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Turbotax Business Fed E File 2012

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Turbotax Business Fed E File 2012

Turbotax business fed e file 2012 17. Turbotax business fed e file 2012   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. Turbotax business fed e file 2012  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. Turbotax business fed e file 2012 If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. Turbotax business fed e file 2012 For more information, see How Much Can Be Contributed? later. Turbotax business fed e file 2012 Roth IRA contribution limit. Turbotax business fed e file 2012  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. Turbotax business fed e file 2012 If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. Turbotax business fed e file 2012 However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Turbotax business fed e file 2012 For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. Turbotax business fed e file 2012 Modified AGI limit for traditional IRA contributions increased. Turbotax business fed e file 2012  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Turbotax business fed e file 2012 If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. Turbotax business fed e file 2012 If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Turbotax business fed e file 2012 See How Much Can You Deduct , later. Turbotax business fed e file 2012 Modified AGI limit for Roth IRA contributions increased. Turbotax business fed e file 2012  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Turbotax business fed e file 2012 Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Turbotax business fed e file 2012 You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Turbotax business fed e file 2012 Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. Turbotax business fed e file 2012 You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Turbotax business fed e file 2012 Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Turbotax business fed e file 2012 You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Turbotax business fed e file 2012 See Can You Contribute to a Roth IRA , later. Turbotax business fed e file 2012 Net Investment Income Tax. Turbotax business fed e file 2012   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). Turbotax business fed e file 2012 However, these distributions are taken into account when determining the modified adjusted gross income threshold. Turbotax business fed e file 2012 Distributions from a nonqualified retirement plan are included in net investment income. Turbotax business fed e file 2012 See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. Turbotax business fed e file 2012 Name change. Turbotax business fed e file 2012  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. Turbotax business fed e file 2012 There are no changes to the rules regarding these IRAs. Turbotax business fed e file 2012 See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. Turbotax business fed e file 2012 Reminders 2014 limits. Turbotax business fed e file 2012   You can find information about the 2014 contribution and AGI limits in Publication 590. Turbotax business fed e file 2012 Contributions to both traditional and Roth IRAs. Turbotax business fed e file 2012   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. Turbotax business fed e file 2012 Statement of required minimum distribution. Turbotax business fed e file 2012  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. Turbotax business fed e file 2012 The report or offer must include the date by which the amount must be distributed. Turbotax business fed e file 2012 The report is due January 31 of the year in which the minimum distribution is required. Turbotax business fed e file 2012 It can be provided with the year-end fair market value statement that you normally get each year. Turbotax business fed e file 2012 No report is required for IRAs of owners who have died. Turbotax business fed e file 2012 IRA interest. Turbotax business fed e file 2012  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. Turbotax business fed e file 2012 Tax on your traditional IRA is generally deferred until you take a distribution. Turbotax business fed e file 2012 Do not report this interest on your tax return as tax-exempt interest. Turbotax business fed e file 2012 Form 8606. Turbotax business fed e file 2012   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. Turbotax business fed e file 2012 The term “50 or older” is used several times in this chapter. Turbotax business fed e file 2012 It refers to an IRA owner who is age 50 or older by the end of the tax year. Turbotax business fed e file 2012 Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. Turbotax business fed e file 2012 This chapter discusses the following topics. Turbotax business fed e file 2012 The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). Turbotax business fed e file 2012 The Roth IRA, which features nondeductible contributions and tax-free distributions. Turbotax business fed e file 2012 Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. Turbotax business fed e file 2012 For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. Turbotax business fed e file 2012 For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. Turbotax business fed e file 2012 Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Turbotax business fed e file 2012 ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Turbotax business fed e file 2012 Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Turbotax business fed e file 2012 Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. Turbotax business fed e file 2012 What is compensation?   Generally, compensation is what you earn from working. Turbotax business fed e file 2012 Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. Turbotax business fed e file 2012 The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Turbotax business fed e file 2012   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. Turbotax business fed e file 2012   Compensation also includes commissions and taxable alimony and separate maintenance payments. Turbotax business fed e file 2012 Self-employment income. Turbotax business fed e file 2012   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. Turbotax business fed e file 2012   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Turbotax business fed e file 2012 Nontaxable combat pay. Turbotax business fed e file 2012   For IRA purposes, if you were a member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces, your compensation includes any nontaxable combat pay you receive. Turbotax business fed e file 2012 What is not compensation?   Compensation does not include any of the following items. Turbotax business fed e file 2012 Earnings and profits from property, such as rental income, interest income, and dividend income. Turbotax business fed e file 2012 Pension or annuity income. Turbotax business fed e file 2012 Deferred compensation received (compensation payments postponed from a past year). Turbotax business fed e file 2012 Income from a partnership for which you do not provide services that are a material income-producing factor. Turbotax business fed e file 2012 Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Turbotax business fed e file 2012 Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Turbotax business fed e file 2012 When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Turbotax business fed e file 2012 However, the time for making contributions for any year is limited. Turbotax business fed e file 2012 See When Can Contributions Be Made , later. Turbotax business fed e file 2012 You can open different kinds of IRAs with a variety of organizations. Turbotax business fed e file 2012 You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Turbotax business fed e file 2012 You can also open an IRA through your stockbroker. Turbotax business fed e file 2012 Any IRA must meet Internal Revenue Code requirements. Turbotax business fed e file 2012 Kinds of traditional IRAs. Turbotax business fed e file 2012   Your traditional IRA can be an individual retirement account or annuity. Turbotax business fed e file 2012 It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Turbotax business fed e file 2012 How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Turbotax business fed e file 2012 These limits and other rules are explained below. Turbotax business fed e file 2012 Community property laws. Turbotax business fed e file 2012   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. Turbotax business fed e file 2012 This is the rule even in states with community property laws. Turbotax business fed e file 2012 Brokers' commissions. Turbotax business fed e file 2012   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Turbotax business fed e file 2012 Trustees' fees. Turbotax business fed e file 2012   Trustees' administrative fees are not subject to the contribution limit. Turbotax business fed e file 2012 Qualified reservist repayments. Turbotax business fed e file 2012   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. Turbotax business fed e file 2012 You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. Turbotax business fed e file 2012 To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. Turbotax business fed e file 2012   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Turbotax business fed e file 2012 (See Roth IRAs, later. Turbotax business fed e file 2012 ) General limit. Turbotax business fed e file 2012   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. Turbotax business fed e file 2012 $5,500 ($6,500 if you are 50 or older). Turbotax business fed e file 2012 Your taxable compensation (defined earlier) for the year. Turbotax business fed e file 2012 This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. Turbotax business fed e file 2012 (See Nondeductible Contributions , later. Turbotax business fed e file 2012 ) Qualified reservist repayments do not affect this limit. Turbotax business fed e file 2012 Example 1. Turbotax business fed e file 2012 Betty, who is 34 years old and single, earned $24,000 in 2013. Turbotax business fed e file 2012 Her IRA contributions for 2013 are limited to $5,500. Turbotax business fed e file 2012 Example 2. Turbotax business fed e file 2012 John, an unmarried college student working part time, earned $3,500 in 2013. Turbotax business fed e file 2012 His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Turbotax business fed e file 2012 Kay Bailey Hutchison Spousal IRA limit. Turbotax business fed e file 2012   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. Turbotax business fed e file 2012 $5,500 ($6,500 if you are 50 or older). Turbotax business fed e file 2012 The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Turbotax business fed e file 2012 Your spouse's IRA contribution for the year to a traditional IRA. Turbotax business fed e file 2012 Any contribution for the year to a Roth IRA on behalf of your spouse. Turbotax business fed e file 2012 This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). Turbotax business fed e file 2012 When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). Turbotax business fed e file 2012 Contributions must be in the form of money (cash, check, or money order). Turbotax business fed e file 2012 Property cannot be contributed. Turbotax business fed e file 2012 Contributions must be made by due date. Turbotax business fed e file 2012   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Turbotax business fed e file 2012 Age 70½ rule. Turbotax business fed e file 2012   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Turbotax business fed e file 2012   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Turbotax business fed e file 2012 If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Turbotax business fed e file 2012 Designating year for which contribution is made. Turbotax business fed e file 2012   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. Turbotax business fed e file 2012 If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Turbotax business fed e file 2012 Filing before a contribution is made. Turbotax business fed e file 2012   You can file your return claiming a traditional IRA contribution before the contribution is actually made. Turbotax business fed e file 2012 Generally, the contribution must be made by the due date of your return, not including extensions. Turbotax business fed e file 2012 Contributions not required. Turbotax business fed e file 2012   You do not have to contribute to your traditional IRA for every tax year, even if you can. Turbotax business fed e file 2012 How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). Turbotax business fed e file 2012 However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Turbotax business fed e file 2012 See Limit If Covered by Employer Plan , later. Turbotax business fed e file 2012 You may be able to claim a credit for contributions to your traditional IRA. Turbotax business fed e file 2012 For more information, see chapter 37. Turbotax business fed e file 2012 Trustees' fees. Turbotax business fed e file 2012   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Turbotax business fed e file 2012 However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Turbotax business fed e file 2012 See chapter 28. Turbotax business fed e file 2012 Brokers' commissions. Turbotax business fed e file 2012   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Turbotax business fed e file 2012 Full deduction. Turbotax business fed e file 2012   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). Turbotax business fed e file 2012 100% of your compensation. Turbotax business fed e file 2012 This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Turbotax business fed e file 2012 Kay Bailey Hutchison Spousal IRA. Turbotax business fed e file 2012   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. Turbotax business fed e file 2012 $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). Turbotax business fed e file 2012 The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Turbotax business fed e file 2012 The IRA deduction for the year of the spouse with the greater compensation. Turbotax business fed e file 2012 Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Turbotax business fed e file 2012 Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Turbotax business fed e file 2012 This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. Turbotax business fed e file 2012 Note. Turbotax business fed e file 2012 If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. Turbotax business fed e file 2012 After a divorce or legal separation, you can deduct only contributions to your own IRA. Turbotax business fed e file 2012 Your deductions are subject to the rules for single individuals. Turbotax business fed e file 2012 Covered by an employer retirement plan. Turbotax business fed e file 2012   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. Turbotax business fed e file 2012 This is discussed later under Limit If Covered by Employer Plan . Turbotax business fed e file 2012 Limits on the amount you can deduct do not affect the amount that can be contributed. Turbotax business fed e file 2012 See Nondeductible Contributions , later. Turbotax business fed e file 2012 Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. Turbotax business fed e file 2012 The “Retirement plan” box should be checked if you were covered. Turbotax business fed e file 2012 Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. Turbotax business fed e file 2012 If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Turbotax business fed e file 2012 Federal judges. Turbotax business fed e file 2012   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. Turbotax business fed e file 2012 For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. Turbotax business fed e file 2012 These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Turbotax business fed e file 2012 Tax year. Turbotax business fed e file 2012   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Turbotax business fed e file 2012 For almost all people, the tax year is the calendar year. Turbotax business fed e file 2012 Defined contribution plan. Turbotax business fed e file 2012   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. Turbotax business fed e file 2012   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Turbotax business fed e file 2012 Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Turbotax business fed e file 2012 Defined benefit plan. Turbotax business fed e file 2012   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. Turbotax business fed e file 2012 This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. Turbotax business fed e file 2012   A defined benefit plan is any plan that is not a defined contribution plan. Turbotax business fed e file 2012 Defined benefit plans include pension plans and annuity plans. Turbotax business fed e file 2012 No vested interest. Turbotax business fed e file 2012   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. Turbotax business fed e file 2012 Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Turbotax business fed e file 2012 Social security or railroad retirement. Turbotax business fed e file 2012   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Turbotax business fed e file 2012 Benefits from a previous employer's plan. Turbotax business fed e file 2012   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Turbotax business fed e file 2012 Reservists. Turbotax business fed e file 2012   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. Turbotax business fed e file 2012 You are not covered by the plan if both of the following conditions are met. Turbotax business fed e file 2012 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Turbotax business fed e file 2012 You did not serve more than 90 days on active duty during the year (not counting duty for training). Turbotax business fed e file 2012 Volunteer firefighters. Turbotax business fed e file 2012   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Turbotax business fed e file 2012 You are not covered by the plan if both of the following conditions are met. Turbotax business fed e file 2012 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Turbotax business fed e file 2012 Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Turbotax business fed e file 2012 Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Turbotax business fed e file 2012 Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. Turbotax business fed e file 2012 These amounts vary depending on your filing status. Turbotax business fed e file 2012 To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. Turbotax business fed e file 2012 See Filing status and Modified adjusted gross income (AGI) , later. Turbotax business fed e file 2012 Then use Table 17-1 or 17-2 to determine if the phaseout applies. Turbotax business fed e file 2012 Social security recipients. Turbotax business fed e file 2012   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. Turbotax business fed e file 2012 You received social security benefits. Turbotax business fed e file 2012 You received taxable compensation. Turbotax business fed e file 2012 Contributions were made to your traditional IRA. Turbotax business fed e file 2012 You or your spouse was covered by an employer retirement plan. Turbotax business fed e file 2012 Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Turbotax business fed e file 2012 Deduction phaseout. Turbotax business fed e file 2012   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. Turbotax business fed e file 2012 Table 17-1. Turbotax business fed e file 2012 Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Turbotax business fed e file 2012 IF your filing status is. Turbotax business fed e file 2012 . Turbotax business fed e file 2012 . Turbotax business fed e file 2012   AND your modified AGI is. Turbotax business fed e file 2012 . Turbotax business fed e file 2012 . Turbotax business fed e file 2012   THEN you can take. Turbotax business fed e file 2012 . Turbotax business fed e file 2012 . Turbotax business fed e file 2012 single   or  head of household   $59,000 or less   a full deduction. Turbotax business fed e file 2012   more than $59,000 but less than $69,000   a partial deduction. Turbotax business fed e file 2012   $69,000 or more   no deduction. Turbotax business fed e file 2012 married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. Turbotax business fed e file 2012   more than $95,000 but less than $115,000   a partial deduction. Turbotax business fed e file 2012   $115,000 or more   no deduction. Turbotax business fed e file 2012 married filing separately2   less than $10,000   a partial deduction. Turbotax business fed e file 2012   $10,000 or more   no deduction. Turbotax business fed e file 2012 1Modified AGI (adjusted gross income). Turbotax business fed e file 2012 See Modified adjusted gross income (AGI) . Turbotax business fed e file 2012 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). Turbotax business fed e file 2012 If your spouse is covered. Turbotax business fed e file 2012   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. Turbotax business fed e file 2012 Filing status. Turbotax business fed e file 2012   Your filing status depends primarily on your marital status. Turbotax business fed e file 2012 For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. Turbotax business fed e file 2012 If you need more information on filing status, see chapter 2. Turbotax business fed e file 2012 Lived apart from spouse. Turbotax business fed e file 2012   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Turbotax business fed e file 2012 Table 17-2. Turbotax business fed e file 2012 Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Turbotax business fed e file 2012 IF your filing status is. Turbotax business fed e file 2012 . Turbotax business fed e file 2012 . Turbotax business fed e file 2012   AND your modified AGI is. Turbotax business fed e file 2012 . Turbotax business fed e file 2012 . Turbotax business fed e file 2012   THEN you can take. Turbotax business fed e file 2012 . Turbotax business fed e file 2012 . Turbotax business fed e file 2012 single, head of household, or qualifying widow(er)   any amount   a full deduction. Turbotax business fed e file 2012 married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. Turbotax business fed e file 2012 married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. Turbotax business fed e file 2012   more than $178,000 but less than $188,000   a partial deduction. Turbotax business fed e file 2012   $188,000 or more   no deduction. Turbotax business fed e file 2012 married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. Turbotax business fed e file 2012   $10,000 or more   no deduction. Turbotax business fed e file 2012 1Modified AGI (adjusted gross income). Turbotax business fed e file 2012 See Modified adjusted gross income (AGI) . Turbotax business fed e file 2012 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. Turbotax business fed e file 2012 Modified adjusted gross income (AGI). Turbotax business fed e file 2012   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. Turbotax business fed e file 2012 If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. Turbotax business fed e file 2012 You may be able to use Worksheet 17-1 to figure your modified AGI. Turbotax business fed e file 2012    Do not assume that your modified AGI is the same as your compensation. Turbotax business fed e file 2012 Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. Turbotax business fed e file 2012 Form 1040. Turbotax business fed e file 2012   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. Turbotax business fed e file 2012 IRA deduction. Turbotax business fed e file 2012 Student loan interest deduction. Turbotax business fed e file 2012 Tuition and fees deduction. Turbotax business fed e file 2012 Domestic production activities deduction. Turbotax business fed e file 2012 Foreign earned income exclusion. Turbotax business fed e file 2012 Foreign housing exclusion or deduction. Turbotax business fed e file 2012 Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Savings Bonds Issued After 1989. Turbotax business fed e file 2012 Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. Turbotax business fed e file 2012 This is your modified AGI. Turbotax business fed e file 2012 Form 1040A. Turbotax business fed e file 2012   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Turbotax business fed e file 2012 IRA deduction. Turbotax business fed e file 2012 Student loan interest deduction. Turbotax business fed e file 2012 Tuition and fees deduction. Turbotax business fed e file 2012 Exclusion of qualified savings bond interest shown on Form 8815. Turbotax business fed e file 2012 This is your modified AGI. Turbotax business fed e file 2012 Both contributions for 2013 and distributions in 2013. Turbotax business fed e file 2012   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Turbotax business fed e file 2012 You received distributions in 2013 from one or more traditional IRAs. Turbotax business fed e file 2012 You made contributions to a traditional IRA for 2013. Turbotax business fed e file 2012 Some of those contributions may be nondeductible contributions. Turbotax business fed e file 2012 If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Turbotax business fed e file 2012 To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. Turbotax business fed e file 2012   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. Turbotax business fed e file 2012    How to figure your reduced IRA deduction. Turbotax business fed e file 2012   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. Turbotax business fed e file 2012 Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. Turbotax business fed e file 2012 Worksheet 17-1. Turbotax business fed e file 2012 Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. Turbotax business fed e file 2012 1. Turbotax business fed e file 2012 Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. Turbotax business fed e file 2012   2. Turbotax business fed e file 2012 Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. Turbotax business fed e file 2012   3. Turbotax business fed e file 2012 Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Turbotax business fed e file 2012   4. Turbotax business fed e file 2012 Enter any domestic production activities deduction from Form 1040, line 35 4. Turbotax business fed e file 2012   5. Turbotax business fed e file 2012 Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Turbotax business fed e file 2012   6. Turbotax business fed e file 2012 Enter any foreign housing deduction from Form 2555, line 50 6. Turbotax business fed e file 2012   7. Turbotax business fed e file 2012 Enter any excludable savings bond interest from Form 8815, line 14 7. Turbotax business fed e file 2012   8. Turbotax business fed e file 2012 Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Turbotax business fed e file 2012   9. Turbotax business fed e file 2012 Add lines 1 through 8. Turbotax business fed e file 2012 This is your Modified AGI for traditional IRA purposes 9. Turbotax business fed e file 2012   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Turbotax business fed e file 2012 If you file Form 1040A, enter your IRA deduction on line 17. Turbotax business fed e file 2012 You cannot deduct IRA contributions on Form 1040EZ. Turbotax business fed e file 2012 Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Turbotax business fed e file 2012 The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Mike is 28 years old and single. Turbotax business fed e file 2012 In 2013, he was covered by a retirement plan at work. Turbotax business fed e file 2012 His salary was $57,312. Turbotax business fed e file 2012 His modified AGI was $70,000. Turbotax business fed e file 2012 Mike made a $5,500 IRA contribution for 2013. Turbotax business fed e file 2012 Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. Turbotax business fed e file 2012 He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. Turbotax business fed e file 2012 Form 8606. Turbotax business fed e file 2012   To designate contributions as nondeductible, you must file Form 8606. Turbotax business fed e file 2012   You do not have to designate a contribution as nondeductible until you file your tax return. Turbotax business fed e file 2012 When you file, you can even designate otherwise deductible contributions as nondeductible. Turbotax business fed e file 2012   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Turbotax business fed e file 2012 A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. Turbotax business fed e file 2012 In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Turbotax business fed e file 2012 See Form 8606 under Distributions Fully or Partly Taxable, later. Turbotax business fed e file 2012 Failure to report nondeductible contributions. Turbotax business fed e file 2012   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. Turbotax business fed e file 2012 All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Turbotax business fed e file 2012 Penalty for overstatement. Turbotax business fed e file 2012   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Turbotax business fed e file 2012 Penalty for failure to file Form 8606. Turbotax business fed e file 2012   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Turbotax business fed e file 2012    Tax on earnings on nondeductible contributions. Turbotax business fed e file 2012   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. Turbotax business fed e file 2012 See When Can You Withdraw or Use IRA Assets , later. Turbotax business fed e file 2012 Cost basis. Turbotax business fed e file 2012   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Turbotax business fed e file 2012 Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Turbotax business fed e file 2012 Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. Turbotax business fed e file 2012 A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Turbotax business fed e file 2012 Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Turbotax business fed e file 2012 Inherited from spouse. Turbotax business fed e file 2012   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Turbotax business fed e file 2012 You can: Treat it as your own IRA by designating yourself as the account owner. Turbotax business fed e file 2012 Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). Turbotax business fed e file 2012 Treat yourself as the beneficiary rather than treating the IRA as your own. Turbotax business fed e file 2012 Treating it as your own. Turbotax business fed e file 2012   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. Turbotax business fed e file 2012 You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. Turbotax business fed e file 2012   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. Turbotax business fed e file 2012 Inherited from someone other than spouse. Turbotax business fed e file 2012   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. Turbotax business fed e file 2012 This means that you cannot make any contributions to the IRA. Turbotax business fed e file 2012 It also means you cannot roll over any amounts into or out of the inherited IRA. Turbotax business fed e file 2012 However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. Turbotax business fed e file 2012 For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. Turbotax business fed e file 2012 Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. Turbotax business fed e file 2012 You can make the following kinds of transfers. Turbotax business fed e file 2012 Transfers from one trustee to another. Turbotax business fed e file 2012 Rollovers. Turbotax business fed e file 2012 Transfers incident to a divorce. Turbotax business fed e file 2012 Transfers to Roth IRAs. Turbotax business fed e file 2012   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. Turbotax business fed e file 2012 You can also move assets from a qualified retirement plan to a Roth IRA. Turbotax business fed e file 2012 See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. Turbotax business fed e file 2012 Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. Turbotax business fed e file 2012 Because there is no distribution to you, the transfer is tax free. Turbotax business fed e file 2012 Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . Turbotax business fed e file 2012 For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. Turbotax business fed e file 2012 Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. Turbotax business fed e file 2012 The contribution to the second retirement plan is called a “rollover contribution. Turbotax business fed e file 2012 ” Note. Turbotax business fed e file 2012 An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. Turbotax business fed e file 2012 Kinds of rollovers to a traditional IRA. Turbotax business fed e file 2012   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). Turbotax business fed e file 2012 Treatment of rollovers. Turbotax business fed e file 2012   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . Turbotax business fed e file 2012 Kinds of rollovers from a traditional IRA. Turbotax business fed e file 2012   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. Turbotax business fed e file 2012 These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). Turbotax business fed e file 2012 The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). Turbotax business fed e file 2012 Qualified plans may, but are not required to, accept such rollovers. Turbotax business fed e file 2012 Time limit for making a rollover contribution. Turbotax business fed e file 2012   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Turbotax business fed e file 2012 The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. Turbotax business fed e file 2012 For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Extension of rollover period. Turbotax business fed e file 2012   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. Turbotax business fed e file 2012 For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 More information. Turbotax business fed e file 2012   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. Turbotax business fed e file 2012 Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. Turbotax business fed e file 2012 Waiting period between rollovers. Turbotax business fed e file 2012   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. Turbotax business fed e file 2012 You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. Turbotax business fed e file 2012   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You have two traditional IRAs, IRA-1 and IRA-2. Turbotax business fed e file 2012 You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). Turbotax business fed e file 2012 You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. Turbotax business fed e file 2012 However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. Turbotax business fed e file 2012 This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. Turbotax business fed e file 2012 Exception. Turbotax business fed e file 2012   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Partial rollovers. Turbotax business fed e file 2012   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. Turbotax business fed e file 2012 The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). Turbotax business fed e file 2012 The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . Turbotax business fed e file 2012 Required distributions. Turbotax business fed e file 2012   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. Turbotax business fed e file 2012 Inherited IRAs. Turbotax business fed e file 2012   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. Turbotax business fed e file 2012 See Treating it as your own , earlier. Turbotax business fed e file 2012 Not inherited from spouse. Turbotax business fed e file 2012   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. Turbotax business fed e file 2012 You must withdraw the IRA assets within a certain period. Turbotax business fed e file 2012 For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Reporting rollovers from IRAs. Turbotax business fed e file 2012   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. Turbotax business fed e file 2012   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. Turbotax business fed e file 2012 If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. Turbotax business fed e file 2012 If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. Turbotax business fed e file 2012 Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. Turbotax business fed e file 2012 See your tax return instructions. Turbotax business fed e file 2012   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. Turbotax business fed e file 2012 Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). Turbotax business fed e file 2012 A qualified plan is one that meets the requirements of the Internal Revenue Code. Turbotax business fed e file 2012 Eligible rollover distribution. Turbotax business fed e file 2012   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. Turbotax business fed e file 2012 A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). Turbotax business fed e file 2012 A hardship distribution. Turbotax business fed e file 2012 Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. Turbotax business fed e file 2012 Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. Turbotax business fed e file 2012 A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. Turbotax business fed e file 2012 Dividends on employer securities. Turbotax business fed e file 2012 The cost of life insurance coverage. Turbotax business fed e file 2012 Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. Turbotax business fed e file 2012 To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. Turbotax business fed e file 2012 See Form 8606 under Distributions Fully or Partly Taxable, later. Turbotax business fed e file 2012 Rollover by nonspouse beneficiary. Turbotax business fed e file 2012   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. Turbotax business fed e file 2012 The IRA is treated as an inherited IRA. Turbotax business fed e file 2012 For more information about inherited IRAs, see Inherited IRAs , earlier. Turbotax business fed e file 2012 Reporting rollovers from employer plans. Turbotax business fed e file 2012    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. Turbotax business fed e file 2012 This amount should be shown in box 1 of Form 1099-R. Turbotax business fed e file 2012 From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. Turbotax business fed e file 2012 From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. Turbotax business fed e file 2012 Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. Turbotax business fed e file 2012 Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. Turbotax business fed e file 2012 Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. Turbotax business fed e file 2012 The transfer is tax free. Turbotax business fed e file 2012 For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Converting From Any Traditional IRA to a Roth IRA Allowable conversions. Turbotax business fed e file 2012   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. Turbotax business fed e file 2012 The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. Turbotax business fed e file 2012 If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. Turbotax business fed e file 2012 However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. Turbotax business fed e file 2012 Required distributions. Turbotax business fed e file 2012   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). Turbotax business fed e file 2012 Income. Turbotax business fed e file 2012   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. Turbotax business fed e file 2012 These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. Turbotax business fed e file 2012   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. Turbotax business fed e file 2012   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. Turbotax business fed e file 2012   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Turbotax business fed e file 2012 See chapter 4. Turbotax business fed e file 2012 Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. Turbotax business fed e file 2012 This is called recharacterizing the contribution. Turbotax business fed e file 2012 See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. Turbotax business fed e file 2012 How to recharacterize a contribution. Turbotax business fed e file 2012   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. Turbotax business fed e file 2012 If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. Turbotax business fed e file 2012 If you recharacterize your contribution, you must do all three of the following. Turbotax business fed e file 2012 Include in the transfer any net income allocable to the contribution. Turbotax business fed e file 2012 If there was a loss, the net income you must transfer may be a negative amount. Turbotax business fed e file 2012 Report the recharacterization on your tax return for the year during which the contribution was made. Turbotax business fed e file 2012 Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. Turbotax business fed e file 2012 No deduction allowed. Turbotax business fed e file 2012   You cannot deduct the contribution to the first IRA. Turbotax business fed e file 2012 Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. Turbotax business fed e file 2012 Required notifications. Turbotax business fed e file 2012   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. Turbotax business fed e file 2012 You must make the notifications by the date of the transfer. Turbotax business fed e file 2012 Only one notification is required if both IRAs are maintained by the same trustee. Turbotax business fed e file 2012 The notification(s) must include all of the following information. Turbotax business fed e file 2012 The type and amount of the contribution to the first IRA that is to be recharacterized. Turbotax business fed e file 2012 The date on which the contribution was made to the first IRA and the year for which it was made. Turbotax business fed e file 2012 A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. Turbotax business fed e file 2012 The name of the trustee of the first IRA and the name of the trustee of the second IRA. Turbotax business fed e file 2012 Any additional information needed to make the transfer. Turbotax business fed e file 2012 Reporting a recharacterization. Turbotax business fed e file 2012   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. Turbotax business fed e file 2012 You must treat the contribution as having been made to the second IRA. Turbotax business fed e file 2012 When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. Turbotax business fed e file 2012 Violation of the rules generally results in additional taxes in the year of violation. Turbotax business fed e file 2012 See What Acts Result in Penalties or Additional Taxes , later. Turbotax business fed e file 2012 Contributions returned before the due date of return. Turbotax business fed e file 2012   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. Turbotax business fed e file 2012 If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. Turbotax business fed e file 2012 You can do this if, for each contribution you withdraw, both of the following conditions apply. Turbotax business fed e file 2012 You did not take a deduction for the contribution. Turbotax business fed e file 2012 You withdraw any interest or other income earned on the contribution. Turbotax business fed e file 2012 You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Turbotax business fed e file 2012 If there was a loss, the net income earned on the contribution may be a negative amount. Turbotax business fed e file 2012 Note. Turbotax business fed e file 2012 To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Earnings includible in income. Turbotax business fed e file 2012   You must include in income any earnings on the contributions you withdraw. Turbotax business fed e file 2012 Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. Turbotax business fed e file 2012 Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. Turbotax business fed e file 2012 Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. Turbotax business fed e file 2012    Early distributions tax. Turbotax business fed e file 2012   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. Turbotax business fed e file 2012 However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. Turbotax business fed e file 2012 When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. Turbotax business fed e file 2012 Eventually they must be distributed. Turbotax business fed e file 2012 If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. Turbotax business fed e file 2012 See Excess Accumulations (Insufficient Distributions) , later. Turbotax business fed e file 2012 The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. Turbotax business fed e file 2012 Required minimum distribution. Turbotax business fed e file 2012   The amount that must be distributed each year is referred to as the required minimum distribution. Turbotax business fed e file 2012 Required distributions not eligible for rollover. Turbotax business fed e file 2012   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. Turbotax business fed e file 2012 IRA owners. Turbotax business fed e file 2012   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Turbotax business fed e file 2012 April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. Turbotax business fed e file 2012 Distributions by the required beginning date. Turbotax business fed e file 2012   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). Turbotax business fed e file 2012 If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. Turbotax business fed e file 2012   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. Turbotax business fed e file 2012 Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. Turbotax business fed e file 2012 Distributions after the required beginning date. Turbotax business fed e file 2012   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. Turbotax business fed e file 2012    Beneficiaries. Turbotax business fed e file 2012   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. Turbotax business fed e file 2012 More information. Turbotax business fed e file 2012   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. Turbotax business fed e file 2012 Exceptions. Turbotax business fed e file 2012   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . Turbotax business fed e file 2012    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. Turbotax business fed e file 2012 Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Qualified charitable distributions (QCD). Turbotax business fed e file 2012   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. Turbotax business fed e file 2012 Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. Turbotax business fed e file 2012 See Qualified Charitable Distributions in Publication 590 for more information. Turbotax business fed e file 2012 Ordinary income. Turbotax business fed e file 2012   Distributions from traditional IRAs that you include in income are taxed as ordinary income. Turbotax business fed e file 2012 No special treatment. Turbotax business fed e file 2012   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. Turbotax business fed e file 2012 Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. Turbotax business fed e file 2012 Fully taxable. Turbotax business fed e file 2012   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. Turbotax business fed e file 2012 Because you have no basis in your IRA, any distributions are fully taxable when received. Turbotax business fed e file 2012 See Reporting taxable distributions on your return , later. Turbotax business fed e file 2012 Partly taxable. Turbotax business fed e file 2012    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. Turbotax business fed e file 2012 These nondeductible contributions are not taxed when they are distributed to you. Turbotax business fed e file 2012 They are a return of your investment in your IRA. Turbotax business fed e file 2012   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. Turbotax business fed e file 2012 If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Turbotax business fed e file 2012 Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. Turbotax business fed e file 2012 Form 8606. Turbotax business fed e file 2012   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. Turbotax business fed e file 2012 Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. Turbotax business fed e file 2012 Note. Turbotax business fed e file 2012 If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. Turbotax business fed e file 2012 Send it to the IRS at the time and place you would otherwise file an income tax return. Turbotax business fed e file 2012 Distributions reported on Form 1099-R. Turbotax business fed e file 2012   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Turbotax business fed e file 2012 , or a similar statement. Turbotax business fed e file 2012 IRA distributions are shown in boxes 1 and 2a of Form 1099-R. Turbotax business fed e file 2012 A number or letter code in box 7 tells you what type of distribution you received from your IRA. Turbotax business fed e file 2012 Withholding. Turbotax business fed e file 2012   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. Turbotax business fed e file 2012 See chapter 4. Turbotax business fed e file 2012 IRA distributions delivered outside the United States. Turbotax business fed e file 2012   In general, if you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. Turbotax business fed e file 2012 Reporting taxable distributions on your return. Turbotax business fed e file 2012    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). Turbotax business fed e file 2012 If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. Turbotax business fed e file 2012 You cannot report distributions on Form 1040EZ. Turbotax business fed e file 2012 What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. Turbotax business fed e file 2012 There are additions to the regular tax for using your IRA funds in prohibited transactions. Turbotax business fed e file 2012 There are also additional taxes for the following activities. Turbotax business fed e file 2012 Investing in collectibles. Turbotax business fed e file 2012 Making excess contributions. Turbotax business fed e file 2012 Taking early distributions. Turbotax business fed e file 2012 Allowing excess amounts to accumulate (failing to take required distributions). Turbotax business fed e file 2012 There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. Turbotax business fed e file 2012 Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. Turbotax business fed e file 2012 Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). Turbotax business fed e file 2012 The following are examples of prohibited transactions with a traditional IRA. Turbotax business fed e file 2012 Borrowing money from it. Turbotax business fed e file 2012 Selling property to it. Turbotax business fed e file 2012 Receiving unreasonable compensation for managing it. Turbotax business fed e file 2012 Using it as security for a loan. Turbotax business fed e file 2012 Buying property for personal use (present or future) with IRA funds. Turbotax business fed e file 2012 Effect on an IRA account. Turbotax business fed e file 2012   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. Turbotax business fed e file 2012 Effect on you or your beneficiary. Turbotax business fed e file 2012   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. Turbotax business fed e file 2012 If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. Turbotax business fed e file 2012 For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. Turbotax business fed e file 2012 The distribution may be subject to additional taxes or penalties. Turbotax business fed e file 2012 Taxes on prohibited transactions. Turbotax business fed e file 2012   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. Turbotax business fed e file 2012 In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. Turbotax business fed e file 2012 More information. Turbotax business fed e file 2012   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. Turbotax business fed e file 2012 Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. Turbotax business fed e file 2012 You may have to pay the 10% additional tax on early distributions, discussed later. Turbotax business fed e file 2012 Collectibles. Turbotax business fed e file 2012   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. Turbotax business fed e file 2012 Exception. Turbotax business fed e file 2012    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 gold coins, or one-ounce silver coins minted by the Treasury Department. Turbotax business fed e file 2012 It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. Turbotax business fed e file 2012 Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. Turbotax business fed e file 2012 For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. Turbotax business fed e file 2012 Tax on excess contributions. Turbotax business fed e file 2012   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. Turbotax business fed e file 2012 You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. Turbotax business fed e file 2012 The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. Turbotax business fed e file 2012 Excess contributions withdrawn by due date of return. Turbotax business fed e file 2012   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. Turbotax business fed e file 2012 You must complete your withdrawal by the date your tax return for that year is due, including extensions. Turbotax business fed e file 2012 How to treat withdrawn contributions. Turbotax business fed e file 2012   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. Turbotax business fed e file 2012 No deduction was allowed for the excess contribution. Turbotax business fed e file 2012 You withdraw the interest or other income earned on the excess contribution. Turbotax business fed e file 2012 You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Turbotax business fed e file 2012 If there was a loss, the net income you must withdraw may be a negative amount. Turbotax business fed e file 2012 How to treat withdrawn interest or other income. Turbotax business fed e file 2012   You must include in your gross income the interest or other income that was earned on the excess contribution. Turbotax business fed e file 2012 Report it on your return for the year in which the excess contribution was made. Turbotax business fed e file 2012 Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus
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The Turbotax Business Fed E File 2012

Turbotax business fed e file 2012 3. Turbotax business fed e file 2012   Filing Information for Individuals in Certain U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Possessions Table of Contents American SamoaWhere To Get Forms and Information Which Returns To File Special Rules for American Samoa Double Taxation The Commonwealth of Puerto RicoWhere To Get Forms and Information Which Returns To File Special Rules for Puerto Rico Double Taxation The Commonwealth of the Northern Mariana IslandsWhere To Get Forms and Information Which Return To File Special Rules for the CNMI Double Taxation GuamWhere To Get Forms and Information Which Return To File Special Rules for Guam Double Taxation The U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin IslandsWhere To Get Forms and Information Which Return To File Special Rules for the USVI Double Taxation If you have income from American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, you may have to file a tax return with the tax department of that possession. Turbotax business fed e file 2012 Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Internal Revenue Service. Turbotax business fed e file 2012 This chapter covers the general rules for filing returns in the five possessions. Turbotax business fed e file 2012 You must first determine if you are a bona fide resident of the relevant possession. Turbotax business fed e file 2012 See chapter 1 for a discussion of the requirements you must meet. Turbotax business fed e file 2012 You should ask for forms and advice about the filing of possession tax returns from that possession's tax department, not the Internal Revenue Service. Turbotax business fed e file 2012 Contact information is listed in this chapter under the heading for each possession. Turbotax business fed e file 2012 American Samoa American Samoa has its own separate and independent tax system. Turbotax business fed e file 2012 Although its tax laws are modeled on the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Internal Revenue Code, there are certain differences. Turbotax business fed e file 2012 Where To Get Forms and Information Requests for advice about matters connected with Samoan taxation should be sent to: American Samoa Government Tax Office  Executive Office Building First Floor Pago Pago, AS 96799 The phone number is (684) 633-4181. Turbotax business fed e file 2012 The fax number is (684) 633-1513. Turbotax business fed e file 2012 You can get forms and publications at www. Turbotax business fed e file 2012 americansamoa. Turbotax business fed e file 2012 gov. Turbotax business fed e file 2012 The addresses and phone numbers listed above are subject to change. Turbotax business fed e file 2012 Which Returns To File Your residency status and your source of income with regard to American Samoa determine whether you file your return and pay your tax to American Samoa, to the United States, or to both. Turbotax business fed e file 2012 In addition to the information below that is categorized by residency status, the Special Rules for American Samoa section (later) contains important information for determining the correct forms to file. Turbotax business fed e file 2012 Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax on their American Samoa source income. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 An American Samoa tax return reporting your gross income from worldwide sources. Turbotax business fed e file 2012 If you report non-American Samoa source income on your American Samoa tax return, you can claim a credit against your American Samoa tax liability for income taxes paid on that income to the United States, a foreign country, or another possession. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. Turbotax business fed e file 2012 However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government employees under Special Rules for American Samoa, later). Turbotax business fed e file 2012 To exclude American Samoa source income, attach a completed Form 4563 to your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (see Form 4563 for more information). Turbotax business fed e file 2012 If you are excluding American Samoa source income on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return, you will not be allowed any deductions from gross income or credits against tax that are directly or indirectly allocable to the exempt income. Turbotax business fed e file 2012 For more information, see Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 Nonresident alien. Turbotax business fed e file 2012   If you are a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. Turbotax business fed e file 2012 An American Samoa tax return reporting worldwide income. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040, U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Individual Income Tax Return) reporting income from worldwide sources, but excluding American Samoa source income other than amounts for services performed as an employee of the United States or any of its agencies. Turbotax business fed e file 2012 For more information, see U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government employees under Special Rules for American Samoa, later. Turbotax business fed e file 2012 To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (see Form 4563 , below, for more information). Turbotax business fed e file 2012 For all other tax purposes, however, you will be treated as a nonresident alien individual. Turbotax business fed e file 2012 For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Turbotax business fed e file 2012 There are also limitations on what deductions and credits are allowed. Turbotax business fed e file 2012 See Publication 519 for more information. Turbotax business fed e file 2012 Form 4563. Turbotax business fed e file 2012   If you must file a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return and you qualify to exclude any of your income from American Samoa, claim the exclusion by completing Form 4563 and attaching it to your Form 1040. Turbotax business fed e file 2012 Form 4563 cannot be filed by itself. Turbotax business fed e file 2012 There is an example of a filled-in Form 4563 in chapter 5. Turbotax business fed e file 2012   If you are a bona fide resident of American Samoa during the entire tax year and you are not including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 4563) to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 4563) to: Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Self-employment tax. Turbotax business fed e file 2012   If you are not required to file a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return but have income that is effectively connected with a trade or business in American Samoa, you must file Form 1040-SS with the United States. Turbotax business fed e file 2012 On this form you will report your self-employment income to the United States and, if necessary, pay self-employment tax on that income. Turbotax business fed e file 2012 Additional Medicare Tax. Turbotax business fed e file 2012   Beginning in 2013, you may be required to pay Additional Medicare Tax. Turbotax business fed e file 2012 Also, you may need to report Additional Medicare Tax withheld by your employer. Turbotax business fed e file 2012 For more information see Additional Medicare Tax under Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 Net Investment Income Tax. Turbotax business fed e file 2012   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Turbotax business fed e file 2012 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Turbotax business fed e file 2012 The NIIT will apply to a bona fide resident of American Samoa if a taxpayer has modified adjusted gross income from sources outside of American Samoa that exceeds a specified threshold amount, e. Turbotax business fed e file 2012 g. Turbotax business fed e file 2012 , $200,000 for single filers. Turbotax business fed e file 2012 The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Turbotax business fed e file 2012 See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Turbotax business fed e file 2012 Estimated tax payments. Turbotax business fed e file 2012   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES, Estimated Tax for Individuals. Turbotax business fed e file 2012   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Turbotax business fed e file 2012 irs. Turbotax business fed e file 2012 gov/e-pay. Turbotax business fed e file 2012   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Not a Bona Fide Resident of American Samoa An individual who is not a bona fide resident of American Samoa for the tax year generally files both U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 and American Samoa tax returns, and claims a foreign tax credit on the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 return for taxes paid to American Samoa. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien but not a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 An American Samoa tax return reporting only your income from sources within American Samoa. Turbotax business fed e file 2012 Wages for services performed in American Samoa, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from sources within American Samoa. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return reporting your income from worldwide sources. Turbotax business fed e file 2012 You can take a credit against your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax liability if you paid income taxes to American Samoa (or other possession or foreign country) and reported income from those sources on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return. Turbotax business fed e file 2012 De minimis exception to determining source of income. Turbotax business fed e file 2012   In certain situations you will not have income from a possession. Turbotax business fed e file 2012 See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Turbotax business fed e file 2012 Nonresident alien. Turbotax business fed e file 2012   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of American Samoa for the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 An American Samoa tax return reporting only your income from sources within American Samoa. Turbotax business fed e file 2012 In this situation, wages for services performed in American Samoa, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from sources within American Samoa. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040NR, U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Nonresident Alien Income Tax Return) reporting U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 source income according to the rules for a nonresident alien. Turbotax business fed e file 2012 See the Instructions for Form 1040NR. Turbotax business fed e file 2012   If you are not a bona fide resident of American Samoa during the entire tax year, and you are not including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to: Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. Turbotax business fed e file 2012 Civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces ), your tax residence is American Samoa, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. Turbotax business fed e file 2012 However, if your tax residence is one of the 50 states or the District of Columbia and your only income from American Samoa is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040) and a state and/or local tax return, if required. Turbotax business fed e file 2012 If you have income from American Samoa other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), contact the local tax administration for guidance. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government employees. Turbotax business fed e file 2012   If you are employed in American Samoa by the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. Turbotax business fed e file 2012 Whether you are subject to tax by American Samoa on your non-American Samoa source income depends on your status in American Samoa as a bona fide resident. Turbotax business fed e file 2012   Wages and salaries paid to employees of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government and its agencies are also subject to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 federal income tax. Turbotax business fed e file 2012 These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. Turbotax business fed e file 2012   For tax years ending after April 9, 2008, wages and salaries paid to bona fide residents by the Government of American Samoa can be excluded on the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return. Turbotax business fed e file 2012   If you report government wages on both your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 and American Samoa tax returns, you can take a credit on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return for income taxes paid or accrued to American Samoa. Turbotax business fed e file 2012 Figure the credit on Form 1116, and attach that form to your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return, Form 1040. Turbotax business fed e file 2012 Show your wages paid for services performed in American Samoa on Form 1116, line 1a, enter “American Samoa” on line g, and check box b above Part I. Turbotax business fed e file 2012 Moving expense deduction. Turbotax business fed e file 2012   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. Turbotax business fed e file 2012 Likewise, the expenses of a move back to the United States are generally attributable to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 earned income. Turbotax business fed e file 2012   If your move was to American Samoa, report your deduction for moving expenses as follows. Turbotax business fed e file 2012 If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your American Samoa tax return. Turbotax business fed e file 2012 If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax returns. Turbotax business fed e file 2012 Also, for purposes of a tax credit against your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Turbotax business fed e file 2012   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. Turbotax business fed e file 2012 Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. Turbotax business fed e file 2012 See Double Taxation in chapter 4. Turbotax business fed e file 2012 The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. Turbotax business fed e file 2012 Although it is modeled after the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 system, there are differences in law and tax rates. Turbotax business fed e file 2012 Where To Get Forms and Information Requests for information about the filing of Puerto Rico tax returns should be addressed to: Departamento de Hacienda Negociado de Asistencia Contributiva  P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. Turbotax business fed e file 2012    To obtain Puerto Rico tax forms, contact the Forms and Publications Division Office at the above address or call (787) 722-0216, option #7. Turbotax business fed e file 2012 You can access the Hacienda website at www. Turbotax business fed e file 2012 hacienda. Turbotax business fed e file 2012 gobierno. Turbotax business fed e file 2012 pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. Turbotax business fed e file 2012 gobierno. Turbotax business fed e file 2012 pr. Turbotax business fed e file 2012 The addresses and phone numbers listed above are subject to change. Turbotax business fed e file 2012 Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. Turbotax business fed e file 2012 The income reported on each return depends on your residency status in Puerto Rico. Turbotax business fed e file 2012 To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. Turbotax business fed e file 2012 Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 A Puerto Rico tax return reporting income from worldwide sources. Turbotax business fed e file 2012 If you report U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return reporting income from worldwide sources, but excluding Puerto Rico source income. Turbotax business fed e file 2012 However, see U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government employees under Special Rules for Puerto Rico, later, for an exception. Turbotax business fed e file 2012 If you are excluding Puerto Rico income on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. Turbotax business fed e file 2012 For more information, see Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 If all of your income is from Puerto Rico sources, you are not required to file a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return. Turbotax business fed e file 2012 However, if you have self-employment income, see Self-employment tax , later. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen only. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. Turbotax business fed e file 2012 In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government or its agencies) that you earned before the date you changed your residence. Turbotax business fed e file 2012 For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. Turbotax business fed e file 2012 Nonresident alien. Turbotax business fed e file 2012   If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. Turbotax business fed e file 2012 A Puerto Rico tax return reporting income from worldwide sources. Turbotax business fed e file 2012 If you report U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rico source income (other than amounts for services performed as an employee of the United States or any of its agencies). Turbotax business fed e file 2012 For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. Turbotax business fed e file 2012 For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Turbotax business fed e file 2012 There are also limitations on what deductions and credits are allowed. Turbotax business fed e file 2012 See Publication 519 for more information. Turbotax business fed e file 2012 Self-employment tax. Turbotax business fed e file 2012   If you have no U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax. Turbotax business fed e file 2012 Additional Medicare Tax. Turbotax business fed e file 2012   Beginning in 2013, you may be required to pay Additional Medicare Tax. Turbotax business fed e file 2012 Also, you may need to report Additional Medicare Tax withheld by your employer. Turbotax business fed e file 2012 For more information see Additional Medicare Tax under Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 Net Investment Income Tax. Turbotax business fed e file 2012   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Turbotax business fed e file 2012 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Turbotax business fed e file 2012 The NIIT will apply to a bona fide resident of Puerto Rico if a taxpayer has modified adjusted gross income from sources outside of Puerto Rico that exceeds a specified threshold amount, e. Turbotax business fed e file 2012 g. Turbotax business fed e file 2012 , $200,000 for single filers. Turbotax business fed e file 2012 The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Turbotax business fed e file 2012 See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Turbotax business fed e file 2012 Estimated tax payments. Turbotax business fed e file 2012   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES (or Form 1040-ES(PR)). Turbotax business fed e file 2012   To pay by check or money order, send your payment with the Form 1040-ES (or Form 1040-ES(PR)) payment voucher to: Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Turbotax business fed e file 2012 irs. Turbotax business fed e file 2012 gov/e-pay. Turbotax business fed e file 2012   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Not a Bona Fide Resident of Puerto Rico An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 A Puerto Rico tax return reporting only your income from Puerto Rico sources. Turbotax business fed e file 2012 Wages for services performed in Puerto Rico, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from Puerto Rico sources. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return reporting income from worldwide sources. Turbotax business fed e file 2012 Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is not exempt from U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 taxes (see chapter 4 for more information). Turbotax business fed e file 2012 Nonresident alien. Turbotax business fed e file 2012   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 A Puerto Rico tax return reporting only your income from Puerto Rico sources. Turbotax business fed e file 2012 Wages for services performed in Puerto Rico, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from Puerto Rico sources. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040NR) according to the rules for a nonresident alien. Turbotax business fed e file 2012 See the Instructions for Form 1040NR. Turbotax business fed e file 2012 De minimis exception to determining source of income. Turbotax business fed e file 2012   In certain situations you will not have income from a possession. Turbotax business fed e file 2012 See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Turbotax business fed e file 2012 Use the addresses listed below to file your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 and Puerto Rico income tax returns. Turbotax business fed e file 2012 If you are not including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to: Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA If you request a refund on your Puerto Rico return, send your Puerto Rico tax return and all attachments to: Departamento de Hacienda P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government employees. Turbotax business fed e file 2012   Wages and cost-of-living allowances paid by the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. Turbotax business fed e file 2012 However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax. Turbotax business fed e file 2012 In order to claim this exclusion, you must: Include with your Puerto Rico tax return evidence to show the amount received during the year, and Be in full compliance with your Puerto Rico tax responsibilities. Turbotax business fed e file 2012   These wages are also subject to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax, but the cost-of-living allowances are excludable. Turbotax business fed e file 2012 A foreign tax credit is available in order to avoid double taxation. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. Turbotax business fed e file 2012 Civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces ), your tax residence is Puerto Rico, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. Turbotax business fed e file 2012 However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Puerto Rico is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040) and a state and/or local tax return, if required. Turbotax business fed e file 2012 If you have income from Puerto Rico other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1 ), contact the Hacienda for guidance. Turbotax business fed e file 2012 Income from sources outside Puerto Rico and the United States. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. Turbotax business fed e file 2012 In addition to your Puerto Rico and U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax returns, you may also have to file a return with the country or possession from which your outside income was derived. Turbotax business fed e file 2012 To avoid double taxation, a foreign tax credit is generally available for either the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 or Puerto Rico return. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Thomas Red is a bona fide resident of Puerto Rico and a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen. Turbotax business fed e file 2012 He traveled to the Dominican Republic and worked in the construction industry for 1 month. Turbotax business fed e file 2012 His wages were $20,000. Turbotax business fed e file 2012 Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. Turbotax business fed e file 2012 He may also have to file a tax return with the Dominican Republic. Turbotax business fed e file 2012 Moving expense deduction. Turbotax business fed e file 2012   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. Turbotax business fed e file 2012 Likewise, the expenses of a move back to the United States are generally attributable to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 earned income. Turbotax business fed e file 2012   If your move was to Puerto Rico, report your deduction for moving expenses as follows. Turbotax business fed e file 2012 If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rico tax return. Turbotax business fed e file 2012 If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax returns. Turbotax business fed e file 2012 Also, for purposes of a tax credit against your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Turbotax business fed e file 2012   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Turbotax business fed e file 2012 Additional child tax credit. Turbotax business fed e file 2012   If you are not required to file a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return, this credit is available only if you meet all three of the following conditions. Turbotax business fed e file 2012 You were a bona fide resident of Puerto Rico during the entire tax year. Turbotax business fed e file 2012 Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. Turbotax business fed e file 2012 You had three or more qualifying children. Turbotax business fed e file 2012 (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. Turbotax business fed e file 2012 ) If your income exceeds certain levels, you may be disqualified from receiving this credit. Turbotax business fed e file 2012 Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. Turbotax business fed e file 2012 Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. Turbotax business fed e file 2012 Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. Turbotax business fed e file 2012 See Double Taxation in chapter 4. Turbotax business fed e file 2012 The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its own tax system based partly on the same tax laws and tax rates that apply to the United States and partly on local taxes imposed by the CNMI government. Turbotax business fed e file 2012 Where To Get Forms and Information Requests for advice about CNMI residency and tax matters should be addressed to: Commonwealth of the Northern Mariana Islands  Division of Revenue and Taxation P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 5234 CHRB Dandan Commercial Center First Floor Rm #8  Saipan, MP 96950 You can order forms and publications by calling (670) 664-1000. Turbotax business fed e file 2012 You can order forms and publications through the fax at (670) 664-1015. Turbotax business fed e file 2012 You can get forms and publications at www. Turbotax business fed e file 2012 cnmidof. Turbotax business fed e file 2012 net. Turbotax business fed e file 2012 The addresses and phone numbers listed above are subject to change. Turbotax business fed e file 2012 Which Return To File In general, all individuals with income from the CNMI will file only one return, either to the CNMI or to the United States. Turbotax business fed e file 2012 Your residency status with regard to the CNMI determines which return you will file. Turbotax business fed e file 2012 Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. Turbotax business fed e file 2012 Bona Fide Resident of the CNMI If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, resident alien, or nonresident alien and a bona fide resident of the CNMI during the entire tax year, file your income tax return with the CNMI. Turbotax business fed e file 2012 Include income from worldwide sources on your CNMI return. Turbotax business fed e file 2012 In determining your total tax payments, include all income tax withheld by either the CNMI or the United States, any credit for an overpayment of income tax to either the CNMI or the United States, and any payments of estimated tax to either the CNMI or the United States. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 Generally, if you properly file your return with, and fully pay your income tax to, the CNMI, then you are not liable for filing an income tax return with, or for paying tax to, the United States for the tax year. Turbotax business fed e file 2012 However, if you were self-employed in 2013, see Self-employment tax , later. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 David Gold was a bona fide resident of the CNMI for 2013. Turbotax business fed e file 2012 He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 corporations that carry on business mainly in the United States. Turbotax business fed e file 2012 He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. Turbotax business fed e file 2012 He reports his total income of $34,000 on the CNMI return. Turbotax business fed e file 2012   If you are a bona fide resident of the CNMI for the entire tax year, send your return and all attachments to the Division of Revenue and Taxation at the address given earlier. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Citizen or Resident Alien (Other Than a Bona Fide Resident of the CNMI) If you have income from sources within the CNMI and are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien, but you are not a bona fide resident of the CNMI during the entire tax year, file your income tax return with the United States. Turbotax business fed e file 2012 Include income from worldwide sources on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 return. Turbotax business fed e file 2012 In determining your total tax payments, include all income tax withheld by either the United States or the CNMI, any credit for an overpayment of income tax to either the United States or the CNMI, and any payments of estimated tax to either the United States or the CNMI. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 Note. Turbotax business fed e file 2012 You may also need to complete Form 5074. Turbotax business fed e file 2012 You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. Turbotax business fed e file 2012 Form 5074. Turbotax business fed e file 2012   If you file a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within the CNMI. Turbotax business fed e file 2012   The United States and the CNMI use this form to divide your income taxes. Turbotax business fed e file 2012   There is an example of a filled-in Form 5074 in chapter 5. Turbotax business fed e file 2012 De minimis exception to determining source of income. Turbotax business fed e file 2012   In certain situations you will not have income from a possession. Turbotax business fed e file 2012 See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Turbotax business fed e file 2012 Citizen or resident alien of the United States but not a bona fide resident of the CNMI. Turbotax business fed e file 2012   If you are a citizen or resident alien of the United States but not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to: Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the CNMI for the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 A CNMI tax return reporting only your income from sources within the CNMI. Turbotax business fed e file 2012 In this situation, wages for services performed in the CNMI, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from sources within the CNMI. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040NR) reporting U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 source income according to the rules for a nonresident alien. Turbotax business fed e file 2012 See the instructions for Form 1040NR. Turbotax business fed e file 2012 If you are not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to:  Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA Send your CNMI tax return and all attachments to:  Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 5234 CHRB Saipan, MP 96950 Citizen of the CNMI If you are a citizen of the CNMI (meaning that you were born or naturalized in the CNMI) but not otherwise a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 resident alien during the tax year, file your income tax return with the CNMI. Turbotax business fed e file 2012 Include income from worldwide sources on your CNMI return. Turbotax business fed e file 2012 Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. Turbotax business fed e file 2012 Joint return. Turbotax business fed e file 2012   If you file a joint return, file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Turbotax business fed e file 2012 If the spouse with the greater AGI is a bona fide resident of the CNMI during the entire tax year, file the joint return with the CNMI. Turbotax business fed e file 2012 If the spouse with the greater AGI is a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien but not a bona fide resident of the CNMI during the entire tax year, file your joint return with the United States. Turbotax business fed e file 2012 For this purpose, income is determined without regard to community property laws. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Marsha Blue, a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, was a resident of the United States, and her spouse, a citizen of the CNMI, was a bona fide resident of the CNMI during the entire tax year. Turbotax business fed e file 2012 Marsha earned $65,000 as a computer programmer in the United States. Turbotax business fed e file 2012 Her spouse earned $20,000 as an artist in the CNMI. Turbotax business fed e file 2012 Marsha and her spouse will file a joint return. Turbotax business fed e file 2012 Because Marsha has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If you are a member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces who qualified as a bona fide resident of the CNMI in a prior tax year, your absence from the CNMI solely in compliance with military orders will not change your bona fide residency. Turbotax business fed e file 2012 If you did not qualify as a bona fide resident of the CNMI in a prior tax year, your presence in the CNMI solely in compliance with military orders will not qualify you as a bona fide resident of the CNMI. Turbotax business fed e file 2012 Civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces ), your tax residence is the CNMI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Turbotax business fed e file 2012 However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the CNMI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040) and a state and/or local tax return, if required. Turbotax business fed e file 2012 If you have income from the CNMI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return. Turbotax business fed e file 2012 Moving expense deduction. Turbotax business fed e file 2012   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. Turbotax business fed e file 2012 Likewise, the expenses of a move back to the United States are generally attributable to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 earned income. Turbotax business fed e file 2012   If your move was to the CNMI, report your deduction for moving expenses as follows. Turbotax business fed e file 2012 If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. Turbotax business fed e file 2012 If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. Turbotax business fed e file 2012   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Turbotax business fed e file 2012 Foreign tax credit. Turbotax business fed e file 2012   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return for tax paid to the CNMI. Turbotax business fed e file 2012 Self-employment tax. Turbotax business fed e file 2012   If you have no U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 filing requirement, but have income that is effectively connected with a trade or business in the CNMI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Turbotax business fed e file 2012 Additional Medicare Tax. Turbotax business fed e file 2012   Beginning in 2013, you may be required to pay Additional Medicare Tax. Turbotax business fed e file 2012 Also, you may need to report Additional Medicare Tax withheld by your employer. Turbotax business fed e file 2012 For more information see Additional Medicare Tax under Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 Estimated tax payments. Turbotax business fed e file 2012   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax to the IRS, get Form 1040-ES. Turbotax business fed e file 2012 Payment of estimated tax. Turbotax business fed e file 2012   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. Turbotax business fed e file 2012 Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. Turbotax business fed e file 2012 However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Turbotax business fed e file 2012   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). Turbotax business fed e file 2012 For this purpose, income is determined without regard to community property laws. Turbotax business fed e file 2012 Early payment. Turbotax business fed e file 2012   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Turbotax business fed e file 2012 If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. Turbotax business fed e file 2012   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Turbotax business fed e file 2012 irs. Turbotax business fed e file 2012 gov/e-pay. Turbotax business fed e file 2012   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. Turbotax business fed e file 2012 See Double Taxation in chapter 4. Turbotax business fed e file 2012 Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. Turbotax business fed e file 2012 Where To Get Forms and Information Requests for advice about Guam residency and tax matters should be addressed to: Department of Revenue and Taxation Government of Guam P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. Turbotax business fed e file 2012 You can order forms and publications through the fax at (671) 633-2643. Turbotax business fed e file 2012 You can get forms and publications at www. Turbotax business fed e file 2012 guamtax. Turbotax business fed e file 2012 com. Turbotax business fed e file 2012 The addresses and phone numbers listed above are subject to change. Turbotax business fed e file 2012 Which Return To File Bona fide residents of Guam are subject to special U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax rules. Turbotax business fed e file 2012 In general, all individuals with income from Guam will file only one return—either to Guam or the United States. Turbotax business fed e file 2012 Bona Fide Resident of Guam If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. Turbotax business fed e file 2012 This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. Turbotax business fed e file 2012 Include income from worldwide sources on your Guam return. Turbotax business fed e file 2012 In determining your total tax payments, include all income tax withheld by either Guam or the United States, any credit for an overpayment of income tax to either Guam or the United States, and any payments of estimated tax to either Guam or the United States. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 Generally, if you properly file your return with, and fully pay your income tax to, Guam, then you are not liable for filing an income tax return with, or for paying tax to, the United States. Turbotax business fed e file 2012 However, if you were self-employed in 2013, see Self-employment tax , later. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Gary Barker was a bona fide resident of Guam for 2013. Turbotax business fed e file 2012 He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 corporations that carry on business mainly in the United States. Turbotax business fed e file 2012 He must file a 2013 income tax return with the Government of Guam. Turbotax business fed e file 2012 He reports his total income of $27,000 on the Guam return. Turbotax business fed e file 2012 If you are a bona fide resident of Guam for the entire tax year, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 23607 GMF, GU 96921 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) If you have income from sources within Guam and are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien, but you are not a bona fide resident of Guam during the entire tax year, file your income tax return with the United States. Turbotax business fed e file 2012 Include income from worldwide sources on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 return. Turbotax business fed e file 2012 In determining your total tax payments, include all income tax withheld by either the United States or Guam, any credit for an overpayment of income tax to either the United States or Guam, and any payments of estimated tax to either the United States or Guam. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 You may also need to complete Form 5074. Turbotax business fed e file 2012 You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. Turbotax business fed e file 2012 Form 5074. Turbotax business fed e file 2012   If you file a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within Guam. Turbotax business fed e file 2012   The United States and Guam use this form to divide your income taxes. Turbotax business fed e file 2012   See the Illustrated Example of Form 5074 in chapter 5. Turbotax business fed e file 2012 De minimis exception to determining source of income. Turbotax business fed e file 2012   In certain situations you will not have income from a possession. Turbotax business fed e file 2012 See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Turbotax business fed e file 2012   If you are a citizen or resident alien of the United States but not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 5074) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of Guam) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Guam for the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 A Guam tax return reporting only your income from sources within Guam. Turbotax business fed e file 2012 In this situation, wages for services performed in Guam, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from sources within Guam. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040NR) reporting U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 source income according to the rules for a nonresident alien. Turbotax business fed e file 2012 See the instructions for Form 1040NR. Turbotax business fed e file 2012 If you are not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments to:  Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 23607 GMF, GU 96921 Citizen of Guam If you are a citizen of Guam (meaning that you were born or naturalized in Guam) but not otherwise a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 resident alien during the tax year, file your income tax return with Guam. Turbotax business fed e file 2012 Include income from worldwide sources on your Guam return. Turbotax business fed e file 2012 Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. Turbotax business fed e file 2012 Joint return. Turbotax business fed e file 2012   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Turbotax business fed e file 2012 If the spouse with the greater AGI is a bona fide resident of Guam during the entire tax year, file the joint return with Guam. Turbotax business fed e file 2012 If the spouse with the greater AGI is a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien but not a bona fide resident of Guam during the entire tax year, file the joint return with the United States. Turbotax business fed e file 2012 For this purpose, income is determined without regard to community property laws. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Bill Whiting, a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, was a resident of the United States, and his spouse, a citizen of Guam, was a bona fide resident of Guam during the entire tax year. Turbotax business fed e file 2012 Bill earned $45,000 as an engineer in the United States. Turbotax business fed e file 2012 His spouse earned $15,000 as a teacher in Guam. Turbotax business fed e file 2012 Bill and his spouse will file a joint return. Turbotax business fed e file 2012 Because Bill has the greater AGI, he and his spouse must file their return with the United States and report the entire $60,000 on that return. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If you are a member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces who qualified as a bona fide resident of Guam in a prior tax year, your absence from Guam solely in compliance with military orders will not change your bona fide residency. Turbotax business fed e file 2012 If you did not qualify as a bona fide resident of Guam in a prior tax year, your presence in Guam solely in compliance with military orders will not qualify you as a bona fide resident of Guam. Turbotax business fed e file 2012 Civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Turbotax business fed e file 2012 However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Guam is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040) and a state and/or local tax return, if required. Turbotax business fed e file 2012 If you have income from Guam other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return. Turbotax business fed e file 2012 Moving expense deduction. Turbotax business fed e file 2012   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. Turbotax business fed e file 2012 Likewise, the expenses of a move back to the United States are generally attributable to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 earned income. Turbotax business fed e file 2012   If your move was to Guam, report your deduction for moving expenses as follows. Turbotax business fed e file 2012 If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. Turbotax business fed e file 2012 If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. Turbotax business fed e file 2012   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Turbotax business fed e file 2012 Foreign tax credit. Turbotax business fed e file 2012   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return for tax paid to Guam. Turbotax business fed e file 2012 Self-employment tax. Turbotax business fed e file 2012   If you have no U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 filing requirement, but have income that is effectively connected with a trade or business in Guam, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Turbotax business fed e file 2012 Additional Medicare Tax. Turbotax business fed e file 2012   Beginning in 2013, you may be required to pay Additional Medicare Tax. Turbotax business fed e file 2012 Also, you may need to report Additional Medicare Tax withheld by your employer. Turbotax business fed e file 2012 For more information see Additional Medicare Tax under Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 Estimated tax payments. Turbotax business fed e file 2012   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. Turbotax business fed e file 2012 Payment of estimated tax. Turbotax business fed e file 2012   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. Turbotax business fed e file 2012 Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. Turbotax business fed e file 2012 However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Turbotax business fed e file 2012   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). Turbotax business fed e file 2012 For this purpose, income is determined without regard to community property laws. Turbotax business fed e file 2012 Early payment. Turbotax business fed e file 2012   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Turbotax business fed e file 2012 If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. Turbotax business fed e file 2012   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Department of Revenue and Taxation Government of Guam P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 23607 GMF, GU 96921   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Turbotax business fed e file 2012 irs. Turbotax business fed e file 2012 gov/e-pay. Turbotax business fed e file 2012   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and Guam. Turbotax business fed e file 2012 See Double Taxation in chapter 4. Turbotax business fed e file 2012 The U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands The U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands has its own tax system based on the same tax laws and tax rates that apply in the United States. Turbotax business fed e file 2012 An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI. Turbotax business fed e file 2012 Where To Get Forms and Information For information about filing your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands tax return or about Form 1040INFO, in St. Turbotax business fed e file 2012 Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. Turbotax business fed e file 2012 Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. Turbotax business fed e file 2012 You can order forms and publications through the fax at (340) 774-2672. Turbotax business fed e file 2012 For information about filing your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands tax return or about Form 1040INFO, in St. Turbotax business fed e file 2012 Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. Turbotax business fed e file 2012 I. Turbotax business fed e file 2012 00820–4421 You can order forms and publications by calling (340) 773-1040. Turbotax business fed e file 2012 You can order forms and publications through the fax at (340) 773-1006. Turbotax business fed e file 2012 You can access the USVI website at www. Turbotax business fed e file 2012 viirb. Turbotax business fed e file 2012 com. Turbotax business fed e file 2012 The addresses and phone numbers listed above are subject to change. Turbotax business fed e file 2012 Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of the tax to each jurisdiction. Turbotax business fed e file 2012 Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. Turbotax business fed e file 2012 Include your worldwide income on your USVI return. Turbotax business fed e file 2012 In determining your total tax payments, take into account all income tax withheld by either the USVI or the United States, any credit for an overpayment of income tax to either the USVI or the United States, and any payments of estimated tax to either the USVI or the United States. Turbotax business fed e file 2012 Pay any balance of tax due with your tax return. Turbotax business fed e file 2012 Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax. Turbotax business fed e file 2012 You generally do not have to file with the United States for any tax year in which you are a bona fide resident of the USVI during the entire tax year, provided you report and pay tax on your income from all sources to the USVI and identify the source(s) of the income on the return. Turbotax business fed e file 2012 However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. Turbotax business fed e file 2012 For more information, see Self-employment tax under Special Rules for the USVI, later. Turbotax business fed e file 2012 Form 1040INFO. Turbotax business fed e file 2012   If you are a bona fide resident of the USVI and have non-USVI source income, you must also file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands Bureau of Internal Revenue. Turbotax business fed e file 2012 Attach Form 1040INFO to your USVI tax return before filing. Turbotax business fed e file 2012 You can get Form 1040INFO by contacting the address or website given earlier. Turbotax business fed e file 2012   If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Turbotax business fed e file 2012 Thomas, VI 00802 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien but not a bona fide resident of the USVI during the entire tax year, you must file your original Form 1040 with the United States and an identical copy of that return with the USVI if you have: Income from sources in the USVI, or Income effectively connected with the conduct of a trade or business in the USVI. Turbotax business fed e file 2012 File your original Form 1040 with the United States and file a signed copy of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. Turbotax business fed e file 2012 Use Form 8689 to figure the amount of tax you must pay to the USVI. Turbotax business fed e file 2012 Form 8689. Turbotax business fed e file 2012   Complete this form and attach it to both the return you file with the United States and the copy you file with the USVI. Turbotax business fed e file 2012 Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 return (after certain adjustments) × USVI AGI Worldwide AGI     Pay any tax due to the USVI when you file your return with the Virgin Islands Bureau of Internal Revenue. Turbotax business fed e file 2012 To receive credit on your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 return for taxes paid to the USVI, include the amounts from Form 8689, lines 40 and 45, in the total on Form 1040, line 72. Turbotax business fed e file 2012 On the dotted line next to line 72, enter “Form 8689” and show the amounts. Turbotax business fed e file 2012   See the illustrated example in chapter 5. Turbotax business fed e file 2012 De minimis exception to determining source of income. Turbotax business fed e file 2012   In certain situations you will not have income from a possession. Turbotax business fed e file 2012 See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Turbotax business fed e file 2012   If you are not a bona fide resident of the USVI during the entire tax year, but you have USVI source income, and you are not including a check or a money order, file Form 1040 and all attachments (including Form 8689) with the:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Turbotax business fed e file 2012 Thomas, VI 00802 Nonresident Alien (Other Than a Bona Fide Resident of the USVI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the USVI for the entire tax year, you generally must file the following returns. Turbotax business fed e file 2012 A USVI tax return reporting only your income from sources within the USVI. Turbotax business fed e file 2012 In this situation, wages for services performed in the USVI, whether for a private employer, the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government, or otherwise, is income from sources within the USVI. Turbotax business fed e file 2012 A U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040NR) reporting U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 source income according to the rules for a nonresident alien. Turbotax business fed e file 2012 See the instructions for Form 1040NR. Turbotax business fed e file 2012   If you are not a bona fide resident of the USVI during the entire tax year, and you are not including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 8689) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Turbotax business fed e file 2012 O. Turbotax business fed e file 2012 Box 1303 Charlotte, NC 28201-1303  USA   Send your USVI tax return and all attachments to:  Bureau of Internal Revenue 6115 Estate Smith Bay St. Turbotax business fed e file 2012 Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. Turbotax business fed e file 2012 Joint return. Turbotax business fed e file 2012   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Turbotax business fed e file 2012 If the spouse with the greater AGI is a bona fide resident of the USVI during the entire tax year, file the joint return with the USVI. Turbotax business fed e file 2012 If the spouse with the greater AGI is a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien of the United States but not a bona fide resident of the USVI during the entire tax year, file the joint return with the United States. Turbotax business fed e file 2012 For this purpose, income is determined without regard to community property laws. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Marge Birch, a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, was a resident of the United States, and her spouse, a citizen of the USVI, was a bona fide resident of the USVI during the entire tax year. Turbotax business fed e file 2012 Marge earned $55,000 as an architect in the United States. Turbotax business fed e file 2012 Her spouse earned $30,000 as a librarian in the USVI. Turbotax business fed e file 2012 Marge and her spouse will file a joint return. Turbotax business fed e file 2012 Because Marge has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. Turbotax business fed e file 2012 U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If you are a member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces who qualified as a bona fide resident of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands in a prior tax year, your absence from the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands solely in compliance with military orders will not change your bona fide residency. Turbotax business fed e file 2012 If you did not qualify as a bona fide resident of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands in a prior tax year, your presence in the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands. Turbotax business fed e file 2012 Civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces. Turbotax business fed e file 2012   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces ), your tax residence is the USVI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Turbotax business fed e file 2012 However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the USVI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return (Form 1040) and a state and/or local tax return, if required. Turbotax business fed e file 2012 If you have income from the USVI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 8689 with your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax return. Turbotax business fed e file 2012 In this case, follow the guidance under U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. Turbotax business fed e file 2012 Moving expense deduction. Turbotax business fed e file 2012   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. Turbotax business fed e file 2012 Likewise, the expenses of a move back to the United States are generally attributable to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 earned income. Turbotax business fed e file 2012   If your move was to the USVI, report your deduction for moving expenses as follows. Turbotax business fed e file 2012 If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. Turbotax business fed e file 2012 If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 8689, line 20. Turbotax business fed e file 2012   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Turbotax business fed e file 2012 Foreign tax credit. Turbotax business fed e file 2012   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 income tax return for tax paid to the USVI. Turbotax business fed e file 2012 However, individuals other than bona fide residents of the USVI may claim a direct credit for such tax (see Form 8689 earlier in this section). Turbotax business fed e file 2012 Self-employment tax. Turbotax business fed e file 2012   If you have no U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 filing requirement, but have income that is effectively connected with a trade or business in the USVI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Turbotax business fed e file 2012 Additional Medicare Tax. Turbotax business fed e file 2012   Beginning in 2013, you may be required to pay Additional Medicare Tax. Turbotax business fed e file 2012 Also, you may need to report Additional Medicare Tax withheld by your employer. Turbotax business fed e file 2012 For more information see Additional Medicare Tax under Special Rules for Completing Your U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Tax Return in chapter 4. Turbotax business fed e file 2012 Estimated tax payments. Turbotax business fed e file 2012   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. Turbotax business fed e file 2012   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay St. Turbotax business fed e file 2012 Thomas, VI 00802   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Turbotax business fed e file 2012 irs. Turbotax business fed e file 2012 gov/e-pay. Turbotax business fed e file 2012   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. Turbotax business fed e file 2012 Extension of time to file. Turbotax business fed e file 2012   You can get an automatic 6-month extension of time to file your tax return. Turbotax business fed e file 2012 See Extension of Time To File in chapter 4. Turbotax business fed e file 2012 Bona fide residents of the USVI during the entire tax year must file a paper Form 4868 with the Virgin Islands Bureau of Internal Revenue. Turbotax business fed e file 2012 Nonresidents of the USVI should file separate extension requests with the IRS and the Virgin Islands Bureau of Internal Revenue and make any payments due to the respective jurisdictions. Turbotax business fed e file 2012 However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. Turbotax business fed e file 2012 Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Virgin Islands. Turbotax business fed e file 2012 See Double Taxation in chapter 4. Turbotax business fed e file 2012 Prev  Up  Next   Home   More Online Publications