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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Www Freefilefillableforms Com

Turbotax 2012 CouponFree State Filing Income TaxTaxact 2009FreetaxreturnsHow Do You Amend TaxesH And R Free TaxFile Taxes For 2010Back Tax Filing1040ez Instructions 2014Taxcut SoftwareForm1040ezTurbo Tax 1040ezMyfreetaxes 20131040x Online FileAmend Taxes OnlineWhen Can I Amend My 2011 Tax ReturnFederal Tax Return 2012Do You File Taxes If You Are UnemployedE-file 2012 Tax Return1040 Es Tax FormsIrs AmendmentsFile A 1040x Amended Return1040ez Form And InstructionsI Need To Print A 1040ez FormFree Online Tax Filing 2012Free State Tax E-fileMilitary Tax CreditsForm 1040 2012Can I File 1040nr OnlineState Taxes Online Free2011 Form 1040ezMilitary Taxes1040x 2012 Tax FormFile State Tax Only For FreeFiling Taxes As A Student1040nr Tax FormHow To File Form 1040xFree Federal Tax Filing 2011Www Hr BlockFile My 2010 Taxes Free

Www Freefilefillableforms Com

Www freefilefillableforms com Publication 936 - Main Content Table of Contents Part I. Www freefilefillableforms com Home Mortgage InterestSecured Debt Qualified Home Special Situations Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement How To Report Special Rule for Tenant-Stockholders in Cooperative Housing Corporations Part II. Www freefilefillableforms com Limits on Home Mortgage Interest DeductionHome Acquisition Debt Home Equity Debt Grandfathered Debt Table 1 Instructions How To Get Tax HelpLow Income Taxpayer Clinics Part I. Www freefilefillableforms com Home Mortgage Interest This part explains what you can deduct as home mortgage interest. Www freefilefillableforms com It includes discussions on points, mortgage insurance premiums, and how to report deductible interest on your tax return. Www freefilefillableforms com Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Www freefilefillableforms com The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Www freefilefillableforms com You can deduct home mortgage interest if all the following conditions are met. Www freefilefillableforms com You file Form 1040 and itemize deductions on Schedule A (Form 1040). Www freefilefillableforms com The mortgage is a secured debt on a qualified home in which you have an ownership interest. Www freefilefillableforms com Secured Debt and Qualified Home are explained later. Www freefilefillableforms com  Both you and the lender must intend that the loan be repaid. Www freefilefillableforms com Fully deductible interest. Www freefilefillableforms com   In most cases, you can deduct all of your home mortgage interest. Www freefilefillableforms com How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Www freefilefillableforms com   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Www freefilefillableforms com (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Www freefilefillableforms com ) If one or more of your mortgages does not fit into any of these categories, use Part II of this publication to figure the amount of interest you can deduct. Www freefilefillableforms com   The three categories are as follows. Www freefilefillableforms com Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Www freefilefillableforms com Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Www freefilefillableforms com Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Www freefilefillableforms com The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Www freefilefillableforms com   See Part II for more detailed definitions of grandfathered, home acquisition, and home equity debt. Www freefilefillableforms com    You can use Figure A to check whether your home mortgage interest is fully deductible. Www freefilefillableforms com This image is too large to be displayed in the current screen. Www freefilefillableforms com Please click the link to view the image. Www freefilefillableforms com Figure A. Www freefilefillableforms com Is My Home Mortgage Interest Fully Deductible? Secured Debt You can deduct your home mortgage interest only if your mortgage is a secured debt. Www freefilefillableforms com A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that: Makes your ownership in a qualified home security for payment of the debt, Provides, in case of default, that your home could satisfy the debt, and Is recorded or is otherwise perfected under any state or local law that applies. Www freefilefillableforms com In other words, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. Www freefilefillableforms com If you cannot pay the debt, your home can then serve as payment to the lender to satisfy (pay) the debt. Www freefilefillableforms com In this publication, mortgage will refer to secured debt. Www freefilefillableforms com Debt not secured by home. Www freefilefillableforms com   A debt is not secured by your home if it is secured solely because of a lien on your general assets or if it is a security interest that attaches to the property without your consent (such as a mechanic's lien or judgment lien). Www freefilefillableforms com   A debt is not secured by your home if it once was, but is no longer secured by your home. Www freefilefillableforms com Wraparound mortgage. Www freefilefillableforms com   This is not a secured debt unless it is recorded or otherwise perfected under state law. Www freefilefillableforms com Example. Www freefilefillableforms com Beth owns a home subject to a mortgage of $40,000. Www freefilefillableforms com She sells the home for $100,000 to John, who takes it subject to the $40,000 mortgage. Www freefilefillableforms com Beth continues to make the payments on the $40,000 note. Www freefilefillableforms com John pays $10,000 down and gives Beth a $90,000 note secured by a wraparound mortgage on the home. Www freefilefillableforms com Beth does not record or otherwise perfect the $90,000 mortgage under the state law that applies. Www freefilefillableforms com Therefore, the mortgage is not a secured debt and John cannot deduct any of the interest he pays on it as home mortgage interest. Www freefilefillableforms com Choice to treat the debt as not secured by your home. Www freefilefillableforms com   You can choose to treat any debt secured by your qualified home as not secured by the home. Www freefilefillableforms com This treatment begins with the tax year for which you make the choice and continues for all later tax years. Www freefilefillableforms com You can revoke your choice only with the consent of the Internal Revenue Service (IRS). Www freefilefillableforms com   You may want to treat a debt as not secured by your home if the interest on that debt is fully deductible (for example, as a business expense) whether or not it qualifies as home mortgage interest. Www freefilefillableforms com This may allow you, if the limits in Part II apply, more of a deduction for interest on other debts that are deductible only as home mortgage interest. Www freefilefillableforms com Cooperative apartment owner. Www freefilefillableforms com   If you own stock in a cooperative housing corporation, see the Special Rule for Tenant-Stockholders in Cooperative Housing Corporations , near the end of this Part I. Www freefilefillableforms com Qualified Home For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. Www freefilefillableforms com This means your main home or your second home. Www freefilefillableforms com A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. Www freefilefillableforms com The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Www freefilefillableforms com Otherwise, it is considered personal interest and is not deductible. Www freefilefillableforms com Main home. Www freefilefillableforms com   You can have only one main home at any one time. Www freefilefillableforms com This is the home where you ordinarily live most of the time. Www freefilefillableforms com Second home. Www freefilefillableforms com   A second home is a home that you choose to treat as your second home. Www freefilefillableforms com Second home not rented out. Www freefilefillableforms com   If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. Www freefilefillableforms com You do not have to use the home during the year. Www freefilefillableforms com Second home rented out. Www freefilefillableforms com   If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. Www freefilefillableforms com You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. Www freefilefillableforms com If you do not use the home long enough, it is considered rental property and not a second home. Www freefilefillableforms com For information on residential rental property, see Publication 527. Www freefilefillableforms com More than one second home. Www freefilefillableforms com   If you have more than one second home, you can treat only one as the qualified second home during any year. Www freefilefillableforms com However, you can change the home you treat as a second home during the year in the following situations. Www freefilefillableforms com If you get a new home during the year, you can choose to treat the new home as your second home as of the day you buy it. Www freefilefillableforms com If your main home no longer qualifies as your main home, you can choose to treat it as your second home as of the day you stop using it as your main home. Www freefilefillableforms com If your second home is sold during the year or becomes your main home, you can choose a new second home as of the day you sell the old one or begin using it as your main home. Www freefilefillableforms com Divided use of your home. Www freefilefillableforms com   The only part of your home that is considered a qualified home is the part you use for residential living. Www freefilefillableforms com If you use part of your home for other than residential living, such as a home office, you must allocate the use of your home. Www freefilefillableforms com You must then divide both the cost and fair market value of your home between the part that is a qualified home and the part that is not. Www freefilefillableforms com Dividing the cost may affect the amount of your home acquisition debt, which is limited to the cost of your home plus the cost of any improvements. Www freefilefillableforms com (See Home Acquisition Debt in Part II. Www freefilefillableforms com ) Dividing the fair market value may affect your home equity debt limit, also explained in Part II . Www freefilefillableforms com Renting out part of home. Www freefilefillableforms com   If you rent out part of a qualified home to another person (tenant), you can treat the rented part as being used by you for residential living only if all of the following conditions apply. Www freefilefillableforms com The rented part of your home is used by the tenant primarily for residential living. Www freefilefillableforms com The rented part of your home is not a self-contained residential unit having separate sleeping, cooking, and toilet facilities. Www freefilefillableforms com You do not rent (directly or by sublease) the same or different parts of your home to more than two tenants at any time during the tax year. Www freefilefillableforms com If two persons (and dependents of either) share the same sleeping quarters, they are treated as one tenant. Www freefilefillableforms com Office in home. Www freefilefillableforms com   If you have an office in your home that you use in your business, see Publication 587, Business Use of Your Home. Www freefilefillableforms com It explains how to figure your deduction for the business use of your home, which includes the business part of your home mortgage interest. Www freefilefillableforms com Home under construction. Www freefilefillableforms com   You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it is ready for occupancy. Www freefilefillableforms com   The 24-month period can start any time on or after the day construction begins. Www freefilefillableforms com Home destroyed. Www freefilefillableforms com   You may be able to continue treating your home as a qualified home even after it is destroyed in a fire, storm, tornado, earthquake, or other casualty. Www freefilefillableforms com This means you can continue to deduct the interest you pay on your home mortgage, subject to the limits described in this publication. Www freefilefillableforms com   You can continue treating a destroyed home as a qualified home if, within a reasonable period of time after the home is destroyed, you: Rebuild the destroyed home and move into it, or Sell the land on which the home was located. Www freefilefillableforms com   This rule applies to your main home and to a second home that you treat as a qualified home. Www freefilefillableforms com Time-sharing arrangements. Www freefilefillableforms com   You can treat a home you own under a time-sharing plan as a qualified home if it meets all the requirements. Www freefilefillableforms com A time-sharing plan is an arrangement between two or more people that limits each person's interest in the home or right to use it to a certain part of the year. Www freefilefillableforms com Rental of time-share. Www freefilefillableforms com   If you rent out your time-share, it qualifies as a second home only if you also use it as a home during the year. Www freefilefillableforms com See Second home rented out , earlier, for the use requirement. Www freefilefillableforms com To know whether you meet that requirement, count your days of use and rental of the home only during the time you have a right to use it or to receive any benefits from the rental of it. Www freefilefillableforms com Married taxpayers. Www freefilefillableforms com   If you are married and file a joint return, your qualified home(s) can be owned either jointly or by only one spouse. Www freefilefillableforms com Separate returns. Www freefilefillableforms com   If you are married filing separately and you and your spouse own more than one home, you can each take into account only one home as a qualified home. Www freefilefillableforms com However, if you both consent in writing, then one spouse can take both the main home and a second home into account. Www freefilefillableforms com Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Www freefilefillableforms com It also describes certain special situations that may affect your deduction. Www freefilefillableforms com Late payment charge on mortgage payment. Www freefilefillableforms com   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Www freefilefillableforms com Mortgage prepayment penalty. Www freefilefillableforms com   If you pay off your home mortgage early, you may have to pay a penalty. Www freefilefillableforms com You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Www freefilefillableforms com Sale of home. Www freefilefillableforms com   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of the sale. Www freefilefillableforms com Example. Www freefilefillableforms com John and Peggy Harris sold their home on May 7. Www freefilefillableforms com Through April 30, they made home mortgage interest payments of $1,220. Www freefilefillableforms com The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Www freefilefillableforms com Their mortgage interest deduction is $1,270 ($1,220 + $50). Www freefilefillableforms com Prepaid interest. Www freefilefillableforms com   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Www freefilefillableforms com You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Www freefilefillableforms com However, there is an exception that applies to points, discussed later. Www freefilefillableforms com Mortgage interest credit. Www freefilefillableforms com    You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Www freefilefillableforms com Figure the credit on Form 8396, Mortgage Interest Credit. Www freefilefillableforms com If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Www freefilefillableforms com   See Form 8396 and Publication 530 for more information on the mortgage interest credit. Www freefilefillableforms com Ministers' and military housing allowance. Www freefilefillableforms com   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Www freefilefillableforms com Hardest Hit Fund and Emergency Homeowners' Loan Programs. Www freefilefillableforms com   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Www freefilefillableforms com You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Www freefilefillableforms com You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Www freefilefillableforms com If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098–MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums), and box 5 (other information including real property taxes paid). Www freefilefillableforms com However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Www freefilefillableforms com Mortgage assistance payments under section 235 of the National Housing Act. Www freefilefillableforms com   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Www freefilefillableforms com You cannot deduct the interest that is paid for you. Www freefilefillableforms com No other effect on taxes. Www freefilefillableforms com   Do not include these mortgage assistance payments in your income. Www freefilefillableforms com Also, do not use these payments to reduce other deductions, such as real estate taxes. Www freefilefillableforms com Divorced or separated individuals. Www freefilefillableforms com   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Www freefilefillableforms com See the discussion of Payments for jointly-owned home under Alimony in Publication 504, Divorced or Separated Individuals. Www freefilefillableforms com Redeemable ground rents. Www freefilefillableforms com   In some states (such as Maryland), you can buy your home subject to a ground rent. Www freefilefillableforms com A ground rent is an obligation you assume to pay a fixed amount per year on the property. Www freefilefillableforms com Under this arrangement, you are leasing (rather than buying) the land on which your home is located. Www freefilefillableforms com   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Www freefilefillableforms com   A ground rent is a redeemable ground rent if all of the following are true. Www freefilefillableforms com Your lease, including renewal periods, is for more than 15 years. Www freefilefillableforms com You can freely assign the lease. Www freefilefillableforms com You have a present or future right (under state or local law) to end the lease and buy the lessor's entire interest in the land by paying a specific amount. Www freefilefillableforms com The lessor's interest in the land is primarily a security interest to protect the rental payments to which he or she is entitled. Www freefilefillableforms com   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Www freefilefillableforms com Nonredeemable ground rents. Www freefilefillableforms com   Payments on a nonredeemable ground rent are not mortgage interest. Www freefilefillableforms com You can deduct them as rent if they are a business expense or if they are for rental property. Www freefilefillableforms com Reverse mortgages. Www freefilefillableforms com   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Www freefilefillableforms com With a reverse mortgage, you retain title to your home. Www freefilefillableforms com Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Www freefilefillableforms com Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Www freefilefillableforms com Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until you actually pay it, which is usually when you pay off the loan in full. Www freefilefillableforms com Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Part II. Www freefilefillableforms com Rental payments. Www freefilefillableforms com   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Www freefilefillableforms com This is true even if the settlement papers call them interest. Www freefilefillableforms com You cannot deduct these payments as home mortgage interest. Www freefilefillableforms com Mortgage proceeds invested in tax-exempt securities. Www freefilefillableforms com   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Www freefilefillableforms com “Grandfathered debt” and “home equity debt” are defined in Part II of this publication. Www freefilefillableforms com Refunds of interest. Www freefilefillableforms com   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Www freefilefillableforms com If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Www freefilefillableforms com However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Www freefilefillableforms com This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Www freefilefillableforms com If you need to include the refund in income, report it on Form 1040, line 21. Www freefilefillableforms com   If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Www freefilefillableforms com For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Www freefilefillableforms com   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in Publication 525, Taxable and Nontaxable Income. Www freefilefillableforms com Cooperative apartment owner. Www freefilefillableforms com   If you own a cooperative apartment, you must reduce your home mortgage interest deduction by your share of any cash portion of a patronage dividend that the cooperative receives. Www freefilefillableforms com The patronage dividend is a partial refund to the cooperative housing corporation of mortgage interest it paid in a prior year. Www freefilefillableforms com   If you receive a Form 1098 from the cooperative housing corporation, the form should show only the amount you can deduct. Www freefilefillableforms com Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Www freefilefillableforms com Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Www freefilefillableforms com This image is too large to be displayed in the current screen. Www freefilefillableforms com Please click the link to view the image. Www freefilefillableforms com Figure B. Www freefilefillableforms com Are My Points Fully Deductible This Year? A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Www freefilefillableforms com See Points paid by the seller , later. Www freefilefillableforms com General Rule You generally cannot deduct the full amount of points in the year paid. Www freefilefillableforms com Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Www freefilefillableforms com See Deduction Allowed Ratably , next. Www freefilefillableforms com For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Www freefilefillableforms com Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Www freefilefillableforms com You use the cash method of accounting. Www freefilefillableforms com This means you report income in the year you receive it and deduct expenses in the year you pay them. Www freefilefillableforms com Most individuals use this method. Www freefilefillableforms com Your loan is secured by a home. Www freefilefillableforms com (The home does not need to be your main home. Www freefilefillableforms com ) Your loan period is not more than 30 years. Www freefilefillableforms com If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Www freefilefillableforms com Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Www freefilefillableforms com Example. Www freefilefillableforms com You use the cash method of accounting. Www freefilefillableforms com In 2013, you took out a $100,000 loan payable over 20 years. Www freefilefillableforms com The terms of the loan are the same as for other 20-year loans offered in your area. Www freefilefillableforms com You paid $4,800 in points. Www freefilefillableforms com You made 3 monthly payments on the loan in 2013. Www freefilefillableforms com You can deduct $60 [($4,800 ÷ 240 months) x 3 payments] in 2013. Www freefilefillableforms com In 2014, if you make all twelve payments, you will be able to deduct $240 ($20 x 12). Www freefilefillableforms com Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Www freefilefillableforms com (You can use Figure B as a quick guide to see whether your points are fully deductible in the year paid. Www freefilefillableforms com ) Your loan is secured by your main home. Www freefilefillableforms com (Your main home is the one you ordinarily live in most of the time. Www freefilefillableforms com ) Paying points is an established business practice in the area where the loan was made. Www freefilefillableforms com The points paid were not more than the points generally charged in that area. Www freefilefillableforms com You use the cash method of accounting. Www freefilefillableforms com This means you report income in the year you receive it and deduct expenses in the year you pay them. Www freefilefillableforms com Most individuals use this method. Www freefilefillableforms com The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Www freefilefillableforms com The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Www freefilefillableforms com The funds you provided are not required to have been applied to the points. Www freefilefillableforms com They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Www freefilefillableforms com You cannot have borrowed these funds from your lender or mortgage broker. Www freefilefillableforms com You use your loan to buy or build your main home. Www freefilefillableforms com The points were computed as a percentage of the principal amount of the mortgage. Www freefilefillableforms com The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Www freefilefillableforms com The points may be shown as paid from either your funds or the seller's. Www freefilefillableforms com Note. Www freefilefillableforms com If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Www freefilefillableforms com Home improvement loan. Www freefilefillableforms com   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Www freefilefillableforms com Second home. Www freefilefillableforms com You cannot fully deduct in the year paid points you pay on loans secured by your second home. Www freefilefillableforms com You can deduct these points only over the life of the loan. Www freefilefillableforms com Refinancing. Www freefilefillableforms com   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Www freefilefillableforms com This is true even if the new mortgage is secured by your main home. Www freefilefillableforms com   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Www freefilefillableforms com You can deduct the rest of the points over the life of the loan. Www freefilefillableforms com Example 1. Www freefilefillableforms com In 1998, Bill Fields got a mortgage to buy a home. Www freefilefillableforms com In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Www freefilefillableforms com The mortgage is secured by his home. Www freefilefillableforms com To get the new loan, he had to pay three points ($3,000). Www freefilefillableforms com Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Www freefilefillableforms com Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Www freefilefillableforms com The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Www freefilefillableforms com Bill's first payment on the new loan was due July 1. Www freefilefillableforms com He made six payments on the loan in 2013 and is a cash basis taxpayer. Www freefilefillableforms com Bill used the funds from the new mortgage to repay his existing mortgage. Www freefilefillableforms com Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Www freefilefillableforms com He cannot deduct all of the points in 2013. Www freefilefillableforms com He can deduct two points ($2,000) ratably over the life of the loan. Www freefilefillableforms com He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Www freefilefillableforms com The other point ($1,000) was a fee for services and is not deductible. Www freefilefillableforms com Example 2. Www freefilefillableforms com The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Www freefilefillableforms com Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Www freefilefillableforms com His deduction is $500 ($2,000 × 25%). Www freefilefillableforms com Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Www freefilefillableforms com This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Www freefilefillableforms com The total amount Bill deducts in 2013 is $550 ($500 + $50). Www freefilefillableforms com Special Situations This section describes certain special situations that may affect your deduction of points. Www freefilefillableforms com Original issue discount. Www freefilefillableforms com   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Www freefilefillableforms com This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Www freefilefillableforms com Amounts charged for services. Www freefilefillableforms com    Amounts charged by the lender for specific services connected to the loan are not interest. Www freefilefillableforms com Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Www freefilefillableforms com  You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Www freefilefillableforms com Points paid by the seller. Www freefilefillableforms com   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Www freefilefillableforms com Treatment by seller. Www freefilefillableforms com   The seller cannot deduct these fees as interest. Www freefilefillableforms com But they are a selling expense that reduces the amount realized by the seller. Www freefilefillableforms com See Publication 523 for information on selling your home. Www freefilefillableforms com Treatment by buyer. Www freefilefillableforms com   The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Www freefilefillableforms com If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Www freefilefillableforms com If any of those tests are not met, the buyer deducts the points over the life of the loan. Www freefilefillableforms com   If you need information about the basis of your home, see Publication 523 or Publication 530. Www freefilefillableforms com Funds provided are less than points. Www freefilefillableforms com   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Www freefilefillableforms com In addition, you can deduct any points paid by the seller. Www freefilefillableforms com Example 1. Www freefilefillableforms com When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Www freefilefillableforms com You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Www freefilefillableforms com Of the $1,000 charged for points, you can deduct $750 in the year paid. Www freefilefillableforms com You spread the remaining $250 over the life of the mortgage. Www freefilefillableforms com Example 2. Www freefilefillableforms com The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Www freefilefillableforms com In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Www freefilefillableforms com You spread the remaining $250 over the life of the mortgage. Www freefilefillableforms com You must reduce the basis of your home by the $1,000 paid by the seller. Www freefilefillableforms com Excess points. Www freefilefillableforms com   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Www freefilefillableforms com You must spread any additional points over the life of the mortgage. Www freefilefillableforms com Mortgage ending early. Www freefilefillableforms com   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Www freefilefillableforms com However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Www freefilefillableforms com Instead, deduct the remaining balance over the term of the new loan. Www freefilefillableforms com   A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Www freefilefillableforms com Example. Www freefilefillableforms com Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Www freefilefillableforms com He deducts $200 points per year. Www freefilefillableforms com Through 2012, Dan has deducted $2,200 of the points. Www freefilefillableforms com Dan prepaid his mortgage in full in 2013. Www freefilefillableforms com He can deduct the remaining $800 of points in 2013. Www freefilefillableforms com Limits on deduction. Www freefilefillableforms com   You cannot fully deduct points paid on a mortgage that exceeds the limits discussed in Part II . Www freefilefillableforms com See the Table 1 Instructions for line 10. Www freefilefillableforms com Form 1098. Www freefilefillableforms com    The mortgage interest statement you receive should show not only the total interest paid during the year, but also your deductible points paid during the year. Www freefilefillableforms com See Form 1098, Mortgage Interest Statement , later. Www freefilefillableforms com Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Www freefilefillableforms com The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006. Www freefilefillableforms com Qualified mortgage insurance. Www freefilefillableforms com   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Www freefilefillableforms com   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Www freefilefillableforms com If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Www freefilefillableforms com The funding fee and guarantee fee can either be included in the amount of the loan or paid in full at the time of closing. Www freefilefillableforms com These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Www freefilefillableforms com Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Www freefilefillableforms com Special rules for prepaid mortgage insurance. Www freefilefillableforms com   Generally, if you paid premiums for qualified mortgage insurance that are properly allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Www freefilefillableforms com You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Www freefilefillableforms com No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Www freefilefillableforms com This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Www freefilefillableforms com Example. Www freefilefillableforms com Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Www freefilefillableforms com Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Www freefilefillableforms com Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Www freefilefillableforms com Ryan's adjusted gross income (AGI) for 2012 is $76,000. Www freefilefillableforms com Ryan can deduct $880 ($9,240 ÷ 84 x 8 months) for qualified mortgage insurance premiums in 2012. Www freefilefillableforms com For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 x 12 months) if his AGI is $100,000 or less. Www freefilefillableforms com In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Www freefilefillableforms com Limit on deduction. Www freefilefillableforms com   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Www freefilefillableforms com See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Www freefilefillableforms com If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Www freefilefillableforms com Form 1098. Www freefilefillableforms com   The mortgage interest statement you receive should show not only the total interest paid during the year, but also your mortgage insurance premiums paid during the year, which may qualify to be treated as deductible mortgage interest. Www freefilefillableforms com See Form 1098, Mortgage Interest Statement, next. Www freefilefillableforms com Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Www freefilefillableforms com You will receive the statement if you pay interest to a person (including a financial institution or cooperative housing corporation) in the course of that person's trade or business. Www freefilefillableforms com A governmental unit is a person for purposes of furnishing the statement. Www freefilefillableforms com The statement for each year should be sent to you by January 31 of the following year. Www freefilefillableforms com A copy of this form will also be sent to the IRS. Www freefilefillableforms com The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Www freefilefillableforms com However, it should not show any interest that was paid for you by a government agency. Www freefilefillableforms com As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Www freefilefillableforms com However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Www freefilefillableforms com See the earlier discussion of Points to determine whether you can deduct points not shown on Form 1098. Www freefilefillableforms com Prepaid interest on Form 1098. Www freefilefillableforms com   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Www freefilefillableforms com However, you cannot deduct the prepaid amount for January 2014 in 2013. Www freefilefillableforms com (See Prepaid interest , earlier. Www freefilefillableforms com ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Www freefilefillableforms com You will include the interest for January 2014 with other interest you pay for 2014. Www freefilefillableforms com Refunded interest. Www freefilefillableforms com   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Www freefilefillableforms com See Refunds of interest , earlier. Www freefilefillableforms com Mortgage insurance premiums. Www freefilefillableforms com   The amount of mortgage insurance premiums you paid during 2013 may be shown in Box 4 of Form 1098. Www freefilefillableforms com See Mortgage Insurance Premiums , earlier. Www freefilefillableforms com How To Report Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Www freefilefillableforms com If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Www freefilefillableforms com Attach a statement explaining the difference and print “See attached” next to line 10. Www freefilefillableforms com Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Www freefilefillableforms com If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Www freefilefillableforms com The seller must give you this number and you must give the seller your TIN. Www freefilefillableforms com A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Www freefilefillableforms com Failure to meet any of these requirements may result in a $50 penalty for each failure. Www freefilefillableforms com The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Www freefilefillableforms com If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Www freefilefillableforms com Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Www freefilefillableforms com More than one borrower. Www freefilefillableforms com   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Www freefilefillableforms com Show how much of the interest each of you paid, and give the name and address of the person who received the form. Www freefilefillableforms com Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Www freefilefillableforms com Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Www freefilefillableforms com   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Www freefilefillableforms com Let each of the other borrowers know what his or her share is. Www freefilefillableforms com Mortgage proceeds used for business or investment. Www freefilefillableforms com   If your home mortgage interest deduction is limited under the rules explained in Part II , but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 2 near the end of this publication. Www freefilefillableforms com It shows where to deduct the part of your excess interest that is for those activities. Www freefilefillableforms com The Table 1 Instructions for line 13 in Part II explain how to divide the excess interest among the activities for which the mortgage proceeds were used. Www freefilefillableforms com Special Rule for Tenant-Stockholders in Cooperative Housing Corporations A qualified home includes stock in a cooperative housing corporation owned by a tenant-stockholder. Www freefilefillableforms com This applies only if the tenant-stockholder is entitled to live in the house or apartment because of owning stock in the cooperative. Www freefilefillableforms com Cooperative housing corporation. Www freefilefillableforms com   This is a corporation that meets all of the following conditions. Www freefilefillableforms com Has only one class of stock outstanding, Has no stockholders other than those who own the stock that can live in a house, apartment, or house trailer owned or leased by the corporation, Has no stockholders who can receive any distribution out of capital other than on a liquidation of the corporation, and Meets at least one of the following requirements. Www freefilefillableforms com Receives at least 80% of its gross income for the year in which the mortgage interest is paid or incurred from tenant-stockholders. Www freefilefillableforms com For this purpose, gross income is all income received during the entire year, including amounts received before the corporation changed to cooperative ownership. Www freefilefillableforms com At all times during the year, at least 80% of the total square footage of the corporation's property is used or available for use by the tenant-stockholders for residential or residential-related use. Www freefilefillableforms com At least 90% of the corporation's expenditures paid or incurred during the year are for the acquisition, construction, management, maintenance, or care of corporate property for the benefit of the tenant-stockholders. Www freefilefillableforms com Stock used to secure debt. Www freefilefillableforms com   In some cases, you cannot use your cooperative housing stock to secure a debt because of either: Restrictions under local or state law, or Restrictions in the cooperative agreement (other than restrictions in which the main purpose is to permit the tenant- stockholder to treat unsecured debt as secured debt). Www freefilefillableforms com However, you can treat a debt as secured by the stock to the extent that the proceeds are used to buy the stock under the allocation of interest rules. Www freefilefillableforms com See chapter 4 of Publication 535 for details on these rules. Www freefilefillableforms com Figuring deductible home mortgage interest. Www freefilefillableforms com   Generally, if you are a tenant-stockholder, you can deduct payments you make for your share of the interest paid or incurred by the cooperative. Www freefilefillableforms com The interest must be on a debt to buy, build, change, improve, or maintain the cooperative's housing, or on a debt to buy the land. Www freefilefillableforms com   Figure your share of this interest by multiplying the total by the following fraction. Www freefilefillableforms com      Your shares of stock in the cooperative   The total shares of stock in the cooperative Limits on deduction. Www freefilefillableforms com   To figure how the limits discussed in Part II apply to you, treat your share of the cooperative's debt as debt incurred by you. Www freefilefillableforms com The cooperative should determine your share of its grandfathered debt, its home acquisition debt, and its home equity debt. Www freefilefillableforms com (Your share of each of these types of debt is equal to the average balance of each debt multiplied by the fraction just given. Www freefilefillableforms com ) After your share of the average balance of each type of debt is determined, you include it with the average balance of that type of debt secured by your stock. Www freefilefillableforms com Form 1098. Www freefilefillableforms com    The cooperative should give you a Form 1098 showing your share of the interest. Www freefilefillableforms com Use the rules in this publication to determine your deductible mortgage interest. Www freefilefillableforms com Part II. Www freefilefillableforms com Limits on Home Mortgage Interest Deduction This part of the publication discusses the limits on deductible home mortgage interest. Www freefilefillableforms com These limits apply to your home mortgage interest expense if you have a home mortgage that does not fit into any of the three categories listed at the beginning of Part I under Fully deductible interest . Www freefilefillableforms com Your home mortgage interest deduction is limited to the interest on the part of your home mortgage debt that is not more than your qualified loan limit. Www freefilefillableforms com This is the part of your home mortgage debt that is grandfathered debt or that is not more than the limits for home acquisition debt and home equity debt. Www freefilefillableforms com Table 1 can help you figure your qualified loan limit and your deductible home mortgage interest. Www freefilefillableforms com Home Acquisition Debt Home acquisition debt is a mortgage you took out after October 13, 1987, to buy, build, or substantially improve a qualified home (your main or second home). Www freefilefillableforms com It also must be secured by that home. Www freefilefillableforms com If the amount of your mortgage is more than the cost of the home plus the cost of any substantial improvements, only the debt that is not more than the cost of the home plus improvements qualifies as home acquisition debt. Www freefilefillableforms com The additional debt may qualify as home equity debt (discussed later). Www freefilefillableforms com Home acquisition debt limit. Www freefilefillableforms com   The total amount you can treat as home acquisition debt at any time on your main home and second home cannot be more than $1 million ($500,000 if married filing separately). Www freefilefillableforms com This limit is reduced (but not below zero) by the amount of your grandfathered debt (discussed later). Www freefilefillableforms com Debt over this limit may qualify as home equity debt (also discussed later). Www freefilefillableforms com Refinanced home acquisition debt. Www freefilefillableforms com   Any secured debt you use to refinance home acquisition debt is treated as home acquisition debt. Www freefilefillableforms com However, the new debt will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing. Www freefilefillableforms com Any additional debt not used to buy, build, or substantially improve a qualified home is not home acquisition debt, but may qualify as home equity debt (discussed later). Www freefilefillableforms com Mortgage that qualifies later. Www freefilefillableforms com   A mortgage that does not qualify as home acquisition debt because it does not meet all the requirements may qualify at a later time. Www freefilefillableforms com For example, a debt that you use to buy your home may not qualify as home acquisition debt because it is not secured by the home. Www freefilefillableforms com However, if the debt is later secured by the home, it may qualify as home acquisition debt after that time. Www freefilefillableforms com Similarly, a debt that you use to buy property may not qualify because the property is not a qualified home. Www freefilefillableforms com However, if the property later becomes a qualified home, the debt may qualify after that time. Www freefilefillableforms com Mortgage treated as used to buy, build, or improve home. Www freefilefillableforms com   A mortgage secured by a qualified home may be treated as home acquisition debt, even if you do not actually use the proceeds to buy, build, or substantially improve the home. Www freefilefillableforms com This applies in the following situations. Www freefilefillableforms com You buy your home within 90 days before or after the date you take out the mortgage. Www freefilefillableforms com The home acquisition debt is limited to the home's cost, plus the cost of any substantial improvements within the limit described below in (2) or (3). Www freefilefillableforms com (See Example 1 later. Www freefilefillableforms com ) You build or improve your home and take out the mortgage before the work is completed. Www freefilefillableforms com The home acquisition debt is limited to the amount of the expenses incurred within 24 months before the date of the mortgage. Www freefilefillableforms com You build or improve your home and take out the mortgage within 90 days after the work is completed. Www freefilefillableforms com The home acquisition debt is limited to the amount of the expenses incurred within the period beginning 24 months before the work is completed and ending on the date of the mortgage. Www freefilefillableforms com (See Example 2 later. Www freefilefillableforms com ) Example 1. Www freefilefillableforms com You bought your main home on June 3 for $175,000. Www freefilefillableforms com You paid for the home with cash you got from the sale of your old home. Www freefilefillableforms com On July 15, you took out a mortgage of $150,000 secured by your main home. Www freefilefillableforms com You used the $150,000 to invest in stocks. Www freefilefillableforms com You can treat the mortgage as taken out to buy your home because you bought the home within 90 days before you took out the mortgage. Www freefilefillableforms com The entire mortgage qualifies as home acquisition debt because it was not more than the home's cost. Www freefilefillableforms com Example 2. Www freefilefillableforms com On January 31, John began building a home on the lot that he owned. Www freefilefillableforms com He used $45,000 of his personal funds to build the home. Www freefilefillableforms com The home was completed on October 31. Www freefilefillableforms com On November 21, John took out a $36,000 mortgage that was secured by the home. Www freefilefillableforms com The mortgage can be treated as used to build the home because it was taken out within 90 days after the home was completed. Www freefilefillableforms com The entire mortgage qualifies as home acquisition debt because it was not more than the expenses incurred within the period beginning 24 months before the home was completed. Www freefilefillableforms com This is illustrated by Figure C. Www freefilefillableforms com   Please click here for the text description of the image. Www freefilefillableforms com Figure C. Www freefilefillableforms com John's example Date of the mortgage. Www freefilefillableforms com   The date you take out your mortgage is the day the loan proceeds are disbursed. Www freefilefillableforms com This is generally the closing date. Www freefilefillableforms com You can treat the day you apply in writing for your mortgage as the date you take it out. Www freefilefillableforms com However, this applies only if you receive the loan proceeds within a reasonable time (such as within 30 days) after your application is approved. Www freefilefillableforms com If a timely application you make is rejected, a reasonable additional time will be allowed to make a new application. Www freefilefillableforms com Cost of home or improvements. Www freefilefillableforms com   To determine your cost, include amounts paid to acquire any interest in a qualified home or to substantially improve the home. Www freefilefillableforms com   The cost of building or substantially improving a qualified home includes the costs to acquire real property and building materials, fees for architects and design plans, and required building permits. Www freefilefillableforms com Substantial improvement. Www freefilefillableforms com   An improvement is substantial if it: Adds to the value of your home, Prolongs your home's useful life, or Adapts your home to new uses. Www freefilefillableforms com    Repairs that maintain your home in good condition, such as repainting your home, are not substantial improvements. Www freefilefillableforms com However, if you paint your home as part of a renovation that substantially improves your qualified home, you can include the painting costs in the cost of the improvements. Www freefilefillableforms com Acquiring an interest in a home because of a divorce. Www freefilefillableforms com   If you incur debt to acquire the interest of a spouse or former spouse in a home, because of a divorce or legal separation, you can treat that debt as home acquisition debt. Www freefilefillableforms com Part of home not a qualified home. Www freefilefillableforms com    To figure your home acquisition debt, you must divide the cost of your home and improvements between the part of your home that is a qualified home and any part that is not a qualified home. Www freefilefillableforms com See Divided use of your home under Qualified Home in Part I. Www freefilefillableforms com Home Equity Debt If you took out a loan for reasons other than to buy, build, or substantially improve your home, it may qualify as home equity debt. Www freefilefillableforms com In addition, debt you incurred to buy, build, or substantially improve your home, to the extent it is more than the home acquisition debt limit (discussed earlier), may qualify as home equity debt. Www freefilefillableforms com Home equity debt is a mortgage you took out after October 13, 1987, that: Does not qualify as home acquisition debt or as grandfathered debt, and Is secured by your qualified home. Www freefilefillableforms com Example. Www freefilefillableforms com You bought your home for cash 10 years ago. Www freefilefillableforms com You did not have a mortgage on your home until last year, when you took out a $50,000 loan, secured by your home, to pay for your daughter's college tuition and your father's medical bills. Www freefilefillableforms com This loan is home equity debt. Www freefilefillableforms com Home equity debt limit. Www freefilefillableforms com   There is a limit on the amount of debt that can be treated as home equity debt. Www freefilefillableforms com The total home equity debt on your main home and second home is limited to the smaller of: $100,000 ($50,000 if married filing separately), or The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Www freefilefillableforms com Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home. Www freefilefillableforms com Example. Www freefilefillableforms com You own one home that you bought in 2000. Www freefilefillableforms com Its FMV now is $110,000, and the current balance on your original mortgage (home acquisition debt) is $95,000. Www freefilefillableforms com Bank M offers you a home mortgage loan of 125% of the FMV of the home less any outstanding mortgages or other liens. Www freefilefillableforms com To consolidate some of your other debts, you take out a $42,500 home mortgage loan [(125% × $110,000) − $95,000] with Bank M. Www freefilefillableforms com Your home equity debt is limited to $15,000. Www freefilefillableforms com This is the smaller of: $100,000, the maximum limit, or $15,000, the amount that the FMV of $110,000 exceeds the amount of home acquisition debt of $95,000. Www freefilefillableforms com Debt higher than limit. Www freefilefillableforms com   Interest on amounts over the home equity debt limit (such as the interest on $27,500 [$42,500 − $15,000] in the preceding example) generally is treated as personal interest and is not deductible. Www freefilefillableforms com But if the proceeds of the loan were used for investment, business, or other deductible purposes, the interest may be deductible. Www freefilefillableforms com If it is, see the Table 1 Instructions for line 13 for an explanation of how to allocate the excess interest. Www freefilefillableforms com Part of home not a qualified home. Www freefilefillableforms com   To figure the limit on your home equity debt, you must divide the FMV of your home between the part that is a qualified home and any part that is not a qualified home. Www freefilefillableforms com See Divided use of your home under Qualified Home in Part I. Www freefilefillableforms com Fair market value (FMV). Www freefilefillableforms com    This is the price at which the home would change hands between you and a buyer, neither having to sell or buy, and both having reasonable knowledge of all relevant facts. Www freefilefillableforms com Sales of similar homes in your area, on about the same date your last debt was secured by the home, may be helpful in figuring the FMV. Www freefilefillableforms com Grandfathered Debt If you took out a mortgage on your home before October 14, 1987, or you refinanced such a mortgage, it may qualify as grandfathered debt. Www freefilefillableforms com To qualify, it must have been secured by your qualified home on October 13, 1987, and at all times after that date. Www freefilefillableforms com How you used the proceeds does not matter. Www freefilefillableforms com Grandfathered debt is not limited. Www freefilefillableforms com All of the interest you paid on grandfathered debt is fully deductible home mortgage interest. Www freefilefillableforms com However, the amount of your grandfathered debt reduces the $1 million limit for home acquisition debt and the limit based on your home's fair market value for home equity debt. Www freefilefillableforms com Refinanced grandfathered debt. Www freefilefillableforms com   If you refinanced grandfathered debt after October 13, 1987, for an amount that was not more than the mortgage principal left on the debt, then you still treat it as grandfathered debt. Www freefilefillableforms com To the extent the new debt is more than that mortgage principal, it is treated as home acquisition or home equity debt, and the mortgage is a mixed-use mortgage (discussed later under Average Mortgage Balance in the Table 1 instructions). Www freefilefillableforms com The debt must be secured by the qualified home. Www freefilefillableforms com   You treat grandfathered debt that was refinanced after October 13, 1987, as grandfathered debt only for the term left on the debt that was refinanced. Www freefilefillableforms com After that, you treat it as home acquisition debt or home equity debt, depending on how you used the proceeds. Www freefilefillableforms com Exception. Www freefilefillableforms com   If the debt before refinancing was like a balloon note (the principal on the debt was not amortized over the term of the debt), then you treat the refinanced debt as grandfathered debt for the term of the first refinancing. Www freefilefillableforms com This term cannot be more than 30 years. Www freefilefillableforms com Example. Www freefilefillableforms com Chester took out a $200,000 first mortgage on his home in 1986. Www freefilefillableforms com The mortgage was a five-year balloon note and the entire balance on the note was due in 1991. Www freefilefillableforms com Chester refinanced the debt in 1991 with a new 20-year mortgage. Www freefilefillableforms com The refinanced debt is treated as grandfathered debt for its entire term (20 years). Www freefilefillableforms com Line-of-credit mortgage. Www freefilefillableforms com    If you had a line-of-credit mortgage on October 13, 1987, and borrowed additional amounts against it after that date, then the additional amounts are either home acquisition debt or home equity debt depending on how you used the proceeds. Www freefilefillableforms com The balance on the mortgage before you borrowed the additional amounts is grandfathered debt. Www freefilefillableforms com The newly borrowed amounts are not grandfathered debt because the funds were borrowed after October 13, 1987. Www freefilefillableforms com See Average Mortgage Balance in the Table 1 Instructions that follow. Www freefilefillableforms com Table 1 Instructions Unless you are subject to the overall limit on itemized deductions, you can deduct all of the interest you paid during the year on mortgages secured by your main home or second home in either of the following two situations. Www freefilefillableforms com All the mortgages are grandfathered debt. Www freefilefillableforms com The total of the mortgage balances for the entire year is within the limits discussed earlier under Home Acquisition Debt and Home Equity Debt . Www freefilefillableforms com In either of those cases, you do not need Table 1. Www freefilefillableforms com Otherwise, you can use Table 1 to determine your qualified loan limit and deductible home mortgage interest. Www freefilefillableforms com Fill out only one Table 1 for both your main and second home regardless of how many mortgages you have. Www freefilefillableforms com Table 1. Www freefilefillableforms com Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Www freefilefillableforms com Part I Qualified Loan Limit 1. Www freefilefillableforms com Enter the average balance of all your grandfathered debt. Www freefilefillableforms com See line 1 instructions 1. Www freefilefillableforms com   2. Www freefilefillableforms com Enter the average balance of all your home acquisition debt. Www freefilefillableforms com See line 2 instructions 2. Www freefilefillableforms com   3. Www freefilefillableforms com Enter $1,000,000 ($500,000 if married filing separately) 3. Www freefilefillableforms com   4. Www freefilefillableforms com Enter the larger of the amount on line 1 or the amount on line 3 4. Www freefilefillableforms com   5. Www freefilefillableforms com Add the amounts on lines 1 and 2. Www freefilefillableforms com Enter the total here 5. Www freefilefillableforms com   6. Www freefilefillableforms com Enter the smaller of the amount on line 4 or the amount on line 5 6. Www freefilefillableforms com   7. Www freefilefillableforms com If you have home equity debt, enter the smaller of $100,000 ($50,000 if married filing separately) or your limited amount. Www freefilefillableforms com See the line 7 instructions for the limit which may apply to you. Www freefilefillableforms com 7. Www freefilefillableforms com   8. Www freefilefillableforms com Add the amounts on lines 6 and 7. Www freefilefillableforms com Enter the total. Www freefilefillableforms com This is your qualified loan limit. Www freefilefillableforms com 8. Www freefilefillableforms com   Part II Deductible Home Mortgage Interest 9. Www freefilefillableforms com Enter the total of the average balances of all mortgages on all qualified homes. Www freefilefillableforms com  See line 9 instructions 9. Www freefilefillableforms com     If line 8 is less than line 9, go on to line 10. Www freefilefillableforms com If line 8 is equal to or more than line 9, stop here. Www freefilefillableforms com All of your interest on all the mortgages included on line 9 is deductible as home mortgage interest on Schedule A (Form 1040). Www freefilefillableforms com     10. Www freefilefillableforms com Enter the total amount of interest that you paid. Www freefilefillableforms com See line 10 instructions 10. Www freefilefillableforms com   11. Www freefilefillableforms com Divide the amount on line 8 by the amount on line 9. Www freefilefillableforms com Enter the result as a decimal amount (rounded to three places) 11. Www freefilefillableforms com × . Www freefilefillableforms com 12. Www freefilefillableforms com Multiply the amount on line 10 by the decimal amount on line 11. Www freefilefillableforms com Enter the result. Www freefilefillableforms com This is your deductible home mortgage interest. Www freefilefillableforms com Enter this amount on Schedule A (Form 1040) 12. Www freefilefillableforms com   13. Www freefilefillableforms com Subtract the amount on line 12 from the amount on line 10. Www freefilefillableforms com Enter the result. Www freefilefillableforms com This is not home mortgage interest. Www freefilefillableforms com See line 13 instructions 13. Www freefilefillableforms com   Home equity debt only. Www freefilefillableforms com   If all of your mortgages are home equity debt, do not fill in lines 1 through 5. Www freefilefillableforms com Enter zero on line 6 and complete the rest of Table 1. Www freefilefillableforms com Average Mortgage Balance You have to figure the average balance of each mortgage to determine your qualified loan limit. Www freefilefillableforms com You need these amounts to complete lines 1, 2, and 9 of Table 1. Www freefilefillableforms com You can use the highest mortgage balances during the year, but you may benefit most by using the average balances. Www freefilefillableforms com The following are methods you can use to figure your average mortgage balances. Www freefilefillableforms com However, if a mortgage has more than one category of debt, see Mixed-use mortgages , later, in this section. Www freefilefillableforms com Average of first and last balance method. Www freefilefillableforms com   You can use this method if all the following apply. Www freefilefillableforms com You did not borrow any new amounts on the mortgage during the year. Www freefilefillableforms com (This does not include borrowing the original mortgage amount. Www freefilefillableforms com ) You did not prepay more than one month's principal during the year. Www freefilefillableforms com (This includes prepayment by refinancing your home or by applying proceeds from its sale. Www freefilefillableforms com ) You had to make level payments at fixed equal intervals on at least a semi-annual basis. Www freefilefillableforms com You treat your payments as level even if they were adjusted from time to time because of changes in the interest rate. Www freefilefillableforms com    To figure your average balance, complete the following worksheet. Www freefilefillableforms com    1. Www freefilefillableforms com Enter the balance as of the first day of the year that the mortgage was secured by your qualified home during the year (generally January 1)   2. Www freefilefillableforms com Enter the balance as of the last day of the year that the mortgage was secured by your qualified home during the year (generally December 31)   3. Www freefilefillableforms com Add amounts on lines 1 and 2   4. Www freefilefillableforms com Divide the amount on line 3 by 2. Www freefilefillableforms com Enter the result   Interest paid divided by interest rate method. Www freefilefillableforms com   You can use this method if at all times in 2013 the mortgage was secured by your qualified home and the interest was paid at least monthly. Www freefilefillableforms com    Complete the following worksheet to figure your average balance. Www freefilefillableforms com    1. Www freefilefillableforms com Enter the interest paid in 2013. Www freefilefillableforms com Do not include points, mortgage insurance premiums, or any interest paid in 2013 that is for a year after 2013. Www freefilefillableforms com However, do include interest that is for 2013 but was paid in an earlier year   2. Www freefilefillableforms com Enter the annual interest rate on the mortgage. Www freefilefillableforms com If the interest rate varied in 2013, use the lowest rate for the year   3. Www freefilefillableforms com Divide the amount on line 1 by the amount on line 2. Www freefilefillableforms com Enter the result   Example. Www freefilefillableforms com Mr. Www freefilefillableforms com Blue had a line of credit secured by his main home all year. Www freefilefillableforms com He paid interest of $2,500 on this loan. Www freefilefillableforms com The interest rate on the loan was 9% (. Www freefilefillableforms com 09) all year. Www freefilefillableforms com His average balance using this method is $27,778, figured as follows. Www freefilefillableforms com 1. Www freefilefillableforms com Enter the interest paid in 2013. Www freefilefillableforms com Do not include points, mortgage insurance premiums, or any interest paid in 2013 that is for a year after 2013. Www freefilefillableforms com However, do include interest that is for 2013 but was paid in an earlier year $2,500 2. Www freefilefillableforms com Enter the annual interest rate on the mortgage. Www freefilefillableforms com If the interest rate varied in 2013, use the lowest rate for the year . Www freefilefillableforms com 09 3. Www freefilefillableforms com Divide the amount on line 1 by the amount on line 2. Www freefilefillableforms com Enter the result $27,778 Statements provided by your lender. Www freefilefillableforms com   If you receive monthly statements showing the closing balance or the average balance for the month, you can use either to figure your average balance for the year. Www freefilefillableforms com You can treat the balance as zero for any month the mortgage was not secured by your qualified home. Www freefilefillableforms com   For each mortgage, figure your average balance by adding your monthly closing or average balances and dividing that total by the number of months the home secured by that mortgage was a qualified home during the year. Www freefilefillableforms com   If your lender can give you your average balance for the year, you can use that amount. Www freefilefillableforms com Example. Www freefilefillableforms com Ms. Www freefilefillableforms com Brown had a home equity loan secured by her main home all year. Www freefilefillableforms com She received monthly statements showing her average balance for each month. Www freefilefillableforms com She can figure her average balance for the year by adding her monthly average balances and dividing the total by 12. Www freefilefillableforms com Mixed-use mortgages. Www freefilefillableforms com   A mixed-use mortgage is a loan that consists of more than one of the three categories of debt (grandfathered debt, home acquisition debt, and home equity debt). Www freefilefillableforms com For example, a mortgage you took out during the year is a mixed-use mortgage if you used its proceeds partly to refinance a mortgage that you took out in an earlier year to buy your home (home acquisition debt) and partly to buy a car (home equity debt). Www freefilefillableforms com   Complete lines 1 and 2 of Table 1 by including the separate average balances of any grandfathered debt and home acquisition debt in your mixed-use mortgage. Www freefilefillableforms com Do not use the methods described earlier in this section to figure the average balance of either category. Www freefilefillableforms com Instead, for each category, use the following method. Www freefilefillableforms com Figure the balance of that category of debt for each month. Www freefilefillableforms com This is the amount of the loan proceeds allocated to that category, reduced by your principal payments on the mortgage previously applied to that category. Www freefilefillableforms com Principal payments on a mixed-use mortgage are applied in full to each category of debt, until its balance is zero, in the following order: First, any home equity debt, Next, any grandfathered debt, and Finally, any home acquisition debt. Www freefilefillableforms com Add together the monthly balances figured in (1). Www freefilefillableforms com Divide the result in (2) by 12. Www freefilefillableforms com   Complete line 9 of Table 1 by including the average balance of the entire mixed-use mortgage, figured under one of the methods described earlier in this section. Www freefilefillableforms com Example 1. Www freefilefillableforms com In 1986, Sharon took out a $1,400,000 mortgage to buy her main home (grandfathered debt). Www freefilefillableforms com On March 2, 2013, when the home had a fair market value of $1,700,000 and she owed $1,100,000 on the mortgage, Sharon took out a second mortgage for $200,000. Www freefilefillableforms com She used $180,000 of the proceeds to make substantial improvements to her home (home acquisition debt) and the remaining $20,000 to buy a car (home equity debt). Www freefilefillableforms com Under the loan agreement, Sharon must make principal payments of $1,000 at the end of each month. Www freefilefillableforms com During 2013, her principal payments on the second mortgage totaled $10,000. Www freefilefillableforms com To complete Table 1, line 2, Sharon must figure a separate average balance for the part of her second mortgage that is home acquisition debt. Www freefilefillableforms com The January and February balances were zero. Www freefilefillableforms com The March through December balances were all $180,000, because none of her principal payments are applied to the home acquisition debt. Www freefilefillableforms com (They are all applied to the home equity debt, reducing it to $10,000 [$20,000 − $10,000]. Www freefilefillableforms com ) The monthly balances of the home acquisition debt total $1,800,000 ($180,000 × 10). Www freefilefillableforms com Therefore, the average balance of the home acquisition debt for 2013 was $150,000 ($1,800,000 ÷ 12). Www freefilefillableforms com Example 2. Www freefilefillableforms com The facts are the same as in Example 1. Www freefilefillableforms com In 2014, Sharon's January through October principal payments on her second mortgage are applied to the home equity debt, reducing it to zero. Www freefilefillableforms com The balance of the home acquisition debt remains $180,000 for each of those months. Www freefilefillableforms com Because her November and December principal payments are applied to the home acquisition debt, the November balance is $179,000 ($180,000 − $1,000) and the December balance is $178,000 ($180,000 − $2,000). Www freefilefillableforms com The monthly balances total $2,157,000 [($180,000 × 10) + $179,000 + $178,000]. Www freefilefillableforms com Therefore, the average balance of the home acquisition debt for 2014 is $179,750 ($2,157,000 ÷ 12). Www freefilefillableforms com L
Español

Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Nebraska Office of the Attorney General

Website: Nebraska Office of the Attorney General

Address: Nebraska Office of the Attorney General
Consumer Protection Division
2115 State Capitol
Lincoln, NE 68509

Phone Number: 402-471-2682

Toll-free: 1-800-727-6432 (NE) 1-888-850-7555 (in Spanish)

Back to Top

Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking and Finance

Website: Department of Banking and Finance

Address: Department of Banking and Finance
PO Box 95006
Lincoln, NE 68509-5006

Phone Number: 402-471-2171

Toll-free: 1-877-471-3445

Back to Top

Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
PO Box 82089
Lincoln, NE 68501-2089

Phone Number: 402-471-2201

Toll-free: 1-877-564-7323 (NE)

TTY: 1-800-833-7352

Back to Top

Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Banking and Finance

Website: Department of Banking and Finance

Address: Department of Banking and Finance
Bureau of Securities
PO Box 95006
Lincoln, NE 68509-5006

Phone Number: 402-471-3445

Toll-free: 1-877-471-3445

Back to Top

Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
1200 N St., Suite 300
Lincoln, NE 68508

Phone Number: 402-471-3101

Toll-free: 1-800-526-0017 (NE)

TTY: 402-471-0213

Back to Top

The Www Freefilefillableforms Com

Www freefilefillableforms com Publication 519 - Additional Material Table of Contents Appendix A—Tax Treaty Exemption Procedure for StudentsBelgium Bulgaria China, People's Republic of Cyprus Czech Republic, Estonia, Latvia, Lithuania, and Slovak Republic Egypt France Germany Iceland Indonesia Israel, Philippines and Thailand Korea, Norway, Poland, and Romania Morocco Netherlands Pakistan Portugal and Spain Slovenia and Venezuela Trinidad and Tobago Tunisia Appendix B—Tax Treaty Exemption Procedure for Teachers and ResearchersBelgium Bulgaria China, People's Republic of Commonwealth of Independent States Czech Republic and Slovak Republic Egypt, Hungary, Korea, Philippines, Poland, and Romania France Germany Greece India Indonesia Israel Italy Jamaica Luxembourg Netherlands Norway Pakistan Portugal Slovenia and Venezuela Thailand Trinidad and Tobago United Kingdom Frequently Asked Questions This section answers tax-related questions commonly asked by aliens. Www freefilefillableforms com . Www freefilefillableforms com What is the difference between a resident alien and a nonresident alien for tax purposes? . Www freefilefillableforms com What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? . Www freefilefillableforms com I am a student with an F-1 Visa. Www freefilefillableforms com I was told that I was an exempt individual. Www freefilefillableforms com Does this mean I am exempt from paying U. Www freefilefillableforms com S. Www freefilefillableforms com tax? . Www freefilefillableforms com I am a resident alien. Www freefilefillableforms com Can I claim any treaty benefits? . Www freefilefillableforms com I am a nonresident alien with no dependents. Www freefilefillableforms com I am working temporarily for a U. Www freefilefillableforms com S. Www freefilefillableforms com company. Www freefilefillableforms com What return do I file? . Www freefilefillableforms com I came to the United States on June 30th of last year. Www freefilefillableforms com I have an H-1B Visa. Www freefilefillableforms com What is my tax status, resident alien or nonresident alien? What tax return do I file? . Www freefilefillableforms com When is my Form 1040NR due? . Www freefilefillableforms com My spouse is a nonresident alien. Www freefilefillableforms com Does he need a social security number? . Www freefilefillableforms com I am a nonresident alien. Www freefilefillableforms com Can I file a joint return with my spouse? . Www freefilefillableforms com I have an H-1B Visa and my husband has an F-1 Visa. Www freefilefillableforms com We both lived in the United States all of last year and had income. Www freefilefillableforms com What kind of form should we file? Do we file separate returns or a joint return? . Www freefilefillableforms com Is a dual-resident taxpayer the same as a dual-status taxpayer? . Www freefilefillableforms com I am a nonresident alien and invested money in the U. Www freefilefillableforms com S. Www freefilefillableforms com stock market through a U. Www freefilefillableforms com S. Www freefilefillableforms com brokerage company. Www freefilefillableforms com Are the dividends and the capital gains taxable? If yes, how are they taxed? . Www freefilefillableforms com I am a nonresident alien. Www freefilefillableforms com I receive U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits. Www freefilefillableforms com Are my benefits taxable? . Www freefilefillableforms com Do I have to pay taxes on my scholarship? . Www freefilefillableforms com I am a nonresident alien. Www freefilefillableforms com Can I claim the standard deduction? . Www freefilefillableforms com I am a dual-status taxpayer. Www freefilefillableforms com Can I claim the standard deduction? . Www freefilefillableforms com I am filing Form 1040NR. Www freefilefillableforms com Can I claim itemized deductions? . Www freefilefillableforms com I am not a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen. Www freefilefillableforms com What exemptions can I claim? . Www freefilefillableforms com What exemptions can I claim as a dual-status taxpayer? . Www freefilefillableforms com I am single with a dependent child. Www freefilefillableforms com I was a dual-status alien in 2013. Www freefilefillableforms com Can I claim the earned income credit on my 2013 tax return? . Www freefilefillableforms com I am a nonresident alien student. Www freefilefillableforms com Can I claim an education credit on my Form 1040NR? . Www freefilefillableforms com I am a nonresident alien, temporarily working in the U. Www freefilefillableforms com S. Www freefilefillableforms com under a J visa. Www freefilefillableforms com Am I subject to social security and Medicare taxes? . Www freefilefillableforms com I am a nonresident alien student. Www freefilefillableforms com Social security taxes were withheld from my pay in error. Www freefilefillableforms com How do I get a refund of these taxes? . Www freefilefillableforms com I am an alien who will be leaving the United States. Www freefilefillableforms com What forms do I have to file before I leave? . Www freefilefillableforms com I filed a Form 1040-C when I left the United States. Www freefilefillableforms com Do I still have to file an annual U. Www freefilefillableforms com S. Www freefilefillableforms com tax return? . Www freefilefillableforms com What is the difference between a resident alien and a nonresident alien for tax purposes? For tax purposes, an alien is an individual who is not a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen. Www freefilefillableforms com Aliens are classified as resident aliens and nonresident aliens. Www freefilefillableforms com Resident aliens are taxed on their worldwide income, the same as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com Nonresident aliens are taxed only on their U. Www freefilefillableforms com S. Www freefilefillableforms com source income and certain foreign source income that is effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Www freefilefillableforms com These are the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Www freefilefillableforms com The term “exempt individual” does not refer to someone exempt from U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Www freefilefillableforms com See chapter 1 . Www freefilefillableforms com Generally, you cannot claim tax treaty benefits as a resident alien. Www freefilefillableforms com However, there are exceptions. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Www freefilefillableforms com You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Www freefilefillableforms com S. Www freefilefillableforms com source income on which tax was not fully paid by the amount withheld. Www freefilefillableforms com You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Www freefilefillableforms com You were a dual-status alien last year. Www freefilefillableforms com As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Www freefilefillableforms com However, for the part of the year that you were not present in the United States, you are a nonresident. Www freefilefillableforms com File Form 1040. Www freefilefillableforms com Print “Dual-Status Return” across the top. Www freefilefillableforms com Attach a statement showing your U. Www freefilefillableforms com S. Www freefilefillableforms com source income for the part of the year you were a nonresident. Www freefilefillableforms com You may use Form 1040NR as the statement. Www freefilefillableforms com Print “Dual-Status Statement” across the top. Www freefilefillableforms com See First Year of Residency in chapter 1 for rules on determining your residency starting date. Www freefilefillableforms com If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Www freefilefillableforms com See Social Security and Medicare Taxes in chapter 8. Www freefilefillableforms com If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Www freefilefillableforms com If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Www freefilefillableforms com Do not use Form 843 to request a refund of Additional Medicare Tax. Www freefilefillableforms com See Refund of Taxes Withheld in Error in chapter 8. Www freefilefillableforms com Before leaving the United States, aliens generally must obtain a certificate of compliance. Www freefilefillableforms com This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Www freefilefillableforms com You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Www freefilefillableforms com These forms are discussed in chapter 11. Www freefilefillableforms com Form 1040-C is not an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Www freefilefillableforms com Chapters 5 and 7 discuss filing an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com . Www freefilefillableforms com What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Www freefilefillableforms com These are the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Www freefilefillableforms com The term “exempt individual” does not refer to someone exempt from U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Www freefilefillableforms com See chapter 1 . Www freefilefillableforms com Generally, you cannot claim tax treaty benefits as a resident alien. Www freefilefillableforms com However, there are exceptions. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Www freefilefillableforms com You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Www freefilefillableforms com S. Www freefilefillableforms com source income on which tax was not fully paid by the amount withheld. Www freefilefillableforms com You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Www freefilefillableforms com You were a dual-status alien last year. Www freefilefillableforms com As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Www freefilefillableforms com However, for the part of the year that you were not present in the United States, you are a nonresident. Www freefilefillableforms com File Form 1040. Www freefilefillableforms com Print “Dual-Status Return” across the top. Www freefilefillableforms com Attach a statement showing your U. Www freefilefillableforms com S. Www freefilefillableforms com source income for the part of the year you were a nonresident. Www freefilefillableforms com You may use Form 1040NR as the statement. Www freefilefillableforms com Print “Dual-Status Statement” across the top. Www freefilefillableforms com See First Year of Residency in chapter 1 for rules on determining your residency starting date. Www freefilefillableforms com If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Www freefilefillableforms com See Social Security and Medicare Taxes in chapter 8. Www freefilefillableforms com If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Www freefilefillableforms com If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Www freefilefillableforms com Do not use Form 843 to request a refund of Additional Medicare Tax. Www freefilefillableforms com See Refund of Taxes Withheld in Error in chapter 8. Www freefilefillableforms com Before leaving the United States, aliens generally must obtain a certificate of compliance. Www freefilefillableforms com This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Www freefilefillableforms com You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Www freefilefillableforms com These forms are discussed in chapter 11. Www freefilefillableforms com Form 1040-C is not an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Www freefilefillableforms com Chapters 5 and 7 discuss filing an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com . Www freefilefillableforms com I am a student with an F-1 Visa. Www freefilefillableforms com I was told that I was an exempt individual. Www freefilefillableforms com Does this mean I am exempt from paying U. Www freefilefillableforms com S. Www freefilefillableforms com tax? The term “exempt individual” does not refer to someone exempt from U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Www freefilefillableforms com See chapter 1 . Www freefilefillableforms com Generally, you cannot claim tax treaty benefits as a resident alien. Www freefilefillableforms com However, there are exceptions. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Www freefilefillableforms com You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Www freefilefillableforms com S. Www freefilefillableforms com source income on which tax was not fully paid by the amount withheld. Www freefilefillableforms com You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Www freefilefillableforms com You were a dual-status alien last year. Www freefilefillableforms com As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Www freefilefillableforms com However, for the part of the year that you were not present in the United States, you are a nonresident. Www freefilefillableforms com File Form 1040. Www freefilefillableforms com Print “Dual-Status Return” across the top. Www freefilefillableforms com Attach a statement showing your U. Www freefilefillableforms com S. Www freefilefillableforms com source income for the part of the year you were a nonresident. Www freefilefillableforms com You may use Form 1040NR as the statement. Www freefilefillableforms com Print “Dual-Status Statement” across the top. Www freefilefillableforms com See First Year of Residency in chapter 1 for rules on determining your residency starting date. Www freefilefillableforms com If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Www freefilefillableforms com See Social Security and Medicare Taxes in chapter 8. Www freefilefillableforms com If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Www freefilefillableforms com If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Www freefilefillableforms com Do not use Form 843 to request a refund of Additional Medicare Tax. Www freefilefillableforms com See Refund of Taxes Withheld in Error in chapter 8. Www freefilefillableforms com Before leaving the United States, aliens generally must obtain a certificate of compliance. Www freefilefillableforms com This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Www freefilefillableforms com You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Www freefilefillableforms com These forms are discussed in chapter 11. Www freefilefillableforms com Form 1040-C is not an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Www freefilefillableforms com Chapters 5 and 7 discuss filing an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com . Www freefilefillableforms com I am a resident alien. Www freefilefillableforms com Can I claim any treaty benefits? Generally, you cannot claim tax treaty benefits as a resident alien. Www freefilefillableforms com However, there are exceptions. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Www freefilefillableforms com You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Www freefilefillableforms com S. Www freefilefillableforms com source income on which tax was not fully paid by the amount withheld. Www freefilefillableforms com You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Www freefilefillableforms com You were a dual-status alien last year. Www freefilefillableforms com As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Www freefilefillableforms com However, for the part of the year that you were not present in the United States, you are a nonresident. Www freefilefillableforms com File Form 1040. Www freefilefillableforms com Print “Dual-Status Return” across the top. Www freefilefillableforms com Attach a statement showing your U. Www freefilefillableforms com S. Www freefilefillableforms com source income for the part of the year you were a nonresident. Www freefilefillableforms com You may use Form 1040NR as the statement. Www freefilefillableforms com Print “Dual-Status Statement” across the top. Www freefilefillableforms com See First Year of Residency in chapter 1 for rules on determining your residency starting date. Www freefilefillableforms com If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Www freefilefillableforms com See Social Security and Medicare Taxes in chapter 8. Www freefilefillableforms com If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Www freefilefillableforms com If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Www freefilefillableforms com Do not use Form 843 to request a refund of Additional Medicare Tax. Www freefilefillableforms com See Refund of Taxes Withheld in Error in chapter 8. Www freefilefillableforms com Before leaving the United States, aliens generally must obtain a certificate of compliance. Www freefilefillableforms com This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Www freefilefillableforms com You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Www freefilefillableforms com These forms are discussed in chapter 11. Www freefilefillableforms com Form 1040-C is not an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Www freefilefillableforms com Chapters 5 and 7 discuss filing an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com . Www freefilefillableforms com I am a nonresident alien with no dependents. Www freefilefillableforms com I am working temporarily for a U. Www freefilefillableforms com S. Www freefilefillableforms com company. Www freefilefillableforms com What return do I file? You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Www freefilefillableforms com S. Www freefilefillableforms com source income on which tax was not fully paid by the amount withheld. Www freefilefillableforms com You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Www freefilefillableforms com You were a dual-status alien last year. Www freefilefillableforms com As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Www freefilefillableforms com However, for the part of the year that you were not present in the United States, you are a nonresident. Www freefilefillableforms com File Form 1040. Www freefilefillableforms com Print “Dual-Status Return” across the top. Www freefilefillableforms com Attach a statement showing your U. Www freefilefillableforms com S. Www freefilefillableforms com source income for the part of the year you were a nonresident. Www freefilefillableforms com You may use Form 1040NR as the statement. Www freefilefillableforms com Print “Dual-Status Statement” across the top. Www freefilefillableforms com See First Year of Residency in chapter 1 for rules on determining your residency starting date. Www freefilefillableforms com If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Www freefilefillableforms com See Social Security and Medicare Taxes in chapter 8. Www freefilefillableforms com If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Www freefilefillableforms com If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Www freefilefillableforms com Do not use Form 843 to request a refund of Additional Medicare Tax. Www freefilefillableforms com See Refund of Taxes Withheld in Error in chapter 8. Www freefilefillableforms com Before leaving the United States, aliens generally must obtain a certificate of compliance. Www freefilefillableforms com This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Www freefilefillableforms com You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Www freefilefillableforms com These forms are discussed in chapter 11. Www freefilefillableforms com Form 1040-C is not an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Www freefilefillableforms com Chapters 5 and 7 discuss filing an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com . Www freefilefillableforms com I came to the United States on June 30th of last year. Www freefilefillableforms com I have an H-1B Visa. Www freefilefillableforms com What is my tax status, resident alien or nonresident alien? What tax return do I file? You were a dual-status alien last year. Www freefilefillableforms com As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Www freefilefillableforms com However, for the part of the year that you were not present in the United States, you are a nonresident. Www freefilefillableforms com File Form 1040. Www freefilefillableforms com Print “Dual-Status Return” across the top. Www freefilefillableforms com Attach a statement showing your U. Www freefilefillableforms com S. Www freefilefillableforms com source income for the part of the year you were a nonresident. Www freefilefillableforms com You may use Form 1040NR as the statement. Www freefilefillableforms com Print “Dual-Status Statement” across the top. Www freefilefillableforms com See First Year of Residency in chapter 1 for rules on determining your residency starting date. Www freefilefillableforms com If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Www freefilefillableforms com See Social Security and Medicare Taxes in chapter 8. Www freefilefillableforms com If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Www freefilefillableforms com If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Www freefilefillableforms com Do not use Form 843 to request a refund of Additional Medicare Tax. Www freefilefillableforms com See Refund of Taxes Withheld in Error in chapter 8. Www freefilefillableforms com Before leaving the United States, aliens generally must obtain a certificate of compliance. Www freefilefillableforms com This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Www freefilefillableforms com You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Www freefilefillableforms com These forms are discussed in chapter 11. Www freefilefillableforms com Form 1040-C is not an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Www freefilefillableforms com Chapters 5 and 7 discuss filing an annual U. Www freefilefillableforms com S. Www freefilefillableforms com income tax return. Www freefilefillableforms com . Www freefilefillableforms com When is my Form 1040NR due? If you are an employee and you receive wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Www freefilefillableforms com If you file for the 2013 calendar year, your return is due April 15, 2014. Www freefilefillableforms com If you are not an employee who receives wages subject to U. Www freefilefillableforms com S. Www freefilefillableforms com income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www freefilefillableforms com For the 2013 calendar year, file your return by June 16, 2014. Www freefilefillableforms com For more information on when and where to file, see chapter 7 . Www freefilefillableforms com A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Www freefilefillableforms com If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Www freefilefillableforms com If you are a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Www freefilefillableforms com Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Www freefilefillableforms com See Identification Number in chapter 5 for more information. Www freefilefillableforms com Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Www freefilefillableforms com However, nonresident aliens married to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens or residents can choose to be treated as U. Www freefilefillableforms com S. Www freefilefillableforms com residents and file joint returns. Www freefilefillableforms com For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Assuming both of you had these visas for all of last year, you are a resident alien. Www freefilefillableforms com Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Www freefilefillableforms com You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Www freefilefillableforms com Your husband must file Form 1040NR or 1040NR-EZ. Www freefilefillableforms com No. Www freefilefillableforms com A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Www freefilefillableforms com See Effect of Tax Treaties in chapter 1. Www freefilefillableforms com You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Www freefilefillableforms com See chapter 6 . Www freefilefillableforms com The following rules apply if the dividends and capital gains are not effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Www freefilefillableforms com See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Www freefilefillableforms com Dividends are generally taxed at a 30% (or lower treaty) rate. Www freefilefillableforms com The brokerage company or payor of the dividends should withhold this tax at source. Www freefilefillableforms com If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Www freefilefillableforms com If the capital gains and dividends are effectively connected with a U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business, they are taxed according to the same rules and at the same rates that apply to U. Www freefilefillableforms com S. Www freefilefillableforms com citizens and residents. Www freefilefillableforms com If you are a nonresident alien, 85% of any U. Www freefilefillableforms com S. Www freefilefillableforms com social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Www freefilefillableforms com See The 30% Tax in chapter 4. Www freefilefillableforms com If you are a nonresident alien and the scholarship is not from U. Www freefilefillableforms com S. Www freefilefillableforms com sources, it is not subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax. Www freefilefillableforms com See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources. Www freefilefillableforms com If your scholarship is from U. Www freefilefillableforms com S. Www freefilefillableforms com sources or you are a resident alien, your scholarship is subject to U. Www freefilefillableforms com S. Www freefilefillableforms com tax according to the following rules. Www freefilefillableforms com If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Www freefilefillableforms com However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Www freefilefillableforms com See Scholarships and Fellowship Grants in chapter 3 for more information. Www freefilefillableforms com If you are not a candidate for a degree, your scholarship is taxable. Www freefilefillableforms com Nonresident aliens cannot claim the standard deduction. Www freefilefillableforms com However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Www freefilefillableforms com You cannot claim the standard deduction allowed on Form 1040. Www freefilefillableforms com However, you can itemize any allowable deductions. Www freefilefillableforms com Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Www freefilefillableforms com However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Www freefilefillableforms com S. Www freefilefillableforms com trade or business. Www freefilefillableforms com See Itemized Deductions in chapter 5. Www freefilefillableforms com Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Www freefilefillableforms com S. Www freefilefillableforms com citizens. Www freefilefillableforms com However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Www freefilefillableforms com S. Www freefilefillableforms com tax return. Www freefilefillableforms com There are special rules for residents of Mexico, Canada, and South Korea; for U. Www freefilefillableforms com S. Www freefilefillableforms com nationals; and for students and business apprentices from India. Www freefilefillableforms com See Exemptions in chapter 5. Www freefilefillableforms com As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Www freefilefillableforms com Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Www freefilefillableforms com The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Www freefilefillableforms com You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Www freefilefillableforms com See chapter 6 for more information on dual-status aliens. Www freefilefillableforms com If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Www freefilefillableforms com However, if you are married and choose to file a joint return with a U. Www freefilefillableforms com S. Www freefilefillableforms com citizen or resident spouse, you may be eligible for these credits. Www freefilefillableforms com See Nonresident Spouse Treated as a Resident in chapter 1. Www freefilefillableforms com Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose