x 2012 10 plans). Turbotax 1040x 2012 SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. Turbotax 1040x 2012 You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. Turbotax 1040x 2012 If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. Turbotax 1040x 2012 You can also deduct trustees' fees if contributions to the plan do not cover them. Turbotax 1040x 2012 Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Turbotax 1040x 2012 You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Turbotax 1040x 2012 Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. Turbotax 1040x 2012 These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. Turbotax 1040x 2012 For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Turbotax 1040x 2012 Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. Turbotax 1040x 2012 Rent Expense Rent is any amount you pay for the use of property you do not own. Turbotax 1040x 2012 In general, you can deduct rent as a business expense only if the rent is for property you use in your business. Turbotax 1040x 2012 If you have or will receive equity in or title to the property, you cannot deduct the rent. Turbotax 1040x 2012 Unreasonable rent. Turbotax 1040x 2012   You cannot take a rental deduction for unreasonable rents. Turbotax 1040x 2012 Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Turbotax 1040x 2012 Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Turbotax 1040x 2012 Rent is not unreasonable just because it is figured as a percentage of gross receipts. Turbotax 1040x 2012   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Turbotax 1040x 2012 For a list of the other related persons, see section 267 of the Internal Revenue Code. Turbotax 1040x 2012 Rent on your home. Turbotax 1040x 2012   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Turbotax 1040x 2012 You must meet the requirements for business use of your home. Turbotax 1040x 2012 For more information, see Business Use of Your Home , later. Turbotax 1040x 2012 Rent paid in advance. Turbotax 1040x 2012   Generally, rent paid in your business is deductible in the year paid or accrued. Turbotax 1040x 2012 If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Turbotax 1040x 2012 You can deduct the rest of your payment only over the period to which it applies. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information about rent, see chapter 3 in Publication 535. Turbotax 1040x 2012 Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. Turbotax 1040x 2012 Income taxes. Turbotax 1040x 2012   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. Turbotax 1040x 2012 You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. Turbotax 1040x 2012 Do not deduct federal income tax. Turbotax 1040x 2012 Employment taxes. Turbotax 1040x 2012   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. Turbotax 1040x 2012 Employment taxes are discussed briefly in chapter 1. Turbotax 1040x 2012 You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. Turbotax 1040x 2012 Deduct these payments as taxes. Turbotax 1040x 2012 Self-employment tax. Turbotax 1040x 2012   You can deduct one-half of your self-employment tax on line 27 of Form 1040. Turbotax 1040x 2012 Self-employment tax is discussed in chapters 1 and 10. Turbotax 1040x 2012 Personal property tax. Turbotax 1040x 2012   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. Turbotax 1040x 2012   You can also deduct registration fees for the right to use property within a state or local area. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. Turbotax 1040x 2012 They had to pay $25 for their annual state license tags and $20 for their city registration sticker. Turbotax 1040x 2012 They also paid $235 in city personal property tax on the car, for a total of $280. Turbotax 1040x 2012 They are claiming their actual car expenses. Turbotax 1040x 2012 Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. Turbotax 1040x 2012 Real estate taxes. Turbotax 1040x 2012   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. Turbotax 1040x 2012 Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Turbotax 1040x 2012 The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Turbotax 1040x 2012   For more information about real estate taxes, see chapter 5 in Publication 535. Turbotax 1040x 2012 That chapter explains special rules for deducting the following items. Turbotax 1040x 2012 Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. Turbotax 1040x 2012 Real estate taxes when you buy or sell property during the year. Turbotax 1040x 2012 Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. Turbotax 1040x 2012 Sales tax. Turbotax 1040x 2012   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Turbotax 1040x 2012 If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Turbotax 1040x 2012 If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Turbotax 1040x 2012 If the property is depreciable, add the sales tax to the basis for depreciation. Turbotax 1040x 2012 For information on the basis of property, see Publication 551, Basis of Assets. Turbotax 1040x 2012    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Turbotax 1040x 2012 Do not include these taxes in gross receipts or sales. Turbotax 1040x 2012 Excise taxes. Turbotax 1040x 2012   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. Turbotax 1040x 2012 Excise taxes are discussed briefly in chapter 1. Turbotax 1040x 2012 Fuel taxes. Turbotax 1040x 2012   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. Turbotax 1040x 2012 Do not deduct these taxes as a separate item. Turbotax 1040x 2012   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Turbotax 1040x 2012 For more information, see Publication 510, Excise Taxes. Turbotax 1040x 2012 Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. Turbotax 1040x 2012 Table 8-1. Turbotax 1040x 2012 When Are Entertainment Expenses Deductible? (Note. Turbotax 1040x 2012 The following is a summary of the rules for deducting entertainment expenses. Turbotax 1040x 2012 For more details about these rules, see Publication 463. Turbotax 1040x 2012 ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Turbotax 1040x 2012 Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Turbotax 1040x 2012 An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Turbotax 1040x 2012 A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. Turbotax 1040x 2012 Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Turbotax 1040x 2012   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. Turbotax 1040x 2012 Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Turbotax 1040x 2012 You cannot deduct expenses that are lavish or extravagant under the circumstances. Turbotax 1040x 2012 You generally can deduct only 50% of your unreimbursed entertainment expenses. Turbotax 1040x 2012 Travel expenses. Turbotax 1040x 2012   These are the ordinary and necessary expenses of traveling away from home for your business. Turbotax 1040x 2012 You are traveling away from home if both the following conditions are met. Turbotax 1040x 2012 Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work. Turbotax 1040x 2012 You need to get sleep or rest to meet the demands of your work while away from home. Turbotax 1040x 2012 Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Turbotax 1040x 2012 It includes the entire city or general area in which your business is located. Turbotax 1040x 2012 See Publication 463 for more information. Turbotax 1040x 2012   The following is a brief discussion of the expenses you can deduct. Turbotax 1040x 2012 Transportation. Turbotax 1040x 2012   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. Turbotax 1040x 2012 Taxi, commuter bus, and limousine. Turbotax 1040x 2012   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. Turbotax 1040x 2012 Baggage and shipping. Turbotax 1040x 2012   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. Turbotax 1040x 2012 Car or truck. Turbotax 1040x 2012   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. Turbotax 1040x 2012 You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. Turbotax 1040x 2012 If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Turbotax 1040x 2012 Meals and lodging. Turbotax 1040x 2012   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Turbotax 1040x 2012 In most cases, you can deduct only 50% of your meal expenses. Turbotax 1040x 2012 Cleaning. Turbotax 1040x 2012   You can deduct the costs of dry cleaning and laundry while on your business trip. Turbotax 1040x 2012 Telephone. Turbotax 1040x 2012   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. Turbotax 1040x 2012 Tips. Turbotax 1040x 2012   You can deduct the tips you pay for any expense in this list. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information about travel expenses, see Publication 463. Turbotax 1040x 2012 Entertainment expenses. Turbotax 1040x 2012   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. Turbotax 1040x 2012 In most cases, you can deduct only 50% of these expenses. Turbotax 1040x 2012   The following are examples of entertainment expenses. Turbotax 1040x 2012 Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. Turbotax 1040x 2012 Providing meals, a hotel suite, or a car to business customers or their families. Turbotax 1040x 2012 To be deductible, the expenses must meet the rules listed in Table 8-1. Turbotax 1040x 2012 For details about these rules, see Publication 463. Turbotax 1040x 2012 Reimbursing your employees for expenses. Turbotax 1040x 2012   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. Turbotax 1040x 2012 The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Turbotax 1040x 2012 For details, see chapter 11 in Publication 535. Turbotax 1040x 2012 That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Turbotax 1040x 2012 Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. Turbotax 1040x 2012 Even then, your deduction may be limited. Turbotax 1040x 2012 To qualify to claim expenses for business use of your home, you must meet the following tests. Turbotax 1040x 2012 Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. Turbotax 1040x 2012 Exclusive use. Turbotax 1040x 2012   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Turbotax 1040x 2012 The area used for business can be a room or other separately identifiable space. Turbotax 1040x 2012 The space does not need to be marked off by a permanent partition. Turbotax 1040x 2012   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Turbotax 1040x 2012 Example. Turbotax 1040x 2012 You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Turbotax 1040x 2012 Your family also uses the den for recreation. Turbotax 1040x 2012 The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. Turbotax 1040x 2012 Exceptions to exclusive use. Turbotax 1040x 2012   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. Turbotax 1040x 2012 For the storage of inventory or product samples. Turbotax 1040x 2012 As a daycare facility. Turbotax 1040x 2012 For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Turbotax 1040x 2012 Regular use. Turbotax 1040x 2012   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. Turbotax 1040x 2012 You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. Turbotax 1040x 2012 Principal place of business. Turbotax 1040x 2012   You can have more than one business location, including your home, for a single trade or business. Turbotax 1040x 2012 To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. Turbotax 1040x 2012 To determine your principal place of business, you must consider all the facts and circumstances. Turbotax 1040x 2012   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Turbotax 1040x 2012 You use it exclusively and regularly for administrative or management activities of your business. Turbotax 1040x 2012 You have no other fixed location where you conduct substantial administrative or management activities of your business. Turbotax 1040x 2012   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Turbotax 1040x 2012 The relative importance of the activities performed at each location. Turbotax 1040x 2012 If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. Turbotax 1040x 2012   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Turbotax 1040x 2012 However, for other ways to qualify to deduct home office expenses, see Publication 587. Turbotax 1040x 2012 Deduction limit. Turbotax 1040x 2012   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Turbotax 1040x 2012 If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Turbotax 1040x 2012   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. Turbotax 1040x 2012 The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Turbotax 1040x 2012 The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Turbotax 1040x 2012 Do not include in (2) above your deduction for one-half of your self-employment tax. Turbotax 1040x 2012   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Turbotax 1040x 2012 New simplified method. Turbotax 1040x 2012    The IRS now provides a simplified method to determine your expenses for business use of your home. Turbotax 1040x 2012 The simplified method is an alternative to calculating and substantiating actual expenses. Turbotax 1040x 2012 In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. Turbotax 1040x 2012 The area you use to figure your deduction is limited to 300 square feet. Turbotax 1040x 2012 For more information, see the Instructions for Schedule C. Turbotax 1040x 2012 More information. Turbotax 1040x 2012   For more information on deducting expenses for the business use of your home, see Publication 587. Turbotax 1040x 2012 Other Expenses You Can Deduct You may also be able to deduct the following expenses. Turbotax 1040x 2012 See Publication 535 to find out whether you can deduct them. Turbotax 1040x 2012 Advertising. Turbotax 1040x 2012 Bank fees. Turbotax 1040x 2012 Donations to business organizations. Turbotax 1040x 2012 Education expenses. Turbotax 1040x 2012 Energy efficient commercial buildings deduction expenses. Turbotax 1040x 2012 Impairment-related expenses. Turbotax 1040x 2012 Interview expense allowances. Turbotax 1040x 2012 Licenses and regulatory fees. Turbotax 1040x 2012 Moving machinery. Turbotax 1040x 2012 Outplacement services. Turbotax 1040x 2012 Penalties and fines you pay for late performance or nonperformance of a contract. Turbotax 1040x 2012 Repairs that keep your property in a normal efficient operating condition. Turbotax 1040x 2012 Repayments of income. Turbotax 1040x 2012 Subscriptions to trade or professional publications. Turbotax 1040x 2012 Supplies and materials. Turbotax 1040x 2012 Utilities. Turbotax 1040x 2012 Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. Turbotax 1040x 2012 For more information, see Publication 535. Turbotax 1040x 2012 Bribes and kickbacks. Turbotax 1040x 2012 Charitable contributions. Turbotax 1040x 2012 Demolition expenses or losses. Turbotax 1040x 2012 Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. Turbotax 1040x 2012 Lobbying expenses. Turbotax 1040x 2012 Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. Turbotax 1040x 2012 Personal, living, and family expenses. Turbotax 1040x 2012 Political contributions. Turbotax 1040x 2012 Repairs that add to the value of your property or significantly increase its life. Turbotax 1040x 2012 Prev  Up  Next   Home   More Online Publications
Español

Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Appleton, WI

Website: Better Business Bureau

Address: Better Business Bureau
1047 N. Lynndale Dr., Suite 1A
Appleton, WI 54914

Phone Number: 920-734-4352

Madison, WI

Website: Better Business Bureau

Email: info@wisconsin.bbb.org

Address: Better Business Bureau
2702 International Lane, Suite 112
Madison, WI 53704

Phone Number: 608-268-2221

Milwaukee, WI

Website: Better Business Bureau

Email: info@wisconsin.bbb.org

Address: Better Business Bureau
10101 W. Greeenfield Ave., Suite 125
Milwaukee, WI 53214

Phone Number: 414-847-6000

Toll-free: 1-800-273-1002

The Turbotax 1040x 2012

Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income taxes on certain items of income they receive from sources within the United States. Turbotax 1040x 2012 These reduced rates and exemptions vary among countries and specific items of income. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Also see Publication 519. Turbotax 1040x 2012 Many of the individual states of the United States tax the income of their residents. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Tax treaties reduce the U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 taxes of residents of foreign countries. Turbotax 1040x 2012 With certain exceptions, they do not reduce the U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 taxes of U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 citizens or residents. Turbotax 1040x 2012 U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 citizens and residents are subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax on their worldwide income. Turbotax 1040x 2012 Treaty provisions generally are reciprocal (apply to both treaty countries); therefore, a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Foreign taxing authorities sometimes require certification from the U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 Government that an applicant filed an income tax return as a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 citizen or resident, as part of the proof of entitlement to the treaty benefits. Turbotax 1040x 2012 See Form 8802, Application for United States Residency Certification, to request a certification. Turbotax 1040x 2012 Disclosure of a treaty-based position that reduces your tax. Turbotax 1040x 2012   If you take the position that any U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax is overruled or otherwise reduced by a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 For more information, see Publication 519 and the Form 8833 instructions. Turbotax 1040x 2012   If you fail to file Form 8833, you may have to pay a $1,000 penalty. Turbotax 1040x 2012 Corporations are subject to a $10,000 penalty for each failure. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Pay for certain personal services performed in the United States. Turbotax 1040x 2012 Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time. Turbotax 1040x 2012 Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience. Turbotax 1040x 2012 Wages, salaries, and pensions paid by a foreign government. Turbotax 1040x 2012 Personal Services Income Pay for certain personal services performed in the United States is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 For this purpose, the word “day” means a day during any part of which you are physically present in the United States. Turbotax 1040x 2012 Terms defined. Turbotax 1040x 2012   Several terms appear in many of the discussions that follow. Turbotax 1040x 2012 The exact meanings of the terms are determined by the particular tax treaty under discussion; thus, the meanings vary among treaties. Turbotax 1040x 2012 The definitions that follow are, therefore, general definitions that may not give the exact meaning intended by a particular treaty. Turbotax 1040x 2012   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. Turbotax 1040x 2012   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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Austria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Bangladesh receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of Bangladesh entertainers is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 If the ship or aircraft is operated by a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise, the income is subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 If the resident of Bangladesh is a shareholder in a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 corporation, these exemptions do not apply to directors' fees received as a member of the board of directors of the U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 corporation. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax at the rate of 15%. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 residents that is not more than $5,000 (there is no dollar limit if the contractors are not U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 residents), and Do not have a regular base available in the United States for performing the services. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Income that residents of Barbados receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if the residents meet four requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days during the calendar year. Turbotax 1040x 2012 The income earned in the calendar year in the United States is not more than $5,000. Turbotax 1040x 2012 Their income is paid by or for an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 The income is not borne by a permanent establishment or regular base of the employer in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Turbotax 1040x 2012 Income that residents of Belgium receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Income that residents of Bulgaria receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 company. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if it is not more than $10,000 for the year. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident, and is not borne by a permanent establishment in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident, and The pay is not borne by a permanent establishment or fixed base that the employer has in the United States. Turbotax 1040x 2012 These exemptions do not apply to directors' fees for service on the board of directors of a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 corporation. Turbotax 1040x 2012 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). Turbotax 1040x 2012 However, income of athletes or public entertainers from China participating in a cultural exchange program agreed upon by the U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 and Chinese governments is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 Commonwealth of Independent States Income that residents of a C. Turbotax 1040x 2012 I. Turbotax 1040x 2012 S. Turbotax 1040x 2012 member receive for performing personal services in the United States is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if those residents are in the United States for no more than 183 days during the tax year. Turbotax 1040x 2012 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. Turbotax 1040x 2012 I. Turbotax 1040x 2012 S. Turbotax 1040x 2012 member or a resident of a C. Turbotax 1040x 2012 I. Turbotax 1040x 2012 S. Turbotax 1040x 2012 member is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Directors' fees received by residents of Cyprus for service on the board of directors of a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 corporation are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed only on income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of the Czech Republic receive for employment in the United States (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following three requirements are met. Turbotax 1040x 2012 The resident is present in the United States for no more than 183 days in any 12-month period. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of Czech entertainers and sportsmen is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 If the ship or aircraft is operated by a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise, the income is subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Denmark receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they are in the United States for no more than 89 days during the tax year. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet four requirements. Turbotax 1040x 2012 They are in the United States for no more than 89 days during the tax year. Turbotax 1040x 2012 They are employees of a resident of, or a permanent establishment in, Egypt. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 Their income is subject to Egyptian tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Estonia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following requirements are met. Turbotax 1040x 2012 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. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of Estonian entertainers or athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet three requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days during any 12-month period. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 Their income is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet three requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of French entertainers or sportsmen is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if their visit is principally supported by public funds of France. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if the residents meet three requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days during the calendar year. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 The income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Income of German entertainers or athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if their visit to the United States is substantially supported by public funds of Germany, its political subdivisions, or local authorities. Turbotax 1040x 2012 Greece Income that residents of Greece receive for labor or personal services (including practicing liberal and artistic professions) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 The pay, regardless of amount, is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet three requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days during the tax year. Turbotax 1040x 2012 Their income is paid by or on behalf of an employer who is not a resident of the United States. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 If the ship or aircraft is operated by a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise, the pay is subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Turbotax 1040x 2012 Income that residents of Iceland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 company. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed only on income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of India receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet three requirements. Turbotax 1040x 2012 They are present in the United States for no more than 183 days during the tax year. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of this limit, the income of Indian entertainers and athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Indonesia receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet three requirements. Turbotax 1040x 2012 They are present in the United States no more than 119 days during any consecutive 12-month period. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 The income is not borne or reimbursed by a permanent establishment the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if the individual is a member of the regular complement of the ship or aircraft. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of Indonesian entertainers and athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Ireland receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 However, amounts received for attending meetings in Ireland are not subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they are in the United States for no more than 182 days during the tax year. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet four requirements. Turbotax 1040x 2012 They are in the United States for no more than 182 days during the tax year. Turbotax 1040x 2012 They are employees of a resident of, or a permanent establishment in, Israel. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 Their income is subject to Israeli tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following requirements are met. Turbotax 1040x 2012 The residents are in the United States for no more than 183 days during the tax year. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Pay received for employment regularly exercised aboard a ship or aircraft operated by a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise is subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 contractor. Turbotax 1040x 2012 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. Turbotax 1040x 2012 There is no dollar limit for condition (3) if the contractor is from a country other than the United States. Turbotax 1040x 2012 Income that residents of Jamaica receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet four requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days during the tax year. Turbotax 1040x 2012 Their income is paid by or for an employer who is not a resident of the United States. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 Their net income received for the services is not more than $5,000 during the tax year. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 If the ship or aircraft is operated by a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise, the pay is subject to U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Directors' fees received by residents of Jamaica for services performed in the United States as members of boards of directors of U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 corporations are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Turbotax 1040x 2012 Income that residents of Japan receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If the residents have a fixed base available, they are taxed only on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Kazakhstan receive for employment in the United States (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following three requirements are met. Turbotax 1040x 2012 The resident is in the United States for no more than 183 days in any 12-month period. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if the residents meet four requirements. Turbotax 1040x 2012 They are in the United States for no more than 182 days during the tax year. Turbotax 1040x 2012 They are employees of a resident of Korea or of a permanent establishment maintained in Korea. Turbotax 1040x 2012 Their compensation is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 Their income for those services is not more than $3,000. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Latvia receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following requirements are met. Turbotax 1040x 2012 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. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of Latvian entertainers or athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed only on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Lithuania receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following requirements are met. Turbotax 1040x 2012 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. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Regardless of these limits, income of Lithuanian entertainers or athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if they do not have a fixed base regularly available to them in the United States for performing the services. Turbotax 1040x 2012 If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Luxembourg receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 enterprise. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Under that provision, business profits are exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax unless the individual has a permanent establishment in the United States. Turbotax 1040x 2012 If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. Turbotax 1040x 2012 Income that residents of Malta receive for services performed in the United States as employees (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet the following requirements. Turbotax 1040x 2012 They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. Turbotax 1040x 2012 Their income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax. Turbotax 1040x 2012 Income received by a resident of Malta for employment aboard a ship or an aircraft operated in international traffic is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the individual is a member of the regular complement of the ship or aircraft. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 If they have a fixed base available, they are taxed only on income attributable to the fixed base. Turbotax 1040x 2012 Income that residents of Mexico receive for employment in the United States (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if the following three requirements are met. Turbotax 1040x 2012 The resident is present in the United States for no more than 183 days in a 12-month period. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a resident of the United States. Turbotax 1040x 2012 The income is not borne by a permanent establishment or fixed base that the employer has in the United States. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 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. Turbotax 1040x 2012 This includes income from activities performed in the United States relating to the entertainer or athlete's reputation, such as endorsements of commercial products. Turbotax 1040x 2012 Regardless of this limit, the income of Mexican entertainers and athletes is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 tax if their visit to the United States is substantially supported by public funds of Mexico, its political subdivisions, or local authorities. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the residents meet three requirements. Turbotax 1040x 2012 They are in the United States for less than 183 days during the tax year. Turbotax 1040x 2012 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. Turbotax 1040x 2012 Their income is not borne by a permanent establishment that the employer has in the United States. Turbotax 1040x 2012 Compensation received for services performed by a member of the board of directors of a corporation does not qualify for this exemption. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the individual is a member of the regular complement of the ship or aircraft. Turbotax 1040x 2012 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. Turbotax 1040x 2012 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. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the income is not attributable to a fixed base in the United States that is regularly available for performing the services. Turbotax 1040x 2012 Income that residents of the Netherlands receive for employment in the United States (dependent personal services) is exempt from U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 income tax if the following three requirements are met. Turbotax 1040x 2012 The resident is in the United States for no more than 183 days during the tax year. Turbotax 1040x 2012 The income is paid by, or on behalf of, an employer who is not a U. Turbotax 1040x 2012 S. Turbotax 1040x 2012 resident. Turbotax 1040x 2012 The income is not borne by a permanent establishment or fixed base the employer has in the United States. Turbotax 1040x 2012 Income received by a Netherlands resident for employment as a member of the regular complement of a ship or