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1040ez 2012 Worksheet

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1040ez 2012 Worksheet

1040ez 2012 worksheet Publication 519 - Additional Material Table of Contents Appendix A—Tax Treaty Exemption Procedure for StudentsBelgium Bulgaria China, People's Republic of Cyprus Czech Republic, Estonia, Latvia, Lithuania, and Slovak Republic Egypt France Germany Iceland Indonesia Israel, Philippines and Thailand Korea, Norway, Poland, and Romania Morocco Netherlands Pakistan Portugal and Spain Slovenia and Venezuela Trinidad and Tobago Tunisia Appendix B—Tax Treaty Exemption Procedure for Teachers and ResearchersBelgium Bulgaria China, People's Republic of Commonwealth of Independent States Czech Republic and Slovak Republic Egypt, Hungary, Korea, Philippines, Poland, and Romania France Germany Greece India Indonesia Israel Italy Jamaica Luxembourg Netherlands Norway Pakistan Portugal Slovenia and Venezuela Thailand Trinidad and Tobago United Kingdom Frequently Asked Questions This section answers tax-related questions commonly asked by aliens. 1040ez 2012 worksheet . 1040ez 2012 worksheet What is the difference between a resident alien and a nonresident alien for tax purposes? . 1040ez 2012 worksheet What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? . 1040ez 2012 worksheet I am a student with an F-1 Visa. 1040ez 2012 worksheet I was told that I was an exempt individual. 1040ez 2012 worksheet Does this mean I am exempt from paying U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax? . 1040ez 2012 worksheet I am a resident alien. 1040ez 2012 worksheet Can I claim any treaty benefits? . 1040ez 2012 worksheet I am a nonresident alien with no dependents. 1040ez 2012 worksheet I am working temporarily for a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet company. 1040ez 2012 worksheet What return do I file? . 1040ez 2012 worksheet I came to the United States on June 30th of last year. 1040ez 2012 worksheet I have an H-1B Visa. 1040ez 2012 worksheet What is my tax status, resident alien or nonresident alien? What tax return do I file? . 1040ez 2012 worksheet When is my Form 1040NR due? . 1040ez 2012 worksheet My spouse is a nonresident alien. 1040ez 2012 worksheet Does he need a social security number? . 1040ez 2012 worksheet I am a nonresident alien. 1040ez 2012 worksheet Can I file a joint return with my spouse? . 1040ez 2012 worksheet I have an H-1B Visa and my husband has an F-1 Visa. 1040ez 2012 worksheet We both lived in the United States all of last year and had income. 1040ez 2012 worksheet What kind of form should we file? Do we file separate returns or a joint return? . 1040ez 2012 worksheet Is a dual-resident taxpayer the same as a dual-status taxpayer? . 1040ez 2012 worksheet I am a nonresident alien and invested money in the U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet stock market through a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet brokerage company. 1040ez 2012 worksheet Are the dividends and the capital gains taxable? If yes, how are they taxed? . 1040ez 2012 worksheet I am a nonresident alien. 1040ez 2012 worksheet I receive U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits. 1040ez 2012 worksheet Are my benefits taxable? . 1040ez 2012 worksheet Do I have to pay taxes on my scholarship? . 1040ez 2012 worksheet I am a nonresident alien. 1040ez 2012 worksheet Can I claim the standard deduction? . 1040ez 2012 worksheet I am a dual-status taxpayer. 1040ez 2012 worksheet Can I claim the standard deduction? . 1040ez 2012 worksheet I am filing Form 1040NR. 1040ez 2012 worksheet Can I claim itemized deductions? . 1040ez 2012 worksheet I am not a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen. 1040ez 2012 worksheet What exemptions can I claim? . 1040ez 2012 worksheet What exemptions can I claim as a dual-status taxpayer? . 1040ez 2012 worksheet I am single with a dependent child. 1040ez 2012 worksheet I was a dual-status alien in 2013. 1040ez 2012 worksheet Can I claim the earned income credit on my 2013 tax return? . 1040ez 2012 worksheet I am a nonresident alien student. 1040ez 2012 worksheet Can I claim an education credit on my Form 1040NR? . 1040ez 2012 worksheet I am a nonresident alien, temporarily working in the U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet under a J visa. 1040ez 2012 worksheet Am I subject to social security and Medicare taxes? . 1040ez 2012 worksheet I am a nonresident alien student. 1040ez 2012 worksheet Social security taxes were withheld from my pay in error. 1040ez 2012 worksheet How do I get a refund of these taxes? . 1040ez 2012 worksheet I am an alien who will be leaving the United States. 1040ez 2012 worksheet What forms do I have to file before I leave? . 1040ez 2012 worksheet I filed a Form 1040-C when I left the United States. 1040ez 2012 worksheet Do I still have to file an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return? . 1040ez 2012 worksheet What is the difference between a resident alien and a nonresident alien for tax purposes? For tax purposes, an alien is an individual who is not a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen. 1040ez 2012 worksheet Aliens are classified as resident aliens and nonresident aliens. 1040ez 2012 worksheet Resident aliens are taxed on their worldwide income, the same as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet Nonresident aliens are taxed only on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income and certain foreign source income that is effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. 1040ez 2012 worksheet These are the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. 1040ez 2012 worksheet The term “exempt individual” does not refer to someone exempt from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. 1040ez 2012 worksheet See chapter 1 . 1040ez 2012 worksheet Generally, you cannot claim tax treaty benefits as a resident alien. 1040ez 2012 worksheet However, there are exceptions. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. 1040ez 2012 worksheet You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income on which tax was not fully paid by the amount withheld. 1040ez 2012 worksheet You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. 1040ez 2012 worksheet You were a dual-status alien last year. 1040ez 2012 worksheet As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. 1040ez 2012 worksheet However, for the part of the year that you were not present in the United States, you are a nonresident. 1040ez 2012 worksheet File Form 1040. 1040ez 2012 worksheet Print “Dual-Status Return” across the top. 1040ez 2012 worksheet Attach a statement showing your U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income for the part of the year you were a nonresident. 1040ez 2012 worksheet You may use Form 1040NR as the statement. 1040ez 2012 worksheet Print “Dual-Status Statement” across the top. 1040ez 2012 worksheet See First Year of Residency in chapter 1 for rules on determining your residency starting date. 1040ez 2012 worksheet If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. 1040ez 2012 worksheet See Social Security and Medicare Taxes in chapter 8. 1040ez 2012 worksheet If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040ez 2012 worksheet If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040ez 2012 worksheet Do not use Form 843 to request a refund of Additional Medicare Tax. 1040ez 2012 worksheet See Refund of Taxes Withheld in Error in chapter 8. 1040ez 2012 worksheet Before leaving the United States, aliens generally must obtain a certificate of compliance. 1040ez 2012 worksheet This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. 1040ez 2012 worksheet You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. 1040ez 2012 worksheet These forms are discussed in chapter 11. 1040ez 2012 worksheet Form 1040-C is not an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. 1040ez 2012 worksheet Chapters 5 and 7 discuss filing an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet . 1040ez 2012 worksheet What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. 1040ez 2012 worksheet These are the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. 1040ez 2012 worksheet The term “exempt individual” does not refer to someone exempt from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. 1040ez 2012 worksheet See chapter 1 . 1040ez 2012 worksheet Generally, you cannot claim tax treaty benefits as a resident alien. 1040ez 2012 worksheet However, there are exceptions. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. 1040ez 2012 worksheet You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income on which tax was not fully paid by the amount withheld. 1040ez 2012 worksheet You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. 1040ez 2012 worksheet You were a dual-status alien last year. 1040ez 2012 worksheet As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. 1040ez 2012 worksheet However, for the part of the year that you were not present in the United States, you are a nonresident. 1040ez 2012 worksheet File Form 1040. 1040ez 2012 worksheet Print “Dual-Status Return” across the top. 1040ez 2012 worksheet Attach a statement showing your U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income for the part of the year you were a nonresident. 1040ez 2012 worksheet You may use Form 1040NR as the statement. 1040ez 2012 worksheet Print “Dual-Status Statement” across the top. 1040ez 2012 worksheet See First Year of Residency in chapter 1 for rules on determining your residency starting date. 1040ez 2012 worksheet If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. 1040ez 2012 worksheet See Social Security and Medicare Taxes in chapter 8. 1040ez 2012 worksheet If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040ez 2012 worksheet If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040ez 2012 worksheet Do not use Form 843 to request a refund of Additional Medicare Tax. 1040ez 2012 worksheet See Refund of Taxes Withheld in Error in chapter 8. 1040ez 2012 worksheet Before leaving the United States, aliens generally must obtain a certificate of compliance. 1040ez 2012 worksheet This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. 1040ez 2012 worksheet You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. 1040ez 2012 worksheet These forms are discussed in chapter 11. 1040ez 2012 worksheet Form 1040-C is not an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. 1040ez 2012 worksheet Chapters 5 and 7 discuss filing an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet . 1040ez 2012 worksheet I am a student with an F-1 Visa. 1040ez 2012 worksheet I was told that I was an exempt individual. 1040ez 2012 worksheet Does this mean I am exempt from paying U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax? The term “exempt individual” does not refer to someone exempt from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. 1040ez 2012 worksheet See chapter 1 . 1040ez 2012 worksheet Generally, you cannot claim tax treaty benefits as a resident alien. 1040ez 2012 worksheet However, there are exceptions. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. 1040ez 2012 worksheet You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income on which tax was not fully paid by the amount withheld. 1040ez 2012 worksheet You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. 1040ez 2012 worksheet You were a dual-status alien last year. 1040ez 2012 worksheet As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. 1040ez 2012 worksheet However, for the part of the year that you were not present in the United States, you are a nonresident. 1040ez 2012 worksheet File Form 1040. 1040ez 2012 worksheet Print “Dual-Status Return” across the top. 1040ez 2012 worksheet Attach a statement showing your U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income for the part of the year you were a nonresident. 1040ez 2012 worksheet You may use Form 1040NR as the statement. 1040ez 2012 worksheet Print “Dual-Status Statement” across the top. 1040ez 2012 worksheet See First Year of Residency in chapter 1 for rules on determining your residency starting date. 1040ez 2012 worksheet If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. 1040ez 2012 worksheet See Social Security and Medicare Taxes in chapter 8. 1040ez 2012 worksheet If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040ez 2012 worksheet If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040ez 2012 worksheet Do not use Form 843 to request a refund of Additional Medicare Tax. 1040ez 2012 worksheet See Refund of Taxes Withheld in Error in chapter 8. 1040ez 2012 worksheet Before leaving the United States, aliens generally must obtain a certificate of compliance. 1040ez 2012 worksheet This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. 1040ez 2012 worksheet You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. 1040ez 2012 worksheet These forms are discussed in chapter 11. 1040ez 2012 worksheet Form 1040-C is not an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. 1040ez 2012 worksheet Chapters 5 and 7 discuss filing an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet . 1040ez 2012 worksheet I am a resident alien. 1040ez 2012 worksheet Can I claim any treaty benefits? Generally, you cannot claim tax treaty benefits as a resident alien. 1040ez 2012 worksheet However, there are exceptions. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. 1040ez 2012 worksheet You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income on which tax was not fully paid by the amount withheld. 1040ez 2012 worksheet You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. 1040ez 2012 worksheet You were a dual-status alien last year. 1040ez 2012 worksheet As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. 1040ez 2012 worksheet However, for the part of the year that you were not present in the United States, you are a nonresident. 1040ez 2012 worksheet File Form 1040. 1040ez 2012 worksheet Print “Dual-Status Return” across the top. 1040ez 2012 worksheet Attach a statement showing your U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income for the part of the year you were a nonresident. 1040ez 2012 worksheet You may use Form 1040NR as the statement. 1040ez 2012 worksheet Print “Dual-Status Statement” across the top. 1040ez 2012 worksheet See First Year of Residency in chapter 1 for rules on determining your residency starting date. 1040ez 2012 worksheet If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. 1040ez 2012 worksheet See Social Security and Medicare Taxes in chapter 8. 1040ez 2012 worksheet If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040ez 2012 worksheet If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040ez 2012 worksheet Do not use Form 843 to request a refund of Additional Medicare Tax. 1040ez 2012 worksheet See Refund of Taxes Withheld in Error in chapter 8. 1040ez 2012 worksheet Before leaving the United States, aliens generally must obtain a certificate of compliance. 1040ez 2012 worksheet This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. 1040ez 2012 worksheet You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. 1040ez 2012 worksheet These forms are discussed in chapter 11. 1040ez 2012 worksheet Form 1040-C is not an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. 1040ez 2012 worksheet Chapters 5 and 7 discuss filing an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet . 1040ez 2012 worksheet I am a nonresident alien with no dependents. 1040ez 2012 worksheet I am working temporarily for a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet company. 1040ez 2012 worksheet What return do I file? You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income on which tax was not fully paid by the amount withheld. 1040ez 2012 worksheet You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. 1040ez 2012 worksheet You were a dual-status alien last year. 1040ez 2012 worksheet As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. 1040ez 2012 worksheet However, for the part of the year that you were not present in the United States, you are a nonresident. 1040ez 2012 worksheet File Form 1040. 1040ez 2012 worksheet Print “Dual-Status Return” across the top. 1040ez 2012 worksheet Attach a statement showing your U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income for the part of the year you were a nonresident. 1040ez 2012 worksheet You may use Form 1040NR as the statement. 1040ez 2012 worksheet Print “Dual-Status Statement” across the top. 1040ez 2012 worksheet See First Year of Residency in chapter 1 for rules on determining your residency starting date. 1040ez 2012 worksheet If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. 1040ez 2012 worksheet See Social Security and Medicare Taxes in chapter 8. 1040ez 2012 worksheet If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040ez 2012 worksheet If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040ez 2012 worksheet Do not use Form 843 to request a refund of Additional Medicare Tax. 1040ez 2012 worksheet See Refund of Taxes Withheld in Error in chapter 8. 1040ez 2012 worksheet Before leaving the United States, aliens generally must obtain a certificate of compliance. 1040ez 2012 worksheet This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. 1040ez 2012 worksheet You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. 1040ez 2012 worksheet These forms are discussed in chapter 11. 1040ez 2012 worksheet Form 1040-C is not an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. 1040ez 2012 worksheet Chapters 5 and 7 discuss filing an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet . 1040ez 2012 worksheet I came to the United States on June 30th of last year. 1040ez 2012 worksheet I have an H-1B Visa. 1040ez 2012 worksheet What is my tax status, resident alien or nonresident alien? What tax return do I file? You were a dual-status alien last year. 1040ez 2012 worksheet As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. 1040ez 2012 worksheet However, for the part of the year that you were not present in the United States, you are a nonresident. 1040ez 2012 worksheet File Form 1040. 1040ez 2012 worksheet Print “Dual-Status Return” across the top. 1040ez 2012 worksheet Attach a statement showing your U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet source income for the part of the year you were a nonresident. 1040ez 2012 worksheet You may use Form 1040NR as the statement. 1040ez 2012 worksheet Print “Dual-Status Statement” across the top. 1040ez 2012 worksheet See First Year of Residency in chapter 1 for rules on determining your residency starting date. 1040ez 2012 worksheet If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. 1040ez 2012 worksheet See Social Security and Medicare Taxes in chapter 8. 1040ez 2012 worksheet If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040ez 2012 worksheet If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040ez 2012 worksheet Do not use Form 843 to request a refund of Additional Medicare Tax. 1040ez 2012 worksheet See Refund of Taxes Withheld in Error in chapter 8. 1040ez 2012 worksheet Before leaving the United States, aliens generally must obtain a certificate of compliance. 1040ez 2012 worksheet This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. 1040ez 2012 worksheet You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. 1040ez 2012 worksheet These forms are discussed in chapter 11. 1040ez 2012 worksheet Form 1040-C is not an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. 1040ez 2012 worksheet Chapters 5 and 7 discuss filing an annual U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax return. 1040ez 2012 worksheet . 1040ez 2012 worksheet When is my Form 1040NR due? If you are an employee and you receive wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. 1040ez 2012 worksheet If you file for the 2013 calendar year, your return is due April 15, 2014. 1040ez 2012 worksheet If you are not an employee who receives wages subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez 2012 worksheet For the 2013 calendar year, file your return by June 16, 2014. 1040ez 2012 worksheet For more information on when and where to file, see chapter 7 . 1040ez 2012 worksheet A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. 1040ez 2012 worksheet If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). 1040ez 2012 worksheet If you are a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. 1040ez 2012 worksheet Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. 1040ez 2012 worksheet See Identification Number in chapter 5 for more information. 1040ez 2012 worksheet Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. 1040ez 2012 worksheet However, nonresident aliens married to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens or residents can choose to be treated as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet residents and file joint returns. 1040ez 2012 worksheet For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Assuming both of you had these visas for all of last year, you are a resident alien. 1040ez 2012 worksheet Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. 1040ez 2012 worksheet You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. 1040ez 2012 worksheet Your husband must file Form 1040NR or 1040NR-EZ. 1040ez 2012 worksheet No. 1040ez 2012 worksheet A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez 2012 worksheet See Effect of Tax Treaties in chapter 1. 1040ez 2012 worksheet You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. 1040ez 2012 worksheet See chapter 6 . 1040ez 2012 worksheet The following rules apply if the dividends and capital gains are not effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. 1040ez 2012 worksheet See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. 1040ez 2012 worksheet Dividends are generally taxed at a 30% (or lower treaty) rate. 1040ez 2012 worksheet The brokerage company or payor of the dividends should withhold this tax at source. 1040ez 2012 worksheet If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. 1040ez 2012 worksheet If the capital gains and dividends are effectively connected with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business, they are taxed according to the same rules and at the same rates that apply to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens and residents. 1040ez 2012 worksheet If you are a nonresident alien, 85% of any U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 1040ez 2012 worksheet See The 30% Tax in chapter 4. 1040ez 2012 worksheet If you are a nonresident alien and the scholarship is not from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources, it is not subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax. 1040ez 2012 worksheet See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources. 1040ez 2012 worksheet If your scholarship is from U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet sources or you are a resident alien, your scholarship is subject to U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax according to the following rules. 1040ez 2012 worksheet If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. 1040ez 2012 worksheet However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. 1040ez 2012 worksheet See Scholarships and Fellowship Grants in chapter 3 for more information. 1040ez 2012 worksheet If you are not a candidate for a degree, your scholarship is taxable. 1040ez 2012 worksheet Nonresident aliens cannot claim the standard deduction. 1040ez 2012 worksheet However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. 1040ez 2012 worksheet You cannot claim the standard deduction allowed on Form 1040. 1040ez 2012 worksheet However, you can itemize any allowable deductions. 1040ez 2012 worksheet Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. 1040ez 2012 worksheet However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet trade or business. 1040ez 2012 worksheet See Itemized Deductions in chapter 5. 1040ez 2012 worksheet Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizens. 1040ez 2012 worksheet However, nonresident aliens generally can claim only a personal exemption for themselves on their U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet tax return. 1040ez 2012 worksheet There are special rules for residents of Mexico, Canada, and South Korea; for U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet nationals; and for students and business apprentices from India. 1040ez 2012 worksheet See Exemptions in chapter 5. 1040ez 2012 worksheet As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 1040ez 2012 worksheet Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 1040ez 2012 worksheet The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 1040ez 2012 worksheet You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. 1040ez 2012 worksheet See chapter 6 for more information on dual-status aliens. 1040ez 2012 worksheet If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. 1040ez 2012 worksheet However, if you are married and choose to file a joint return with a U. 1040ez 2012 worksheet S. 1040ez 2012 worksheet citizen or resident spouse, you may be eligible for these credits. 1040ez 2012 worksheet See Nonresident Spouse Treated as a Resident in chapter 1. 1040ez 2012 worksheet Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose
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Consumer Protection Offices

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

State Consumer Protection Offices

Virgin Islands Department of Licensing and Consumer Affairs

Website: Virgin Islands Department of Licensing and Consumer Affairs

Address: Virgin Islands Department of Licensing and Consumer Affairs
3000 Golden Rock Shopping Center, Suite 9
St. Croix, VI 00820

Phone Number: 340-773-2226

Virgin Islands Department of Licensing and Consumer Affairs

Website: Virgin Islands Department of Licensing and Consumer Affairs

Address: Virgin Islands Department of Licensing and Consumer Affairs
Property and Procurement Bldg.
8201 Sub Base, Suite 1
St. Thomas, VI 00802

Phone Number: 340-774-3130

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Banking Authorities

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

Office of the Lieutenant Governor

Website: Office of the Lieutenant Governor

Address: Office of the Lieutenant Governor
Division of Banking and Insurance
5049 Kongens Gade
St. Thomas, VI 00802

Phone Number: 340-774-7166

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Insurance Regulators

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

Division of Banking and Insurance

Website: Division of Banking and Insurance

Address: Division of Banking and Insurance
5049 Kongens Gade
St. Thomas, VI 00802

Phone Number: 340-774-7166

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The 1040ez 2012 Worksheet

1040ez 2012 worksheet Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. 1040ez 2012 worksheet Property not disposed of or abandoned. 1040ez 2012 worksheet Special rule for normal retirements from item accounts. 1040ez 2012 worksheet Abandoned property. 1040ez 2012 worksheet Single item accounts. 1040ez 2012 worksheet Multiple property account. 1040ez 2012 worksheet Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. 1040ez 2012 worksheet If your property qualified for MACRS, you must depreciate it under MACRS. 1040ez 2012 worksheet See Publication 946. 1040ez 2012 worksheet However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. 1040ez 2012 worksheet Also, you can elect to exclude certain property from being depreciated under MACRS. 1040ez 2012 worksheet Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. 1040ez 2012 worksheet Intangible property. 1040ez 2012 worksheet   You cannot depreciate intangible property under ACRS or MACRS. 1040ez 2012 worksheet You depreciate intangible property using any other reasonable method, usually, the straight line method. 1040ez 2012 worksheet Note. 1040ez 2012 worksheet The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. 1040ez 2012 worksheet For more information, see chapter 12 of Publication 535. 1040ez 2012 worksheet Public utility property. 1040ez 2012 worksheet   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. 1040ez 2012 worksheet This type of property is subject to depreciation under a special rule. 1040ez 2012 worksheet Videocassettes. 1040ez 2012 worksheet   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. 1040ez 2012 worksheet You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. 1040ez 2012 worksheet The straight line method, salvage value, and useful life are discussed later under Methods To Use. 1040ez 2012 worksheet You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. 1040ez 2012 worksheet How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. 1040ez 2012 worksheet These methods are straight line and declining balance. 1040ez 2012 worksheet To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. 1040ez 2012 worksheet They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. 1040ez 2012 worksheet The amount of the deduction in any year also depends on which method of depreciation you choose. 1040ez 2012 worksheet Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. 1040ez 2012 worksheet The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. 1040ez 2012 worksheet Your original basis is usually the purchase price. 1040ez 2012 worksheet However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. 1040ez 2012 worksheet Adjusted basis. 1040ez 2012 worksheet   Events will often change the basis of property. 1040ez 2012 worksheet When this occurs, the changed basis is called the adjusted basis. 1040ez 2012 worksheet Some events, such as improvements you make, increase basis. 1040ez 2012 worksheet Events such as deducting casualty losses and depreciation decrease basis. 1040ez 2012 worksheet If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. 1040ez 2012 worksheet   Publication 551 explains how to figure basis for property acquired in different ways. 1040ez 2012 worksheet It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. 1040ez 2012 worksheet Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. 1040ez 2012 worksheet It is the length of time over which you will make yearly depreciation deductions of your basis in the property. 1040ez 2012 worksheet It is how long it will continue to be useful to you, not how long the property will last. 1040ez 2012 worksheet Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. 1040ez 2012 worksheet The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. 1040ez 2012 worksheet Consider all these factors before you arrive at a useful life for your property. 1040ez 2012 worksheet The useful life of the same type of property varies from user to user. 1040ez 2012 worksheet When you determine the useful life of your property, keep in mind your own experience with similar property. 1040ez 2012 worksheet You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. 1040ez 2012 worksheet Change in useful life. 1040ez 2012 worksheet   You base your estimate of useful life on certain facts. 1040ez 2012 worksheet If these facts change significantly, you can adjust your estimate of the remaining useful life. 1040ez 2012 worksheet However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. 1040ez 2012 worksheet Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. 1040ez 2012 worksheet You generally cannot depreciate property below a reasonable salvage value. 1040ez 2012 worksheet Determining salvage value. 1040ez 2012 worksheet   Salvage value is the estimated value of property at the end of its useful life. 1040ez 2012 worksheet It is what you expect to get for the property if you sell it after you can no longer use it productively. 1040ez 2012 worksheet You must estimate the salvage value of a piece of property when you first acquire it. 1040ez 2012 worksheet   Salvage value is affected both by how you use the property and how long you use it. 1040ez 2012 worksheet If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. 1040ez 2012 worksheet However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. 1040ez 2012 worksheet Changing salvage value. 1040ez 2012 worksheet   Once you determine the salvage value for property, you should not change it merely because prices have changed. 1040ez 2012 worksheet However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. 1040ez 2012 worksheet When you redetermine the salvage value, take into account the facts that exist at the time. 1040ez 2012 worksheet Net salvage. 1040ez 2012 worksheet   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. 1040ez 2012 worksheet You can choose either salvage value or net salvage when you figure depreciation. 1040ez 2012 worksheet You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. 1040ez 2012 worksheet However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. 1040ez 2012 worksheet Your salvage value can never be less than zero. 1040ez 2012 worksheet Ten percent rule. 1040ez 2012 worksheet   If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. 1040ez 2012 worksheet You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. 1040ez 2012 worksheet If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. 1040ez 2012 worksheet Methods To Use Two methods of depreciation are the straight line and declining balance methods. 1040ez 2012 worksheet If ACRS or MACRS does not apply, you can use one of these methods. 1040ez 2012 worksheet The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. 1040ez 2012 worksheet Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. 1040ez 2012 worksheet One of these methods was the straight line method. 1040ez 2012 worksheet This method was also used for intangible property. 1040ez 2012 worksheet It lets you deduct the same amount of depreciation each year. 1040ez 2012 worksheet To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. 1040ez 2012 worksheet Subtract the salvage value, if any, from the adjusted basis. 1040ez 2012 worksheet The balance is the total amount of depreciation you can take over the useful life of the property. 1040ez 2012 worksheet Divide the balance by the number of years remaining in the useful life. 1040ez 2012 worksheet This gives you the amount of your yearly depreciation deduction. 1040ez 2012 worksheet Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. 1040ez 2012 worksheet If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. 1040ez 2012 worksheet Example. 1040ez 2012 worksheet In April 1994, Frank bought a franchise for $5,600. 1040ez 2012 worksheet It expires in 10 years. 1040ez 2012 worksheet This property is intangible property that cannot be depreciated under MACRS. 1040ez 2012 worksheet Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. 1040ez 2012 worksheet He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). 1040ez 2012 worksheet He must prorate the $560 for his 9 months of use in 1994. 1040ez 2012 worksheet This gives him a deduction of $420 ($560 ÷ 9/12). 1040ez 2012 worksheet In 1995, Frank can deduct $560 for the full year. 1040ez 2012 worksheet Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. 1040ez 2012 worksheet The rate cannot be more than twice the straight line rate. 1040ez 2012 worksheet Rate of depreciation. 1040ez 2012 worksheet   Under this method, you must determine your declining balance rate of depreciation. 1040ez 2012 worksheet The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. 1040ez 2012 worksheet (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. 1040ez 2012 worksheet ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. 1040ez 2012 worksheet Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. 1040ez 2012 worksheet Depreciation deductions. 1040ez 2012 worksheet   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. 1040ez 2012 worksheet This gives you the amount of your deduction. 1040ez 2012 worksheet For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). 1040ez 2012 worksheet To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. 1040ez 2012 worksheet Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). 1040ez 2012 worksheet Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). 1040ez 2012 worksheet Your depreciation deduction for the second year is $1,600. 1040ez 2012 worksheet   As you can see from this example, your adjusted basis in the property gets smaller each year. 1040ez 2012 worksheet Also, under this method, deductions are larger in the earlier years and smaller in the later years. 1040ez 2012 worksheet You can make a change to the straight line method without consent. 1040ez 2012 worksheet Salvage value. 1040ez 2012 worksheet   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. 1040ez 2012 worksheet However, you cannot depreciate the property below its reasonable salvage value. 1040ez 2012 worksheet Determine salvage value using the rules discussed earlier, including the special 10% rule. 1040ez 2012 worksheet Example. 1040ez 2012 worksheet If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. 1040ez 2012 worksheet But if your estimate of salvage value was $900, you can only deduct $100. 1040ez 2012 worksheet This is because $100 is the amount that would lower your adjusted basis to equal salvage value. 1040ez 2012 worksheet Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. 1040ez 2012 worksheet You can group the videocassettes by title for making this projection. 1040ez 2012 worksheet You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. 1040ez 2012 worksheet The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. 1040ez 2012 worksheet For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. 1040ez 2012 worksheet How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. 1040ez 2012 worksheet If you change your method of depreciation, it is generally a change in your method of accounting. 1040ez 2012 worksheet You must get IRS consent before making the change. 1040ez 2012 worksheet However, you do not need permission for certain changes in your method of depreciation. 1040ez 2012 worksheet The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. 1040ez 2012 worksheet For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. 1040ez 2012 worksheet Change to the straight line method. 1040ez 2012 worksheet   You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. 1040ez 2012 worksheet However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. 1040ez 2012 worksheet When the change is made, figure depreciation based on your adjusted basis in the property at that time. 1040ez 2012 worksheet Your adjusted basis takes into account all previous depreciation deductions. 1040ez 2012 worksheet Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. 1040ez 2012 worksheet   You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. 1040ez 2012 worksheet You cannot make the change on an amended return filed after the due date of the original return (including extensions). 1040ez 2012 worksheet   When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. 1040ez 2012 worksheet   After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. 1040ez 2012 worksheet Changes that require permission. 1040ez 2012 worksheet   For most other changes in method of depreciation, you must get permission from the IRS. 1040ez 2012 worksheet To request a change in method of depreciation, file Form 3115. 1040ez 2012 worksheet File the application within the first 180 days of the tax year the change is to become effective. 1040ez 2012 worksheet In most cases, there is a user fee that must accompany Form 3115. 1040ez 2012 worksheet See the instructions for Form 3115 to determine if a fee is required. 1040ez 2012 worksheet Changes granted automatically. 1040ez 2012 worksheet   The IRS automatically approves certain changes of a method of depreciation. 1040ez 2012 worksheet But, you must file Form 3115 for these automatic changes. 1040ez 2012 worksheet   However, IRS can deny permission if Form 3115 is not filed on time. 1040ez 2012 worksheet For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. 1040ez 2012 worksheet B. 1040ez 2012 worksheet 420. 1040ez 2012 worksheet Changes for which approval is not automatic. 1040ez 2012 worksheet   The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. 1040ez 2012 worksheet   You must request and receive permission for these changes. 1040ez 2012 worksheet To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. 1040ez 2012 worksheet Change from an improper method. 1040ez 2012 worksheet   If the IRS disallows the method you are using, you do not need permission to change to a proper method. 1040ez 2012 worksheet You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. 1040ez 2012 worksheet If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. 1040ez 2012 worksheet However, you must file the amended return before the filing date for the next tax year. 1040ez 2012 worksheet Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. 1040ez 2012 worksheet You can do this by selling, exchanging, or abandoning the item of property. 1040ez 2012 worksheet You can also withdraw it from use without disposing of it. 1040ez 2012 worksheet For example, you could place it in a supplies or scrap account. 1040ez 2012 worksheet Retirements can be either normal or abnormal depending on all facts and circumstances. 1040ez 2012 worksheet The rules discussed next do not apply to MACRS and ACRS property. 1040ez 2012 worksheet Normal retirement. 1040ez 2012 worksheet   A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. 1040ez 2012 worksheet A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. 1040ez 2012 worksheet Abnormal retirement. 1040ez 2012 worksheet   A retirement can be abnormal if you withdraw the property early or under other circumstances. 1040ez 2012 worksheet For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. 1040ez 2012 worksheet Gain or loss on retirement. 1040ez 2012 worksheet   There are special rules for figuring the gain or loss on retirement of property. 1040ez 2012 worksheet The gain or loss will depend on several factors. 1040ez 2012 worksheet These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. 1040ez 2012 worksheet A single property account contains only one item of property. 1040ez 2012 worksheet A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. 1040ez 2012 worksheet Sale or exchange. 1040ez 2012 worksheet   If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. 1040ez 2012 worksheet See Publication 544. 1040ez 2012 worksheet Property not disposed of or abandoned. 1040ez 2012 worksheet   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. 1040ez 2012 worksheet You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. 1040ez 2012 worksheet However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. 1040ez 2012 worksheet   To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. 1040ez 2012 worksheet Special rule for normal retirements from item accounts. 1040ez 2012 worksheet   You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. 1040ez 2012 worksheet However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. 1040ez 2012 worksheet   If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. 1040ez 2012 worksheet Abandoned property. 1040ez 2012 worksheet   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. 1040ez 2012 worksheet However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. 1040ez 2012 worksheet Basis of property retired. 1040ez 2012 worksheet   The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. 1040ez 2012 worksheet Single item accounts. 1040ez 2012 worksheet   If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. 1040ez 2012 worksheet This is generally the cost or other basis of the item of property less depreciation. 1040ez 2012 worksheet See Publication 551. 1040ez 2012 worksheet Multiple property account. 1040ez 2012 worksheet   For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. 1040ez 2012 worksheet If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. 1040ez 2012 worksheet   You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. 1040ez 2012 worksheet The method of depreciation used for the multiple property account is used. 1040ez 2012 worksheet You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. 1040ez 2012 worksheet Prev  Up  Next   Home   More Online Publications