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1040a Form

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1040a Form

1040a form 4. 1040a form   Foreign Earned Income and Housing: Exclusion – Deduction Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Who Qualifies for the Exclusions and the Deduction? RequirementsTax Home in Foreign Country Bona Fide Residence Test Physical Presence Test Waiver of Time Requirements U. 1040a form S. 1040a form Travel Restrictions Foreign Earned Income Foreign Earned Income ExclusionLimit on Excludable Amount Choosing the Exclusion Foreign Housing Exclusion and DeductionHousing Amount Foreign Housing Exclusion Foreign Housing Deduction Married Couples Form 2555 and Form 2555-EZForm 2555-EZ Form 2555 Topics - This chapter discusses: Who qualifies for the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, The requirements that must be met to claim either exclusion or the deduction, How to figure the foreign earned income exclusion, and How to figure the foreign housing exclusion and the foreign housing deduction. 1040a form Useful Items - You may want to see: Publication 519 U. 1040a form S. 1040a form Tax Guide for Aliens 570 Tax Guide for Individuals With Income from U. 1040a form S. 1040a form Possessions 596 Earned Income Credit (EIC) Form (and Instructions) 1040X Amended U. 1040a form S. 1040a form Individual Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion See chapter 7 for information about getting these publications and forms. 1040a form Who Qualifies for the Exclusions and the Deduction? If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction. 1040a form If you are a U. 1040a form S. 1040a form citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. 1040a form However, you may qualify to exclude from income up to $97,600 of your foreign earnings. 1040a form In addition, you can exclude or deduct certain foreign housing amounts. 1040a form See Foreign Earned Income Exclusion and Foreign Housing Exclusion and Deduction, later. 1040a form You also may be entitled to exclude from income the value of meals and lodging provided to you by your employer. 1040a form See Exclusion of Meals and Lodging, later. 1040a form Requirements To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all three of the following requirements. 1040a form Your tax home must be in a foreign country. 1040a form You must have foreign earned income. 1040a form You must be one of the following. 1040a form A U. 1040a form S. 1040a form citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. 1040a form A U. 1040a form S. 1040a form resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. 1040a form A U. 1040a form S. 1040a form citizen or a U. 1040a form S. 1040a form resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. 1040a form See Publication 519 to find out if you are a U. 1040a form S. 1040a form resident alien for tax purposes and whether you keep that alien status when you temporarily work abroad. 1040a form If you are a nonresident alien married to a U. 1040a form S. 1040a form citizen or resident alien, and both you and your spouse choose to treat you as a resident alien, you are a resident alien for tax purposes. 1040a form For information on making the choice, see the discussion in chapter 1 under Nonresident Alien Spouse Treated as a Resident . 1040a form Waiver of minimum time requirements. 1040a form   The minimum time requirements for bona fide residence and physical presence can be waived if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. 1040a form This is fully explained under Waiver of Time Requirements , later. 1040a form   See Figure 4-A and information in this chapter to determine if you are eligible to claim either exclusion or the deduction. 1040a form Tax Home in Foreign Country To qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, your tax home must be in a foreign country throughout your period of bona fide residence or physical presence abroad. 1040a form Bona fide residence and physical presence are explained later. 1040a form Tax Home Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. 1040a form Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. 1040a form Having a “tax home” in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes. 1040a form If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. 1040a form If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work. 1040a form You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States. 1040a form However, your abode is not necessarily in the United States while you are temporarily in the United States. 1040a form Your abode is also not necessarily in the United States merely because you maintain a dwelling in the United States, whether or not your spouse or dependents use the dwelling. 1040a form “Abode” has been variously defined as one's home, habitation, residence, domicile, or place of dwelling. 1040a form It does not mean your principal place of business. 1040a form “Abode” has a domestic rather than a vocational meaning and does not mean the same as “tax home. 1040a form ” The location of your abode often will depend on where you maintain your economic, family, and personal ties. 1040a form Example 1. 1040a form You are employed on an offshore oil rig in the territorial waters of a foreign country and work a 28-day on/28-day off schedule. 1040a form You return to your family residence in the United States during your off periods. 1040a form You are considered to have an abode in the United States and do not satisfy the tax home test in the foreign country. 1040a form You cannot claim either of the exclusions or the housing deduction. 1040a form Example 2. 1040a form For several years, you were a marketing executive with a producer of machine tools in Toledo, Ohio. 1040a form In November of last year, your employer transferred you to London, England, for a minimum of 18 months to set up a sales operation for Europe. 1040a form Before you left, you distributed business cards showing your business and home addresses in London. 1040a form You kept ownership of your home in Toledo but rented it to another family. 1040a form You placed your car in storage. 1040a form In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London. 1040a form Shortly after moving, you leased a car and you and your spouse got British driving licenses. 1040a form Your entire family got library cards for the local public library. 1040a form You and your spouse opened bank accounts with a London bank and secured consumer credit. 1040a form You joined a local business league and both you and your spouse became active in the neighborhood civic association and worked with a local charity. 1040a form Your abode is in London for the time you live there. 1040a form You satisfy the tax home test in the foreign country. 1040a form Please click here for the text description of the image. 1040a form Figure 4–A Can I Claim the Exclusion or Deduction? Temporary or Indefinite Assignment The location of your tax home often depends on whether your assignment is temporary or indefinite. 1040a form If you are temporarily absent from your tax home in the United States on business, you may be able to deduct your away-from-home expenses (for travel, meals, and lodging), but you would not qualify for the foreign earned income exclusion. 1040a form If your new work assignment is for an indefinite period, your new place of employment becomes your tax home and you would not be able to deduct any of the related expenses that you have in the general area of this new work assignment. 1040a form If your new tax home is in a foreign country and you meet the other requirements, your earnings may qualify for the foreign earned income exclusion. 1040a form If you expect your employment away from home in a single location to last, and it does last, for 1 year or less, it is temporary unless facts and circumstances indicate otherwise. 1040a form If you expect it to last for more than 1 year, it is indefinite. 1040a form If you expect it to last for 1 year or less, but at some later date you expect it to last longer than 1 year, it is temporary (in the absence of facts and circumstances indicating otherwise) until your expectation changes. 1040a form Once your expectation changes, it is indefinite. 1040a form Foreign Country To meet the bona fide residence test or the physical presence test, you must live in or be present in a foreign country. 1040a form A foreign country includes any territory under the sovereignty of a government other than that of the United States. 1040a form The term “foreign country” includes the country's airspace and territorial waters, but not international waters and the airspace above them. 1040a form It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. 1040a form The term “foreign country” does not include Antarctica or U. 1040a form S. 1040a form possessions such as Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U. 1040a form S. 1040a form Virgin Islands, and Johnston Island. 1040a form For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, the terms “foreign,” “abroad,” and “overseas” refer to areas outside the United States and those areas listed or described in the previous sentence. 1040a form American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residence or presence in a U. 1040a form S. 1040a form possession does not qualify you for the foreign earned income exclusion. 1040a form You may, however, qualify for an exclusion of your possession income on your U. 1040a form S. 1040a form return. 1040a form American Samoa. 1040a form   There is a possession exclusion available to individuals who are bona fide residents of American Samoa for the entire tax year. 1040a form Gross income from sources within American Samoa may be eligible for this exclusion. 1040a form Income that is effectively connected with the conduct of a trade or business within American Samoa also may be eligible for this exclusion. 1040a form Use Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, to figure the exclusion. 1040a form Guam and the Commonwealth of the Northern Mariana Islands. 1040a form   An exclusion will be available to residents of Guam and the Commonwealth of the Northern Mariana Islands if, and when, new implementation agreements take effect between the United States and those possessions. 1040a form   For more information, see Publication 570. 1040a form Puerto Rico and U. 1040a form S. 1040a form Virgin Islands Residents of Puerto Rico and the U. 1040a form S. 1040a form Virgin Islands cannot claim the foreign earned income exclusion or the foreign housing exclusion. 1040a form Puerto Rico. 1040a form   Generally, if you are a U. 1040a form S. 1040a form citizen who is a bona fide resident of Puerto Rico for the entire tax year, you are not subject to U. 1040a form S. 1040a form tax on income from Puerto Rican sources. 1040a form This does not include amounts paid for services performed as an employee of the United States. 1040a form However, you are subject to U. 1040a form S. 1040a form tax on your income from sources outside Puerto Rico. 1040a form In figuring your U. 1040a form S. 1040a form tax, you cannot deduct expenses allocable to income not subject to tax. 1040a form Bona Fide Residence Test You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. 1040a form You can use the bona fide residence test to qualify for the exclusions and the deduction only if you are either: A U. 1040a form S. 1040a form citizen, or A U. 1040a form S. 1040a form resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect. 1040a form You do not automatically acquire bona fide resident status merely by living in a foreign country or countries for 1 year. 1040a form If you go to a foreign country to work on a particular job for a specified period of time, you ordinarily will not be regarded as a bona fide resident of that country even though you work there for 1 tax year or longer. 1040a form The length of your stay and the nature of your job are only two of the factors to be considered in determining whether you meet the bona fide residence test. 1040a form Bona fide residence. 1040a form   To meet the bona fide residence test, you must have established a bona fide residence in a foreign country. 1040a form   Your bona fide residence is not necessarily the same as your domicile. 1040a form Your domicile is your permanent home, the place to which you always return or intend to return. 1040a form Example. 1040a form You could have your domicile in Cleveland, Ohio, and a bona fide residence in Edinburgh, Scotland, if you intend to return eventually to Cleveland. 1040a form The fact that you go to Scotland does not automatically make Scotland your bona fide residence. 1040a form If you go there as a tourist, or on a short business trip, and return to the United States, you have not established bona fide residence in Scotland. 1040a form But if you go to Scotland to work for an indefinite or extended period and you set up permanent quarters there for yourself and your family, you probably have established a bona fide residence in a foreign country, even though you intend to return eventually to the United States. 1040a form You are clearly not a resident of Scotland in the first instance. 1040a form However, in the second, you are a resident because your stay in Scotland appears to be permanent. 1040a form If your residency is not as clearly defined as either of these illustrations, it may be more difficult to decide whether you have established a bona fide residence. 1040a form Determination. 1040a form   Questions of bona fide residence are determined according to each individual case, taking into account factors such as your intention, the purpose of your trip, and the nature and length of your stay abroad. 1040a form   To meet the bona fide residence test, you must show the Internal Revenue Service (IRS) that you have been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. 1040a form The IRS decides whether you are a bona fide resident of a foreign country largely on the basis of facts you report on Form 2555. 1040a form IRS cannot make this determination until you file Form 2555. 1040a form Statement to foreign authorities. 1040a form   You are not considered a bona fide resident of a foreign country if you make a statement to the authorities of that country that you are not a resident of that country, and the authorities: Hold that you are not subject to their income tax laws as a resident, or Have not made a final decision on your status. 1040a form Special agreements and treaties. 1040a form   An income tax exemption provided in a treaty or other international agreement will not in itself prevent you from being a bona fide resident of a foreign country. 1040a form Whether a treaty prevents you from becoming a bona fide resident of a foreign country is determined under all provisions of the treaty, including specific provisions relating to residence or privileges and immunities. 1040a form Example 1. 1040a form You are a U. 1040a form S. 1040a form citizen employed in the United Kingdom by a U. 1040a form S. 1040a form employer under contract with the U. 1040a form S. 1040a form Armed Forces. 1040a form You are not subject to the North Atlantic Treaty Status of Forces Agreement. 1040a form You may be a bona fide resident of the United Kingdom. 1040a form Example 2. 1040a form You are a U. 1040a form S. 1040a form citizen in the United Kingdom who qualifies as an “employee” of an armed service or as a member of a “civilian component” under the North Atlantic Treaty Status of Forces Agreement. 1040a form You are not a bona fide resident of the United Kingdom. 1040a form Example 3. 1040a form You are a U. 1040a form S. 1040a form citizen employed in Japan by a U. 1040a form S. 1040a form employer under contract with the U. 1040a form S. 1040a form Armed Forces. 1040a form You are subject to the agreement of the Treaty of Mutual Cooperation and Security between the United States and Japan. 1040a form Being subject to the agreement does not make you a bona fide resident of Japan. 1040a form Example 4. 1040a form You are a U. 1040a form S. 1040a form citizen employed as an “official” by the United Nations in Switzerland. 1040a form You are exempt from Swiss taxation on the salary or wages paid to you by the United Nations. 1040a form This does not prevent you from being a bona fide resident of Switzerland. 1040a form Effect of voting by absentee ballot. 1040a form   If you are a U. 1040a form S. 1040a form citizen living abroad, you can vote by absentee ballot in any election held in the United States without risking your status as a bona fide resident of a foreign country. 1040a form   However, if you give information to the local election officials about the nature and length of your stay abroad that does not match the information you give for the bona fide residence test, the information given in connection with absentee voting will be considered in determining your status, but will not necessarily be conclusive. 1040a form Uninterrupted period including entire tax year. 1040a form   To meet the bona fide residence test, you must reside in a foreign country or countries for an uninterrupted period that includes an entire tax year. 1040a form An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar year basis. 1040a form   During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. 1040a form To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country. 1040a form Example 1. 1040a form You arrived with your family in Lisbon, Portugal, on November 1, 2011. 1040a form Your assignment is indefinite, and you intend to live there with your family until your company sends you to a new post. 1040a form You immediately established residence there. 1040a form You spent April of 2012 at a business conference in the United States. 1040a form Your family stayed in Lisbon. 1040a form Immediately following the conference, you returned to Lisbon and continued living there. 1040a form On January 1, 2013, you completed an uninterrupted period of residence for a full tax year (2012), and you meet the bona fide residence test. 1040a form Example 2. 1040a form Assume the same facts as in Example 1, except that you transferred back to the United States on December 13, 2012. 1040a form You would not meet the bona fide residence test because your bona fide residence in the foreign country, although it lasted more than a year, did not include a full tax year. 1040a form You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test (discussed later). 1040a form Bona fide resident for part of a year. 1040a form   Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you are a bona fide resident of that country for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. 1040a form Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years. 1040a form Example. 1040a form You were a bona fide resident of Singapore from March 1, 2011, through September 14, 2013. 1040a form On September 15, 2013, you returned to the United States. 1040a form Since you were a bona fide resident of a foreign country for all of 2012, you were also a bona fide resident of a foreign country from March 1, 2011, through the end of 2011 and from January 1, 2013, through September 14, 2013. 1040a form Reassignment. 1040a form   If you are assigned from one foreign post to another, you may or may not have a break in foreign residence between your assignments, depending on the circumstances. 1040a form Example 1. 1040a form You were a resident of Pakistan from October 1, 2012, through November 30, 2013. 1040a form On December 1, 2013, you and your family returned to the United States to wait for an assignment to another foreign country. 1040a form Your household goods also were returned to the United States. 1040a form Your foreign residence ended on November 30, 2013, and did not begin again until after you were assigned to another foreign country and physically entered that country. 1040a form Since you were not a bona fide resident of a foreign country for the entire tax year of 2012 or 2013 you do not meet the bona fide residence test in either year. 1040a form You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test, discussed later. 1040a form Example 2. 1040a form Assume the same facts as in Example 1, except that upon completion of your assignment in Pakistan you were given a new assignment to Turkey. 1040a form On December 1, 2013, you and your family returned to the United States for a month's vacation. 1040a form On January 2, 2014, you arrived in Turkey for your new assignment. 1040a form Because you did not interrupt your bona fide residence abroad, you meet the bona fide residence test. 1040a form Physical Presence Test You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. 1040a form The 330 days do not have to be consecutive. 1040a form Any U. 1040a form S. 1040a form citizen or resident alien can use the physical presence test to qualify for the exclusions and the deduction. 1040a form The physical presence test is based only on how long you stay in a foreign country or countries. 1040a form This test does not depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad. 1040a form 330 full days. 1040a form   Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period. 1040a form You can count days you spent abroad for any reason. 1040a form You do not have to be in a foreign country only for employment purposes. 1040a form You can be on vacation. 1040a form   You do not meet the physical presence test if illness, family problems, a vacation, or your employer's orders cause you to be present for less than the required amount of time. 1040a form Exception. 1040a form   You can be physically present in a foreign country or countries for less than 330 full days and still meet the physical presence test if you are required to leave a country because of war or civil unrest. 1040a form See Waiver of Time Requirements, later. 1040a form Full day. 1040a form   A full day is a period of 24 consecutive hours, beginning at midnight. 1040a form Travel. 1040a form    When you leave the United States to go directly to a foreign country or when you return directly to the United States from a foreign country, the time you spend on or over international waters does not count toward the 330-day total. 1040a form Example. 1040a form You leave the United States for France by air on June 10. 1040a form You arrive in France at 9:00 a. 1040a form m. 1040a form on June 11. 1040a form Your first full day of physical presence in France is June 12. 1040a form Passing over foreign country. 1040a form   If, in traveling from the United States to a foreign country, you pass over a foreign country before midnight of the day you leave, the first day you can count toward the 330-day total is the day following the day you leave the United States. 1040a form Example. 1040a form You leave the United States by air at 9:30 a. 1040a form m. 1040a form on June 10 to travel to Kenya. 1040a form You pass over western Africa at 11:00 p. 1040a form m. 1040a form on June 10 and arrive in Kenya at 12:30 a. 1040a form m. 1040a form on June 11. 1040a form Your first full day in a foreign country is June 11. 1040a form Change of location. 1040a form   You can move about from one place to another in a foreign country or to another foreign country without losing full days. 1040a form If any part of your travel is not within any foreign country and takes less than 24 hours, you are considered to be in a foreign country during that part of travel. 1040a form Example 1. 1040a form You leave Ireland by air at 11:00 p. 1040a form m. 1040a form on July 6 and arrive in Sweden at 5:00 a. 1040a form m. 1040a form on July 7. 1040a form Your trip takes less than 24 hours and you lose no full days. 1040a form Example 2. 1040a form You leave Norway by ship at 10:00 p. 1040a form m. 1040a form on July 6 and arrive in Portugal at 6:00 a. 1040a form m. 1040a form on July 8. 1040a form Since your travel is not within a foreign country or countries and the trip takes more than 24 hours, you lose as full days July 6, 7, and 8. 1040a form If you remain in Portugal, your next full day in a foreign country is July 9. 1040a form In United States while in transit. 1040a form   If you are in transit between two points outside the United States and are physically present in the United States for less than 24 hours, you are not treated as present in the United States during the transit. 1040a form You are treated as traveling over areas not within any foreign country. 1040a form    Please click here for the text description of the image. 1040a form Figure 4-B How to figure the 12-month period. 1040a form   There are four rules you should know when figuring the 12-month period. 1040a form Your 12-month period can begin with any day of the month. 1040a form It ends the day before the same calendar day, 12 months later. 1040a form Your 12-month period must be made up of consecutive months. 1040a form Any 12-month period can be used if the 330 days in a foreign country fall within that period. 1040a form You do not have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. 1040a form You can choose the 12-month period that gives you the greatest exclusion. 1040a form In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another. 1040a form Example 1. 1040a form You are a construction worker who works on and off in a foreign country over a 20-month period. 1040a form You might pick up the 330 full days in a 12-month period only during the middle months of the time you work in the foreign country because the first few and last few months of the 20-month period are broken up by long visits to the United States. 1040a form Example 2. 1040a form You work in New Zealand for a 20-month period from January 1, 2012, through August 31, 2013, except that you spend 28 days in February 2012 and 28 days in February 2013 on vacation in the United States. 1040a form You are present in New Zealand for at least 330 full days during each of the following two 12-month periods: January 1, 2012 – December 31, 2012 and September 1, 2012 – August 31, 2013. 1040a form By overlapping the 12-month periods in this way, you meet the physical presence test for the whole 20-month period. 1040a form See Figure 4-B, on the previous page. 1040a form Waiver of Time Requirements Both the bona fide residence test and the physical presence test contain minimum time requirements. 1040a form The minimum time requirements can be waived, however, if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. 1040a form You must be able to show that you reasonably could have expected to meet the minimum time requirements if not for the adverse conditions. 1040a form To qualify for the waiver, you must actually have your tax home in the foreign country and be a bona fide resident of, or be physically present in, the foreign country on or before the beginning date of the waiver. 1040a form Early in 2014, the IRS will publish in the Internal Revenue Bulletin a list of the only countries that qualify for the waiver for 2013 and the effective dates. 1040a form If you left one of the countries on or after the date listed for each country, you can meet the bona fide residence test or physical presence test for 2013 without meeting the minimum time requirement. 1040a form However, in figuring your exclusion, the number of your qualifying days of bona fide residence or physical presence includes only days of actual residence or presence within the country. 1040a form U. 1040a form S. 1040a form Travel Restrictions If you are present in a foreign country in violation of U. 1040a form S. 1040a form law, you will not be treated as a bona fide resident of a foreign country or as physically present in a foreign country while you are in violation of the law. 1040a form Income that you earn from sources within such a country for services performed during a period of violation does not qualify as foreign earned income. 1040a form Your housing expenses within that country (or outside that country for housing your spouse or dependents) while you are in violation of the law cannot be included in figuring your foreign housing amount. 1040a form For 2013, the only country to which travel restrictions applied was Cuba. 1040a form The restrictions applied for the entire year. 1040a form However, individuals working at the U. 1040a form S. 1040a form Naval Base at Guantanamo Bay in Cuba are not in violation of U. 1040a form S. 1040a form law. 1040a form Personal service income earned by individuals at the base is eligible for the foreign earned income exclusion provided the other requirements are met. 1040a form Foreign Earned Income To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income. 1040a form Foreign earned income generally is income you receive for services you perform during a period in which you meet both of the following requirements. 1040a form Your tax home is in a foreign country. 1040a form You meet either the bona fide residence test or the physical presence test. 1040a form To determine whether your tax home is in a foreign country, see Tax Home in Foreign Country, earlier. 1040a form To determine whether you meet either the bona fide residence test or the physical presence test, see Bona Fide Residence Test and Physical Presence Test, earlier. 1040a form Foreign earned income does not include the following amounts. 1040a form The value of meals and lodging that you exclude from your income because the meals and lodging were furnished for the convenience of your employer. 1040a form Pension or annuity payments you receive, including social security benefits (see Pensions and annuities, later). 1040a form Pay you receive as an employee of the U. 1040a form S. 1040a form Government. 1040a form (See U. 1040a form S. 1040a form Government Employees, later. 1040a form ) Amounts you include in your income because of your employer's contributions to a nonexempt employee trust or to a nonqualified annuity contract. 1040a form Any unallowable moving expense deduction that you choose to recapture as explained under Moving Expense Attributable to Foreign Earnings in 2 Years in chapter 5. 1040a form Payments you receive after the end of the tax year following the tax year in which you performed the services that earned the income. 1040a form Earned income. 1040a form   This is pay for personal services performed, such as wages, salaries, or professional fees. 1040a form The list that follows classifies many types of income into three categories. 1040a form The column headed Variable Income lists income that may fall into either the earned income category, the unearned income category, or partly into both. 1040a form For more information on earned and unearned income, see Earned and Unearned Income, later. 1040a form Earned Income Unearned Income Variable Income Salaries and wages Dividends Business profits Commissions Interest Royalties Bonuses Capital gains Rents Professional fees Gambling winnings Scholarships and fellowships Tips Alimony     Social security benefits     Pensions     Annuities     In addition to the types of earned income listed, certain noncash income and allowances or reimbursements are considered earned income. 1040a form Noncash income. 1040a form   The fair market value of property or facilities provided to you by your employer in the form of lodging, meals, or use of a car is earned income. 1040a form Allowances or reimbursements. 1040a form   Earned income includes allowances or reimbursements you receive, such as the following amounts. 1040a form    Cost-of-living allowances. 1040a form Overseas differential. 1040a form Family allowance. 1040a form Reimbursement for education or education allowance. 1040a form Home leave allowance. 1040a form Quarters allowance. 1040a form Reimbursement for moving or moving allowance (unless excluded from income as discussed later in Reimbursement of employee expenses under Earned and Unearned Income). 1040a form Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. 1040a form Foreign earned income is income you receive for working in a foreign country. 1040a form Where or how you are paid has no effect on the source of the income. 1040a form For example, income you receive for work done in Austria is income from a foreign source even if the income is paid directly to your bank account in the United States and your employer is located in New York City. 1040a form Example. 1040a form You are a U. 1040a form S. 1040a form citizen, a bona fide resident of Canada, and working as a mining engineer. 1040a form Your salary is $76,800 per year. 1040a form You also receive a $6,000 cost-of-living allowance, and a $6,000 education allowance. 1040a form Your employment contract did not indicate that you were entitled to these allowances only while outside the United States. 1040a form Your total income is $88,800. 1040a form You work a 5-day week, Monday through Friday. 1040a form After subtracting your vacation, you have a total of 240 workdays in the year. 1040a form You worked in the United States during the year for 6 weeks (30 workdays). 1040a form The following shows how to figure the part of your income that is for work done in Canada during the year. 1040a form   Number of days worked in Canada during the year (210) × Total income ($88,800) = $77,700     Number of days of work during the year for which payment was made (240)   Your foreign source earned income is $77,700. 1040a form Earned and Unearned Income Earned income was defined earlier as pay for personal services performed. 1040a form Some types of income are not easily identified as earned or unearned income. 1040a form Some of these types of income are further explained here. 1040a form Income from a sole proprietorship or partnership. 1040a form   Income from a business in which capital investment is an important part of producing the income may be unearned income. 1040a form If you are a sole proprietor or partner and your personal services are also an important part of producing the income, the part of the income that represents the value of your personal services will be treated as earned income. 1040a form Capital a factor. 1040a form   If capital investment is an important part of producing income, no more than 30% of your share of the net profits of the business is earned income. 1040a form   If you have no net profits, the part of your gross profit that represents a reasonable allowance for personal services actually performed is considered earned income. 1040a form Because you do not have a net profit, the 30% limit does not apply. 1040a form Example 1. 1040a form You are a U. 1040a form S. 1040a form citizen and meet the bona fide residence test. 1040a form You invest in a partnership based in Cameroon that is engaged solely in selling merchandise outside the United States. 1040a form You perform no services for the partnership. 1040a form At the end of the tax year, your share of the net profits is $80,000. 1040a form The entire $80,000 is unearned income. 1040a form Example 2. 1040a form Assume that in Example 1 you spend time operating the business. 1040a form Your share of the net profits is $80,000; 30% of your share of the profits is $24,000. 1040a form If the value of your services for the year is $15,000, your earned income is limited to the value of your services, $15,000. 1040a form Capital not a factor. 1040a form   If capital is not an income-producing factor and personal services produce the business income, the 30% rule does not apply. 1040a form The entire amount of business income is earned income. 1040a form Example. 1040a form You and Lou Green are management consultants and operate as equal partners in performing services outside the United States. 1040a form Because capital is not an income- producing factor, all the income from the partnership is considered earned income. 1040a form Income from a corporation. 1040a form   The salary you receive from a corporation is earned income only if it represents a reasonable allowance as compensation for work you do for the corporation. 1040a form Any amount over what is considered a reasonable salary is unearned income. 1040a form Example 1. 1040a form You are a U. 1040a form S. 1040a form citizen and an officer and stockholder of a corporation in Honduras. 1040a form You perform no work or service of any kind for the corporation. 1040a form During the tax year you receive a $10,000 “salary” from the corporation. 1040a form The $10,000 clearly is not for personal services and is unearned income. 1040a form Example 2. 1040a form You are a U. 1040a form S. 1040a form citizen and work full time as secretary-treasurer of your corporation. 1040a form During the tax year you receive $100,000 as salary from the corporation. 1040a form If $80,000 is a reasonable allowance as pay for the work you did, then $80,000 is earned income. 1040a form Stock options. 1040a form   You may have earned income if you disposed of stock that you got by exercising a stock option granted to you under an employee stock purchase plan. 1040a form   If your gain on the disposition of stock you got by exercising an option is treated as capital gain, your gain is unearned income. 1040a form   However, if you disposed of the stock less than 2 years after you were granted the option or less than 1 year after you got the stock, part of the gain on the disposition may be earned income. 1040a form It is considered received in the year you disposed of the stock and earned in the year you performed the services for which you were granted the option. 1040a form Any part of the earned income that is due to work you did outside the United States is foreign earned income. 1040a form   See Publication 525, Taxable and Nontaxable Income, for a discussion of the treatment of stock options. 1040a form Pensions and annuities. 1040a form    For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, amounts received as pensions or annuities are unearned income. 1040a form Royalties. 1040a form   Royalties from the leasing of oil and mineral lands and patents generally are a form of rent or dividends and are unearned income. 1040a form   Royalties received by a writer are earned income if they are received: For the transfer of property rights of the writer in the writer's product, or Under a contract to write a book or series of articles. 1040a form Rental income. 1040a form   Generally, rental income is unearned income. 1040a form If you perform personal services in connection with the production of rent, up to 30% of your net rental income can be considered earned income. 1040a form Example. 1040a form Larry Smith, a U. 1040a form S. 1040a form citizen living in Australia, owns and operates a rooming house in Sydney. 1040a form If he is operating the rooming house as a business that requires capital and personal services, he can consider up to 30% of net rental income as earned income. 1040a form On the other hand, if he just owns the rooming house and performs no personal services connected with its operation, except perhaps making minor repairs and collecting rents, none of his net income from the house is considered earned income. 1040a form It is all unearned income. 1040a form Professional fees. 1040a form   If you are engaged in a professional occupation (such as a doctor or lawyer), all fees received in the performance of these services are earned income. 1040a form Income of an artist. 1040a form   Income you receive from the sale of paintings you created is earned income. 1040a form Scholarships and fellowships. 1040a form   Any portion of a scholarship or fellowship grant that is paid to you for teaching, research or other services is considered earned income if you must include it in your gross income. 1040a form If the payer of the grant is required to provide you with a Form W-2, Wage and Tax Statement, these amounts will be listed as wages. 1040a form    Certain scholarship and fellowship income may be exempt under other provisions. 1040a form See Publication 970, Tax Benefits for Education, chapter 1. 1040a form Use of employer's property or facilities. 1040a form   If you receive fringe benefits in the form of the right to use your employer's property or facilities, the fair market value of that right is earned income. 1040a form Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being required to buy or sell, and both having reasonable knowledge of all the necessary facts. 1040a form Example. 1040a form You are privately employed and live in Japan all year. 1040a form You are paid a salary of $6,000 a month. 1040a form You live rent-free in a house provided by your employer that has a fair rental value of $3,000 a month. 1040a form The house is not provided for your employer's convenience. 1040a form You report on the calendar-year, cash basis. 1040a form You received $72,000 salary from foreign sources plus $36,000 fair rental value of the house, or a total of $108,000 of earned income. 1040a form Reimbursement of employee expenses. 1040a form   If you are reimbursed under an accountable plan (defined below) for expenses you incur on your employer's behalf and you have adequately accounted to your employer for the expenses, do not include the reimbursement for those expenses in your earned income. 1040a form   The expenses for which you are reimbursed are not considered allocable (related) to your earned income. 1040a form If expenses and reimbursement are equal, there is nothing to allocate to excluded income. 1040a form If expenses are more than the reimbursement, the unreimbursed expenses are considered to have been incurred in producing earned income and must be divided between your excluded and included income in determining the amount of unreimbursed expenses you can deduct. 1040a form (See chapter 5. 1040a form ) If the reimbursement is more than the expenses, no expenses remain to be divided between excluded and included income and the excess reimbursement must be included in earned income. 1040a form   These rules do not apply to the following individuals. 1040a form Straight-commission salespersons. 1040a form Employees who have arrangements with their employers under which taxes are not withheld on a percentage of the commissions because the employers consider that percentage to be attributable to the employees' expenses. 1040a form Accountable plan. 1040a form   An accountable plan is a reimbursement or allowance arrangement that includes all three of the following rules. 1040a form The expenses covered under the plan must have a business connection. 1040a form The employee must adequately account to the employer for these expenses within a reasonable period of time. 1040a form The employee must return any excess reimbursement or allowance within a reasonable period of time. 1040a form Reimbursement of moving expenses. 1040a form   Reimbursement of moving expenses may be earned income. 1040a form You must include as earned income: Any reimbursements of, or payments for, nondeductible moving expenses, Reimbursements that are more than your deductible expenses and that you do not return to your employer, Any reimbursements made (or treated as made) under a nonaccountable plan (any plan that does not meet the rules listed above for an accountable plan), even if they are for deductible expenses, and Any reimbursement of moving expenses you deducted in an earlier year. 1040a form This section discusses reimbursements that must be included in earned income. 1040a form Publication 521, Moving Expenses, discusses additional rules that apply to moving expense deductions and reimbursements. 1040a form   The rules for determining when the reimbursement is considered earned or where the reimbursement is considered earned may differ somewhat from the general rules previously discussed. 1040a form   Although you receive the reimbursement in one tax year, it may be considered earned for services performed, or to be performed, in another tax year. 1040a form You must report the reimbursement as income on your return in the year you receive it, even if it is considered earned during a different year. 1040a form Move from U. 1040a form S. 1040a form to foreign country. 1040a form   If you move from the United States to a foreign country, your moving expense reimbursement is generally considered pay for future services to be performed at the new location. 1040a form The reimbursement is considered earned solely in the year of the move if you qualify for the exclusion for a period that includes at least 120 days during that tax year. 1040a form   If you are neither a bona fide resident of nor physically present in a foreign country or countries for a period that includes 120 days during the year of the move, a portion of the reimbursement is considered earned in the year of the move and a portion is considered earned in the year following the year of the move. 1040a form To figure the amount earned in the year of the move, multiply the reimbursement by a fraction. 1040a form The numerator (top number) is the number of days in your qualifying period that fall within the year of the move, and the denominator (bottom number) is the total number of days in the year of the move. 1040a form   The difference between the total reimbursement and the amount considered earned in the year of the move is the amount considered earned in the year following the year of the move. 1040a form The part earned in each year is figured as shown in the following example. 1040a form Example. 1040a form You are a U. 1040a form S. 1040a form citizen working in the United States. 1040a form You were told in October 2012 that you were being transferred to a foreign country. 1040a form You arrived in the foreign country on December 15, 2012, and you are a bona fide resident for the remainder of 2012 and all of 2013. 1040a form Your employer reimbursed you $2,000 in January 2013 for the part of the moving expense that you were not allowed to deduct. 1040a form Because you did not qualify for the exclusion under the bona fide residence test for at least 120 days in 2012 (the year of the move), the reimbursement is considered pay for services performed in the foreign country for both 2012 and 2013. 1040a form You figure the part of the reimbursement for services performed in the foreign country in 2012 by multiplying the total reimbursement by a fraction. 1040a form The fraction is the number of days during which you were a bona fide resident in 2012 (the year of the move) divided by 366. 1040a form The remaining part of the reimbursement is for services performed in the foreign country in 2013. 1040a form This computation is used only to determine when the reimbursement is considered earned. 1040a form You would include the amount of the reimbursement in income in 2013, the year you received it. 1040a form Move between foreign countries. 1040a form   If you move between foreign countries, any moving expense reimbursement that you must include in income will be considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least 120 days in the year of the move. 1040a form Move to U. 1040a form S. 1040a form   If you move to the United States, the moving expense reimbursement that you must include in income is generally considered to be U. 1040a form S. 1040a form source income. 1040a form   However, if under either an agreement between you and your employer or a statement of company policy that is reduced to writing before your move to the foreign country, your employer will reimburse you for your move back to the United States regardless of whether you continue to work for the employer, the includible reimbursement is considered compensation for past services performed in the foreign country. 1040a form The includible reimbursement is considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least 120 days during that year. 1040a form Otherwise, you treat the includible reimbursement as received for services performed in the foreign country in the year of the move and the year immediately before the year of the move. 1040a form   See the discussion under Move from U. 1040a form S. 1040a form to foreign country , earlier, to figure the amount of the includible reimbursement considered earned in the year of the move. 1040a form The amount earned in the year before the year of the move is the difference between the total includible reimbursement and the amount earned in the year of the move. 1040a form Example. 1040a form You are a U. 1040a form S. 1040a form citizen employed in a foreign country. 1040a form You retired from employment with your employer on March 31, 2013, and returned to the United States after having been a bona fide resident of the foreign country for several years. 1040a form A written agreement with your employer entered into before you went abroad provided that you would be reimbursed for your move back to the United States. 1040a form In April 2013, your former employer reimbursed you $4,000 for the part of the cost of your move back to the United States that you were not allowed to deduct. 1040a form Because you were not a bona fide resident of a foreign country or countries for a period that included at least 120 days in 2013 (the year of the move), the includible reimbursement is considered pay for services performed in the foreign country for both 2013 and 2012. 1040a form You figure the part of the moving expense reimbursement for services performed in the foreign country for 2013 by multiplying the total includible reimbursement by a fraction. 1040a form The fraction is the number of days of foreign residence during the year (90) divided by the number of days in the year (365). 1040a form The remaining part of the includible reimbursement is for services performed in the foreign country in 2012. 1040a form You report the amount of the includible reimbursement in 2013, the year you received it. 1040a form    In this example, if you met the physical presence test for a period that included at least 120 days in 2013, the moving expense reimbursement would be considered earned entirely in the year of the move. 1040a form Storage expense reimbursements. 1040a form   If you are reimbursed for storage expenses, the reimbursement is for services you perform during the period of time for which the storage expenses are incurred. 1040a form U. 1040a form S. 1040a form Government Employees For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, foreign earned income does not include any amounts paid by the United States or any of its agencies to its employees. 1040a form This includes amounts paid from both appropriated and nonappropriated funds. 1040a form The following organizations (and other organizations similarly organized and operated under United States Army, Navy, or Air Force regulations) are integral parts of the Armed Forces, agencies, or instrumentalities of the United States. 1040a form United States Armed Forces exchanges. 1040a form Commissioned and noncommissioned officers' messes. 1040a form Armed Forces motion picture services. 1040a form Kindergartens on foreign Armed Forces installations. 1040a form Amounts paid by the United States or its agencies to persons who are not their employees may qualify for exclusion or deduction. 1040a form If you are a U. 1040a form S. 1040a form Government employee paid by a U. 1040a form S. 1040a form agency that assigned you to a foreign government to perform specific services for which the agency is reimbursed by the foreign government, your pay is from the U. 1040a form S. 1040a form Government and does not qualify for exclusion or deduction. 1040a form If you have questions about whether you are an employee or an independent contractor, get Publication 15-A, Employer's Supplemental Tax Guide. 1040a form American Institute in Taiwan. 1040a form   Amounts paid by the American Institute in Taiwan are not foreign earned income for purposes of the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. 1040a form If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. 1040a form S. 1040a form tax up to the amount that equals tax-exempt allowances received by civilian employees of the U. 1040a form S. 1040a form Government. 1040a form Allowances. 1040a form   Cost-of-living and foreign-area allowances paid under certain acts of Congress to U. 1040a form S. 1040a form civilian officers and employees stationed in Alaska and Hawaii or elsewhere outside the 48 contiguous states and the District of Columbia can be excluded from gross income. 1040a form Post differentials are wages that must be included in gross income, regardless of the act of Congress under which they are paid. 1040a form More information. 1040a form   Publication 516, U. 1040a form S. 1040a form Government Civilian Employees Stationed Abroad, has more information for U. 1040a form S. 1040a form Government employees abroad. 1040a form Exclusion of Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. 1040a form The meals are furnished: On the business premises of your employer, and For the convenience of your employer. 1040a form The lodging is furnished: On the business premises of your employer, For the convenience of your employer, and As a condition of your employment. 1040a form If these conditions are met, do not include the value of the meals or lodging in your income, even if a law or your employment contract says that they are provided as compensation. 1040a form Amounts you do not include in income because of these rules are not foreign earned income. 1040a form If you receive a Form W-2, excludable amounts should not be included in the total reported in box 1 as wages. 1040a form Family. 1040a form   Your family, for this purpose, includes only your spouse and your dependents. 1040a form Lodging. 1040a form   The value of lodging includes the cost of heat, electricity, gas, water, sewer service, and similar items needed to make the lodging fit to live in. 1040a form Business premises of employer. 1040a form   Generally, the business premises of your employer is wherever you work. 1040a form For example, if you work as a housekeeper, meals and lodging provided in your employer's home are provided on the business premises of your employer. 1040a form Similarly, meals provided to cowhands while herding cattle on land leased or owned by their employer are considered provided on the premises of their employer. 1040a form Convenience of employer. 1040a form   Whether meals or lodging are provided for your employer's convenience must be determined from all the facts and circumstances. 1040a form Meals furnished at no charge are considered provided for your employer's convenience if there is a good business reason for providing them, other than to give you more pay. 1040a form   On the other hand, if your employer provides meals to you or your family as a means of giving you more pay, and there is no other business reason for providing them, their value is extra income to you because they are not furnished for the convenience of your employer. 1040a form Condition of employment. 1040a form   Lodging is provided as a condition of employment if you must accept the lodging to properly carry out the duties of your job. 1040a form You must accept lodging to properly carry out your duties if, for example, you must be available for duty at all times or you could not perform your duties if the lodging was not furnished. 1040a form Foreign camps. 1040a form   If the lodging is in a camp located in a foreign country, the camp is considered part of your employer's business premises. 1040a form The camp must be: Provided for your employer's convenience because the place where you work is in a remote area where satisfactory housing is not available to you on the open market within a reasonable commuting distance, Located as close as reasonably possible in the area where you work, and Provided in a common area or enclave that is not available to the general public for lodging or accommodations and that normally houses at least ten employees. 1040a form Foreign Earned Income Exclusion If your tax home is in a foreign country and you meet the bona fide residence test or the physical presence test, you can choose to exclude from your income a limited amount of your foreign earned income. 1040a form Foreign earned income was defined earlier in this chapter. 1040a form You also can choose to exclude from your income a foreign housing amount. 1040a form This is explained later under Foreign Housing Exclusion. 1040a form If you choose to exclude a foreign housing amount, you must figure the foreign housing exclusion before you figure the foreign earned income exclusion. 1040a form Your foreign earned income exclusion is limited to your foreign earned income minus your foreign housing exclusion. 1040a form If you choose to exclude foreign earned income, you cannot deduct, exclude, or claim a credit for any item that can be allocated to or charged against the excluded amounts. 1040a form This includes any expenses, losses, and other normally deductible items allocable to the excluded income. 1040a form For more information about deductions and credits, see chapter 5 . 1040a form Limit on Excludable Amount You may be able to exclude up to $97,600 of your foreign earned income in 2013. 1040a form You cannot exclude more than the smaller of: $97,600, or Your foreign earned income (discussed earlier) for the tax year minus your foreign housing exclusion (discussed later). 1040a form If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. 1040a form You do not both need to meet the same test. 1040a form Together, you and your spouse can exclude as much as $195,200. 1040a form Paid in year following work. 1040a form   Generally, you are considered to have earned income in the year in which you do the work for which you receive the income, even if you work in one year but are not paid until the following year. 1040a form If you report your income on a cash basis, you report the income on your return for the year you receive it. 1040a form If you work one year, but are not paid for that work until the next year, the amount you can exclude in the year you are paid is the amount you could have excluded in the year you did the work if you had been paid in that year. 1040a form For an exception to this general rule, see Year-end payroll period, later. 1040a form Example. 1040a form You were a bona fide resident of Brazil for all of 2012 and 2013. 1040a form You report your income on the cash basis. 1040a form In 2012, you were paid $84,200 for work you did in Brazil during that year. 1040a form You excluded all of the $84,200 from your income in 2012. 1040a form In 2013, you were paid $117,300 for your work in Brazil. 1040a form $18,800 was for work you did in 2012 and $98,500 was for work you did in 2013. 1040a form You can exclude $10,900 of the $18,800 from your income in 2013. 1040a form This is the $95,100 maximum exclusion in 2012 minus the $84,200 actually excluded that year. 1040a form You must include the remaining $7,900 in income in 2013 because you could not have excluded that income in 2012 if you had received it that year. 1040a form You can exclude $97,600 of the $98,500 you were paid for work you did in 2013 from your 2013 income. 1040a form Your total foreign earned income exclusion for 2013 is $108,500 ($10,900 for work you did in 2012 and $97,600 for work you did in 2013). 1040a form You would include in your 2013 income $8,800 ($7,900 for the work you did in 2012 and $900 for the work you did in 2013). 1040a form Year-end payroll period. 1040a form   There is an exception to the general rule that income is considered earned in the year you do the work for which you receive the income. 1040a form If you are a cash-basis taxpayer, any salary or wage payment you receive after the end of the year in which you do the work for which you receive the pay is considered earned entirely in the year you receive it if all four of the following apply. 1040a form The period for which the payment is made is a normal payroll period of your employer that regularly applies to you. 1040a form The payroll period includes the last day of your tax year (December 31 if you figure your taxes on a calendar-year basis). 1040a form The payroll period is not longer than 16 days. 1040a form The payday comes at the same time in relation to the payroll period that it would normally come and it comes before the end of the next payroll period. 1040a form Example. 1040a form You are paid twice a month. 1040a form For the normal payroll period that begins on the first of the month and ends on the fifteenth of the month, you are paid on the sixteenth day of the month. 1040a form For the normal payroll period that begins on the sixteenth of the month and ends on the last day of the month, you are paid on the first day of the following month. 1040a form Because all of the above conditions are met, the pay you received on January 1, 2013, is considered earned in 2013. 1040a form Income earned over more than 1 year. 1040a form   Regardless of when you actually receive income, you must apply it to the year in which you earned it in figuring your excludable amount for that year. 1040a form For example, a bonus may be based on work you did over several years. 1040a form You determine the amount of the bonus that is considered earned in a particular year in two steps. 1040a form Divide the bonus by the number of calendar months in the period when you did the work that resulted in the bonus. 1040a form Multiply the result of (1) by the number of months you did the work during the year. 1040a form This is the amount that is subject to the exclusion limit for that tax year. 1040a form Income received more than 1 year after it was earned. 1040a form   You cannot exclude income you receive after the end of the year following the year you do the work to earn it. 1040a form Example. 1040a form   You were a bona fide resident of Sweden for 2011, 2012, and 2013. 1040a form You report your income on the cash basis. 1040a form In 2011, you were paid $69,000 for work you did in Sweden that year and in 2012 you were paid $74,000 for that year's work in Sweden. 1040a form You excluded all the income on your 2011 and 2012 returns. 1040a form   In 2013, you were paid $92,000; $82,000 for your work in Sweden during 2013, and $10,000 for work you did in Sweden in 2011. 1040a form You cannot exclude any of the $10,000 for work done in 2011 because you received it after the end of the year following the year in which you earned it. 1040a form You must include the $10,000 in income. 1040a form You can exclude all of the $82,000 received for work you did in 2013. 1040a form Community income. 1040a form   The maximum exclusion applies separately to the earnings of spouses. 1040a form Ignore any community property laws when you figure your limit on the foreign earned income exclusion. 1040a form Part-year exclusion. 1040a form   If the period for which you qualify for the foreign earned income exclusion includes only part of the year, you must adjust the maximum limit based on the number of qualifying days in the year. 1040a form The number of qualifying days is the number of days in the year within the period on which you both: Have your tax home in a foreign country, and Meet either the bona fide residence test or the physical presence test. 1040a form   For this purpose, you can count as qualifying days all days within a period of 12 consecutive months once you are physically present and have your tax home in a foreign country for 330 full days. 1040a form To figure your maximum exclusion, multiply the maximum excludable amount for the year by the number of your qualifying days in the year, and then divide the result by the number of days in the year. 1040a form Example. 1040a form You report your income on the calendar-year basis and you qualified for the foreign earned income exclusion under the bona fide residence test for 75 days in 2013. 1040a form You can exclude a maximum of 75/365 of $97,600, or $20,055, of your foreign earned income for 2013. 1040a form If you qualify under the bona fide residence test for all of 2014, you can exclude your foreign earned income up to the 2014 limit. 1040a form Physical presence test. 1040a form   Under the physical presence test, a 12-month period can be any period of 12 consecutive months that includes 330 full days. 1040a form If you qualify for the foreign earned income exclusion under the physical presence test for part of a year, it is important to carefully choose the 12-month period that will allow the maximum exclusion for that year. 1040a form Example. 1040a form You are physically present and have your tax home in a foreign country for a 16-month period from June 1, 2012, through September 30, 2013, except for 16 days in December 2012 when you were on vacation in the United States. 1040a form You figure the maximum exclusion for 2012 as follows. 1040a form Beginning with June 1, 2012, count forward 330 full days. 1040a form Do not count the 16 days you spent in the United States. 1040a form The 330th day, May 12, 2013, is the last day of a 12-month period. 1040a form Count backward 12 months from May 11, 2013, to find the first day of this 12-month period, May 12, 2012. 1040a form This 12-month period runs from May 12, 2012, through May 11, 2013. 1040a form Count the total days during 2012 that fall within this 12-month period. 1040a form This is 234 days (May 12, 2012 – December 31, 2012). 1040a form Multiply $95,100 (the maximum exclusion for 2012) by the fraction 234/366 to find your maximum exclusion for 2012 ($60,802). 1040a form You figure the maximum exclusion for 2013 in the opposite manner. 1040a form Beginning with your last full day, September 30, 2013, count backward 330 full days. 1040a form Do not count the 16 days you spent in the United States. 1040a form That day, October 20, 2012, is the first day of a 12-month period. 1040a form Count forward 12 months from October 20, 2012, to find the last day of this 12-month period, October 19, 2013. 1040a form This 12-month period runs from October 20, 2012, through October 19, 2013. 1040a form Count the total days during 2013 that fall within this 12-month period. 1040a form This is 292 days (January 1, 2013 – October 19, 2013). 1040a form Multiply $97,600, the maximum limit, by the fraction 292/365 to find your maximum exclusion for 2013 ($78,080). 1040a form Choosing the Exclusion The foreign earned income exclusion is voluntary. 1040a form You can choose the exclusion by completing the appropriate parts of Form 2555. 1040a form When You Can Choose the Exclusion Your initial choice of the exclusion on Form 2555 or Form 2555-EZ generally must be made with one of the following returns. 1040a form A return filed by the due date (including any extensions). 1040a form A return amending a timely-filed return. 1040a form Amended returns generally must be filed by the later of 3 years after the filing date of the original return or 2 years after the tax is paid. 1040a form A return filed within 1 year from the original due date of the return (determined without regard to any extensions). 1040a form Filing after the above periods. 1040a form   You can choose the exclusion on a return filed after the periods described above if you owe no federal income tax after taking into account the exclusion. 1040a form If you owe federal income tax after taking into account the exclusion, you can choose the exclusion on a return filed after the periods described earlier if you file before the IRS discovers that you failed to choose the exclusion. 1040a form Whether or not you owe federal income tax after taking the exclusion into account, if you file your return after the periods described earlier, you must type or legibly print at the top of the first page of the Form 1040 “Filed pursuant to section 1. 1040a form 911-7(a)(2)(i)(D). 1040a form ” If you owe federal income tax after taking into account the foreign earned income exclusion and the IRS discovered that you failed to choose the exclusion, you may still be able to choose the exclusion. 1040a form You must request a private letter ruling under Income Tax Regulation 301. 1040a form 9100-3 and Revenue Procedure 2013-1, 2013-1 I. 1040a form R. 1040a form B. 1040a form 1, available at www. 1040a form irs. 1040a form gov/irb/2013-01_IRB/ar06. 1040a form html. 1040a form Effect of Choosing the Exclusion Once you choose to exclude your foreign earned income, that choice remains in effect for that year and all later years unless you revoke it. 1040a form Foreign tax credit or deduction. 1040a form  
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The 1040a Form

1040a form Publication 595 - Main Contents Table of Contents Capital Construction FundCCF Accounts Types of Accounts You Must Maintain Within a CCF Tax Treatment of CCF Deposits Tax Treatment of CCF Earnings Tax Treatment of CCF Withdrawals More Information How To Get Tax Help Capital Construction Fund The following sections discuss CCF accounts and the types of bookkeeping accounts you must maintain when you invest in a CCF account. 1040a form They also discuss the income tax treatment of CCF deposits, earnings, and withdrawals. 1040a form CCF Accounts This section explains who can open a CCF account and how to use the account to defer income tax. 1040a form Opening a CCF account. 1040a form   If you are a U. 1040a form S. 1040a form citizen and you own or lease one or more eligible vessels (defined later), you can open a CCF account. 1040a form However, before you open your CCF account, you must enter into an agreement with the Secretary of Commerce through the NMFS. 1040a form This agreement will establish the following. 1040a form Agreement vessels. 1040a form Eligible vessels named in the agreement that will be the basis for the deferral of income tax. 1040a form Planned use of withdrawals. 1040a form Use of CCF funds to acquire, build, or rebuild a vessel. 1040a form CCF depository. 1040a form Where your CCF funds will be held. 1040a form    You can request an application kit or get additional information from NMFS at the following address. 1040a form NOAA/NMFS, Financial Services Division, F/MB5 Capital Construction Fund Program 1315 East-West Highway Silver Spring, MD 20910-3282    You can obtain information on the Capital Construction Fund Program at the following website: www. 1040a form nmfs. 1040a form noaa. 1040a form gov/mb/financial_services/ccf. 1040a form htm. 1040a form    You can call NMFS to request an application kit or get additional information at (301) 713-2393 (ext. 1040a form 204). 1040a form Their fax number is (301) 713-1939. 1040a form Eligible vessels. 1040a form   There are two types of vessels that may be considered eligible, those weighing 5 tons or more and those weighing less than 5 tons. 1040a form For each type, certain requirements must be met. 1040a form Vessel weighing 5 tons or more. 1040a form   To be considered eligible, the vessel must meet all the following requirements. 1040a form Be built or rebuilt in the United States. 1040a form Be documented under the laws of the United States. 1040a form Be used commercially in the fisheries of the United States. 1040a form Be operated in the foreign or domestic commerce of the United States. 1040a form Vessel weighing less than 5 tons. 1040a form   A small vessel, weighing at least 2 net tons but less than 5 net tons, must meet all the following requirements to be considered eligible. 1040a form Be built or rebuilt in the United States. 1040a form Be owned by a U. 1040a form S. 1040a form citizen. 1040a form Have a home port in the United States. 1040a form Be used commercially in the fisheries of the United States. 1040a form Deferring tax on CCF deposits and earnings. 1040a form   You can use a CCF account to defer income tax by taking the following actions. 1040a form Making deposits to your CCF account from taxable income. 1040a form Excluding from income deposits assigned to certain accounts (discussed later). 1040a form Making withdrawals from your CCF account when you acquire, build, or rebuild fishing vessels. 1040a form Reducing the basis of fishing vessels you acquire, build, or rebuild to recapture amounts previously excluded from tax. 1040a form    Reporting requirements. 1040a form Beginning with the tax year in which you establish your agreement, you must report annual deposit and withdrawal activity to the NMFS on NOAA Form 34-82. 1040a form This form is due within 30 days after you file your federal income tax return even if no deposits or withdrawals are made. 1040a form For more information, contact the NMFS at the address or phone number given earlier. 1040a form Types of Accounts You Must Maintain Within a CCF This section discusses the three types of bookkeeping accounts you must maintain when you invest in a CCF account. 1040a form Your total CCF deposits and earnings for any given year are limited to the amount attributed to these three accounts for that year. 1040a form Capital account. 1040a form   The capital account consists primarily of amounts attributable to the following items. 1040a form Allowable depreciation deductions for agreement vessels. 1040a form Any nontaxable return of capital from either (a) or (b), below. 1040a form The sale or other disposition of agreement vessels. 1040a form Insurance or indemnity proceeds attributable to agreement vessels. 1040a form Any tax-exempt interest earned on state or local bonds in your CCF account. 1040a form Capital gain account. 1040a form   The capital gain account consists of amounts attributable to the following items reduced by any capital losses from assets held in your CCF account for more than 6 months. 1040a form Any capital gain from either of the following sources. 1040a form The sale or other disposition of agreement vessels held for more than 6 months. 1040a form Insurance or indemnity proceeds attributable to agreement vessels held for more than 6 months. 1040a form Any capital gain from assets held in your CCF account for more than 6 months. 1040a form Ordinary income account. 1040a form   The ordinary income account consists of amounts attributable to the following items. 1040a form Any earnings (without regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries of the United States or in the foreign or domestic commerce of the United States. 1040a form Any capital gain from the following sources reduced by any capital losses from assets held in your CCF account for 6 months or less. 1040a form The sale or other disposition of agreement vessels held for 6 months or less. 1040a form Insurance or indemnity proceeds attributable to agreement vessels held for 6 months or less. 1040a form Any capital gain from assets held in your CCF account for 6 months or less. 1040a form Any ordinary income (such as depreciation recapture) from either of the following sources. 1040a form The sale or other disposition of agreement vessels. 1040a form Insurance or indemnity proceeds attributable to agreement vessels. 1040a form Any interest (not including tax-exempt interest from state and local bonds), most dividends, and other ordinary income earned on the assets in your CCF account. 1040a form Tax Treatment of CCF Deposits This section explains the tax treatment of income used as the basis for CCF deposits. 1040a form Capital gains. 1040a form   Do not report any transaction that produces a capital gain if you deposit the net proceeds into your CCF account. 1040a form This treatment applies to either of the following transactions. 1040a form The sale or other disposition of an agreement vessel. 1040a form The receipt of insurance or indemnity proceeds attributable to an agreement vessel. 1040a form Depreciation recapture. 1040a form   Do not report any transaction that produces depreciation recapture if you deposit the net proceeds into your CCF account. 1040a form This treatment applies to either of the following transactions. 1040a form The sale or other disposition of an agreement vessel. 1040a form The receipt of insurance or indemnity proceeds attributable to an agreement vessel. 1040a form Earnings from operations. 1040a form   Report earnings from the operation of agreement vessels on your Schedule C or C-EZ (Form 1040) even if you deposit part of these earnings into your CCF account. 1040a form You subtract any part of the earnings you deposited into your CCF account from the amount you would otherwise enter as taxable income on Form 1040, line 43 (for 2005). 1040a form Next to line 43, write “CCF” and the amount of the deposits. 1040a form Do not deduct these CCF deposits on Schedule C or C-EZ (Form 1040). 1040a form If you deposit earnings from operations into your CCF account and you must complete other forms such as Form 6251, Alternative Minimum Tax (Individuals), or a worksheet for Schedule D (Form 1040), you will need to make an extra computation. 1040a form When the other form instructs you to use the amount from Form 1040, line 41 (for 2005), do not use that amount. 1040a form Instead, add Form 1040, lines 42 and 43 (for 2005), and use that amount. 1040a form Self-employment tax. 1040a form   You must use your net profit or loss from your fishing business to figure your self-employment tax. 1040a form Do not reduce your net profit or loss by any earnings from operations you deposit into your CCF account. 1040a form    Partnerships and S corporations. 1040a form The deduction for partnership earnings from operations deposited into a CCF account is separately stated on Schedule K (Form 1065), line 13d, and allocated to the partners on Schedule K-1 (Form 1065), box 13 (for 2005). 1040a form   The deduction for S corporation earnings deposited into a CCF account is separately stated on Schedule K (Form 1120S), line 12d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 12 (for 2005). 1040a form Tax Treatment of CCF Earnings This section explains the tax treatment of the earnings from the assets in your CCF account when the earnings are redeposited or left in your account. 1040a form However, if you choose to withdraw the earnings in the year earned, you must generally pay income tax on them. 1040a form Capital gains. 1040a form   Do not report any capital gains from the sale of capital assets held in your CCF account. 1040a form This includes capital gain distributions reported to you on Form 1099-DIV or a substitute statement. 1040a form However, you should attach a statement to your tax return to list the payers and the amounts and to identify the capital gains as “CCF account earnings. 1040a form ” Interest and dividends. 1040a form   Do not report any ordinary income (such as interest and dividends) you earn on the assets in your CCF account. 1040a form However, you should attach a statement to your return to list the payers and the amounts and to identify them as “CCF account earnings. 1040a form ”   If you are required to file Schedule B (Form 1040), you can add these earnings to the list of payers and amounts on line 1 or line 5 and identify them as “CCF earnings. 1040a form ” Then, subtract the same amounts from the list and identify them as “CCF deposits. 1040a form ” Tax-exempt interest. 1040a form   Do not report tax-exempt interest from state or local bonds you held in your CCF account. 1040a form You are not required to report this interest on Form 1040, line 8b. 1040a form Tax Treatment of CCF Withdrawals This section discusses the tax treatment of amounts you withdraw from your CCF account during the year. 1040a form Qualified Withdrawals A qualified withdrawal from a CCF account is one that is approved by NMFS for either of the following uses. 1040a form Acquiring, building, or rebuilding qualified vessels (defined next). 1040a form Making principal payments on the mortgage of a qualified vessel. 1040a form NMFS will not approve amounts withdrawn to purchase nets not continuously attached to the vessel, such as seine nets, gill set-nets, and gill drift-nets. 1040a form NMFS will approve amounts withdrawn to purchase trawl nets. 1040a form Qualified vessel. 1040a form   This is any vessel that meets all of the following requirements. 1040a form The vessel was built or rebuilt in the United States. 1040a form The vessel is documented under the laws of the United States. 1040a form The person maintaining the CCF account agrees with the Secretary of Commerce that the vessel will be operated in United States foreign trade, Great Lakes trade, noncontiguous domestic trade, or the fisheries of the United States. 1040a form How to determine the source of qualified withdrawals. 1040a form   When you make a qualified withdrawal, the amount is treated as being withdrawn in the following order from the accounts listed below. 1040a form The capital account. 1040a form The capital gain account. 1040a form The ordinary income account. 1040a form Excluding qualified withdrawals from tax. 1040a form   Do not report on your income tax return any qualified withdrawals from your CCF account. 1040a form Reduce the depreciable basis of fishing vessels you acquire, build, or rebuild when you make a qualified withdrawal from either the capital gain or the ordinary income account. 1040a form Nonqualified Withdrawals A nonqualified withdrawal from a CCF account is generally any withdrawal that is not a qualified withdrawal. 1040a form Qualified withdrawals are defined under Qualified Withdrawals, earlier. 1040a form Examples. 1040a form   Examples of nonqualified withdrawals include the following amounts from either the ordinary income account or the capital gain account. 1040a form Amounts remaining in a CCF account upon termination of your agreement with NMFS. 1040a form Amounts you withdraw and use to make principal payments on the mortgage of a vessel if the basis of that vessel and the bases of other vessels you own have already been reduced to zero. 1040a form Amounts determined by the IRS to cause your CCF account balance to exceed the amount appropriate to meet your planned use of withdrawals. 1040a form You will generally be given 3 years to revise your plans to cover this excess balance. 1040a form Amounts you leave in your account for more than 25 years. 1040a form There is a graduated schedule under which the percentage applied to determine the amount of the nonqualified withdrawal increases from 20% in the 26th year to 100% in the 30th year. 1040a form How to determine the source of nonqualified withdrawals. 1040a form    When you make a nonqualified withdrawal from your CCF account, the amount is treated as being withdrawn in the following order from the accounts listed below. 1040a form The ordinary income account. 1040a form The capital gain account. 1040a form The capital account. 1040a form Paying tax on nonqualified withdrawals. 1040a form   In general, nonqualified withdrawals are taxed separately from your other gross income and at the highest marginal tax rate in effect for the year of withdrawal. 1040a form However, nonqualified withdrawals treated as made from the capital gain account are taxed at a rate that cannot exceed 15% for individuals and 34% for corporations. 1040a form    Partnerships and S corporations. 1040a form Taxable nonqualified partnership withdrawals are separately stated on Schedule K (Form 1065), line 20c, and allocated to the partners on Schedule K-1 (Form 1065), box 20 (for 2005). 1040a form Taxable nonqualified withdrawals by an S corporation are separately stated on Schedule K (Form 1120S), line 17d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 17. 1040a form Interest. 1040a form   You must pay interest on the additional tax due to nonqualified withdrawals that are treated as made from either the ordinary income or the capital gain account. 1040a form The interest period begins on the last date for paying tax for the year for which you deposited the amount you withdrew from your CCF account. 1040a form The period ends on the last date for paying tax for the year in which you make the nonqualified withdrawal. 1040a form The interest rate on the nonqualified withdrawal is simple interest. 1040a form The rate is subject to change annually and is published in the Federal Register. 1040a form    You also can call NMFS at (301) 713-2393 (ext. 1040a form 204) to get the current interest rate. 1040a form Interest deduction. 1040a form   You can deduct the interest you pay on a nonqualified withdrawal as a trade or business expense. 1040a form Reporting the additional tax and interest. 1040a form   Attach a statement to your income tax return showing your computation of the tax and the interest on a nonqualified withdrawal. 1040a form Include the tax and interest on Form 1040, line 63 (for 2005). 1040a form To the left of line 63, write in the amount of tax and interest and “CCF. 1040a form ” Tax benefit rule. 1040a form   If any portion of your nonqualified withdrawal is properly attributable to contributions (not earnings on the contributions) you made to the CCF account that did not reduce your tax liability for any tax year prior to the withdrawal year, the following tax treatment applies. 1040a form The part that did not reduce your tax liability for any year prior to the withdrawal year is not taxed. 1040a form That part is allowed as a net operating loss deduction. 1040a form More Information This section briefly discussed the CCF program. 1040a form For more detailed information, see the following legislative authorities. 1040a form Section 607 of the Merchant Marine Act of 1936, as amended (46 U. 1040a form S. 1040a form C. 1040a form 1177). 1040a form Chapter 2, Part 259 of title 50 of the Code of Federal Regulations (50 C. 1040a form F. 1040a form R. 1040a form , Part 259). 1040a form Subchapter A, Part 3 of title 26 of the Code of Federal Regulations (26 C. 1040a form F. 1040a form R. 1040a form , Part 3). 1040a form Section 7518 of the Internal Revenue Code (IRC 7518). 1040a form The application kit you can obtain from NMFS at the address or phone number given earlier may contain copies of some of these sources of additional information. 1040a form Also, see their web page at www. 1040a form nmfs. 1040a form noaa. 1040a form gov/mb/financial_services/ccf. 1040a form htm. 1040a form How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 1040a form By selecting the method that is best for you, you will have quick and easy access to tax help. 1040a form Contacting your Taxpayer Advocate. 1040a form   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. 1040a form   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. 1040a form While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. 1040a form   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778, Call, write, or fax the Taxpayer Advocate office in your area, Call 1-800-829-4059 if you are a TTY/TDD user, or Visit www. 1040a form irs. 1040a form gov/advocate. 1040a form   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). 1040a form Free tax services. 1040a form   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. 1040a form It contains a list of free tax publications and an index of tax topics. 1040a form It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. 1040a form Internet. 1040a form You can access the IRS website 24 hours a day, 7 days a week, at www. 1040a form irs. 1040a form gov to: E-file your return. 1040a form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040a form Check the status of your refund. 1040a form Click on Where's My Refund. 1040a form Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 1040a form Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 1040a form Download forms, instructions, and publications. 1040a form Order IRS products online. 1040a form Research your tax questions online. 1040a form Search publications online by topic or keyword. 1040a form View Internal Revenue Bulletins (IRBs) published in the last few years. 1040a form Figure your withholding allowances using our Form W-4 calculator. 1040a form Sign up to receive local and national tax news by email. 1040a form Get information on starting and operating a small business. 1040a form Phone. 1040a form Many services are available by phone. 1040a form Ordering forms, instructions, and publications. 1040a form Call 1-800-829-3676 to order current-year forms, instructions, and publications and prior-year forms and instructions. 1040a form You should receive your order within 10 days. 1040a form Asking tax questions. 1040a form Call the IRS with your tax questions at 1-800-829-1040. 1040a form Solving problems. 1040a form You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. 1040a form An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040a form Call your local Taxpayer Assistance Center for an appointment. 1040a form To find the number, go to www. 1040a form irs. 1040a form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040a form TTY/TDD equipment. 1040a form If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 1040a form TeleTax topics. 1040a form Call 1-800-829-4477 and press 2 to listen to pre-recorded messages covering various tax topics. 1040a form Refund information. 1040a form If you would like to check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information and follow the recorded instructions or call 1-800-829-1954. 1040a form Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 1040a form Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 1040a form Evaluating the quality of our telephone services. 1040a form To ensure that IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 1040a form One method is for a second IRS representative to sometimes listen in on or record telephone calls. 1040a form Another is to ask some callers to complete a short survey at the end of the call. 1040a form Walk-in. 1040a form Many products and services are available on a walk-in basis. 1040a form Products. 1040a form You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040a form Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD-ROM or photocopy from reproducible proofs. 1040a form Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 1040a form Services. 1040a form You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. 1040a form An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040a form If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. 1040a form No appointment is necessary, but if you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. 1040a form A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. 1040a form To find the number, go to www. 1040a form irs. 1040a form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040a form Mail. 1040a form You can send your order for forms, instructions, and publications to the address below and receive a response within 10 business days after your request is received. 1040a form National Distribution Center P. 1040a form O. 1040a form Box 8903 Bloomington, IL 61702-8903 CD-ROM for tax products. 1040a form You can order Publication 1796, IRS Tax Products on CD-ROM, and obtain: A CD that is released twice so you have the latest products. 1040a form The first release ships in late December and the final release ships in late February. 1040a form Current-year forms, instructions, and publications. 1040a form Prior-year forms, instructions, and publications. 1040a form Tax Map: an electronic research tool and finding aid. 1040a form Tax law frequently asked questions (FAQs). 1040a form Tax Topics from the IRS telephone response system. 1040a form Fill-in, print, and save features for most tax forms. 1040a form Internal Revenue Bulletins. 1040a form Toll-free and email technical support. 1040a form Buy the CD-ROM from National Technical Information Service (NTIS) at www. 1040a form irs. 1040a form gov/cdorders for $25 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $25 (plus a $5 handling fee). 1040a form CD-ROM for small businesses. 1040a form Publication 3207, Small Business Resource Guide CD-ROM, has a new look and enhanced navigation features. 1040a form This CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. 1040a form All the business tax forms, instructions, and publications needed to successfully manage a business. 1040a form Tax law changes. 1040a form IRS Tax Map to help you find forms, instructions, and publications by searching on a keyword or topic. 1040a form Web links to various government agencies, business associations, and IRS organizations. 1040a form “Rate the Product” survey—your opportunity to suggest changes for future editions. 1040a form An updated version of this CD is available each year in early April. 1040a form You can get a free copy by calling 1-800-829-3676 or by visiting www. 1040a form irs. 1040a form gov/smallbiz. 1040a form Prev  Up  Next   Home   More Online Publications