File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

1040nr 2013

2012 Tax Forms 1040Does A Student Need To File Taxes2010 Tax PreparationForgot To File Taxes 2012Free State Income Tax Filing OnlineFile 2006 Tax Return FreeAmending A Tax Return2011 1040ez Tax Form2006 Tax Return Software FreeForm To Amend TaxesFree File 2012 TaxesFederal Income Tax Form 1040xE-file State Return OnlyPrintable 2011 Tax FormsH And R Block Free Tax PreparationAmend 2011 Tax ReturnIrs 1040xIrs Gov 1040xFree Amended Tax ReturnH And R Block 1040xHr Block Tax ReturnsFile My 2010 Taxes FreeIrs Efile 2012Can You File Your 2011 Taxes To 2013 FilingTurbotax 20122008 Tax Forms1040 Ez FormFree Tax Filing 2014Irs Extension Form 2012Free Online Tax PreparationHow To Amend Tax ReturnNeed Amend My 2009 TaxesFree File 2010 TaxesNj 1040ez2005 Tax PreparationTurbo Tax 2006Filling Out 1040x OnlineFederal Tax Forms 2012Free Tax Preparation For MilitaryHow To File 2012 Taxes

1040nr 2013

1040nr 2013 6. 1040nr 2013   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. 1040nr 2013  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). 1040nr 2013 For more information, see the retiree drug subsidy frequently asked questions on IRS. 1040nr 2013 gov. 1040nr 2013 Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. 1040nr 2013 However, you may have to capitalize certain insurance costs under the uniform capitalization rules. 1040nr 2013 For more information, see Capitalized Premiums , later. 1040nr 2013 Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. 1040nr 2013 S. 1040nr 2013 Individual Income Tax Return See chapter 12 for information about getting publications and forms. 1040nr 2013 Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. 1040nr 2013 Insurance that covers fire, storm, theft, accident, or similar losses. 1040nr 2013 Credit insurance that covers losses from business bad debts. 1040nr 2013 Group hospitalization and medical insurance for employees, including long-term care insurance. 1040nr 2013 If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. 1040nr 2013 If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. 1040nr 2013 See Publication 15-B. 1040nr 2013 Liability insurance. 1040nr 2013 Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. 1040nr 2013 Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. 1040nr 2013 If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. 1040nr 2013 If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. 1040nr 2013 Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. 1040nr 2013 Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. 1040nr 2013 Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. 1040nr 2013 If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. 1040nr 2013 If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. 1040nr 2013 Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. 1040nr 2013 Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. 1040nr 2013 Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. 1040nr 2013 The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 1040nr 2013 A child includes your son, daughter, stepchild, adopted child, or foster child. 1040nr 2013 A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040nr 2013 One of the following statements must be true. 1040nr 2013 You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. 1040nr 2013 You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 1040nr 2013 , box 14, code A. 1040nr 2013 You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. 1040nr 2013 You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. 1040nr 2013 Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. 1040nr 2013 The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. 1040nr 2013 For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. 1040nr 2013 For partners, a policy can be either in the name of the partnership or in the name of the partner. 1040nr 2013 You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 1040nr 2013 However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 1040nr 2013 Otherwise, the insurance plan will not be considered to be established under your business. 1040nr 2013 For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. 1040nr 2013 You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. 1040nr 2013 However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. 1040nr 2013 Otherwise, the insurance plan will not be considered to be established under your business. 1040nr 2013 Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. 1040nr 2013 If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. 1040nr 2013 For more information, see Form 1040X, Amended U. 1040nr 2013 S. 1040nr 2013 Individual Income Tax Return. 1040nr 2013 Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. 1040nr 2013 Take the deduction on Form 1040, line 29. 1040nr 2013 Qualified long-term care insurance. 1040nr 2013   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. 1040nr 2013 But, for each person covered, you can include only the smaller of the following amounts. 1040nr 2013 The amount paid for that person. 1040nr 2013 The amount shown below. 1040nr 2013 Use the person's age at the end of the tax year. 1040nr 2013 Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. 1040nr 2013   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. 1040nr 2013 The contract must meet all the following requirements. 1040nr 2013 It must be guaranteed renewable. 1040nr 2013 It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. 1040nr 2013 It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. 1040nr 2013 It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. 1040nr 2013 Qualified long-term care services. 1040nr 2013   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. 1040nr 2013 The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. 1040nr 2013 Worksheet 6-A. 1040nr 2013 Self-Employed Health Insurance Deduction Worksheet Note. 1040nr 2013 Use a separate worksheet for each trade or business under which an insurance plan is established. 1040nr 2013 1. 1040nr 2013 Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. 1040nr 2013 Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 1040nr 2013 But do not include the following. 1040nr 2013   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 1040nr 2013 Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. 1040nr 2013 Any amounts you included on Form 8885, line 4. 1040nr 2013 Any qualified health insurance premiums you paid to “U. 1040nr 2013 S. 1040nr 2013 Treasury-HCTC. 1040nr 2013 ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. 1040nr 2013 Any payments for qualified long-term care insurance (see line 2) 1. 1040nr 2013   2. 1040nr 2013 For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. 1040nr 2013       a) Total payments made for that person during the year. 1040nr 2013       b) The amount shown below. 1040nr 2013 Use the person's age at the end of the tax year. 1040nr 2013         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 1040nr 2013 If more than one person is covered, figure separately the amount to enter for each person. 1040nr 2013 Then enter the total of those amounts 2. 1040nr 2013   3. 1040nr 2013 Add lines 1 and 2 3. 1040nr 2013   4. 1040nr 2013 Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. 1040nr 2013 Do not include Conservation Reserve Program payments exempt from self-employment tax. 1040nr 2013 If the business is an S corporation, skip to line 11 4. 1040nr 2013   5. 1040nr 2013 Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. 1040nr 2013 Do not include Conservation Reserve Program payments exempt from self-employment tax. 1040nr 2013 See the Instructions for Schedule SE (Form 1040). 1040nr 2013 Do not include any net losses shown on these schedules. 1040nr 2013 5. 1040nr 2013   6. 1040nr 2013 Divide line 4 by line 5 6. 1040nr 2013   7. 1040nr 2013 Multiply Form 1040, line 27, by the percentage on line 6 7. 1040nr 2013   8. 1040nr 2013 Subtract line 7 from line 4 8. 1040nr 2013   9. 1040nr 2013 Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. 1040nr 2013   10. 1040nr 2013 Subtract line 9 from line 8 10. 1040nr 2013   11. 1040nr 2013 Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. 1040nr 2013   12. 1040nr 2013 Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. 1040nr 2013   13. 1040nr 2013 Subtract line 12 from line 10 or 11, whichever applies 13. 1040nr 2013   14. 1040nr 2013 Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. 1040nr 2013 Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). 1040nr 2013 14. 1040nr 2013   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. 1040nr 2013 Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. 1040nr 2013 * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. 1040nr 2013 However, it does not include capital gain income. 1040nr 2013 Chronically ill individual. 1040nr 2013   A chronically ill individual is a person who has been certified as one of the following. 1040nr 2013 An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. 1040nr 2013 Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. 1040nr 2013 An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 1040nr 2013 The certification must have been made by a licensed health care practitioner within the previous 12 months. 1040nr 2013 Benefits received. 1040nr 2013   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. 1040nr 2013 Other coverage. 1040nr 2013   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. 1040nr 2013 In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. 1040nr 2013   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. 1040nr 2013 However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. 1040nr 2013 Effect on itemized deductions. 1040nr 2013   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. 1040nr 2013 Effect on self-employment tax. 1040nr 2013   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. 1040nr 2013 For more information, see Schedule SE (Form 1040). 1040nr 2013 How to figure the deduction. 1040nr 2013   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. 1040nr 2013 However, if any of the following apply, you must use Worksheet 6-A in this chapter. 1040nr 2013 You had more than one source of income subject to self-employment tax. 1040nr 2013 You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. 1040nr 2013 You are using amounts paid for qualified long-term care insurance to figure the deduction. 1040nr 2013 If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. 1040nr 2013 Health coverage tax credit. 1040nr 2013   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. 1040nr 2013 Use Form 8885 to figure the amount, if any, of this credit. 1040nr 2013   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. 1040nr 2013 Any amounts you included on Form 8885, line 4. 1040nr 2013 Any qualified health insurance premiums you paid to “U. 1040nr 2013 S. 1040nr 2013 Treasury-HCTC. 1040nr 2013 ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. 1040nr 2013 More than one health plan and business. 1040nr 2013   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. 1040nr 2013 Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). 1040nr 2013 For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. 1040nr 2013 Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. 1040nr 2013 Self-insurance reserve funds. 1040nr 2013 You cannot deduct amounts credited to a reserve set up for self-insurance. 1040nr 2013 This applies even if you cannot get business insurance coverage for certain business risks. 1040nr 2013 However, your actual losses may be deductible. 1040nr 2013 See Publication 547. 1040nr 2013 Loss of earnings. 1040nr 2013 You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. 1040nr 2013 However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. 1040nr 2013 Certain life insurance and annuities. 1040nr 2013 For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. 1040nr 2013 You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. 1040nr 2013 A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. 1040nr 2013 For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. 1040nr 2013 The disallowance applies without regard to whom the policy covers. 1040nr 2013 Partners. 1040nr 2013 If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. 1040nr 2013 You cannot deduct the insurance premiums. 1040nr 2013 Insurance to secure a loan. 1040nr 2013 If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. 1040nr 2013 Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. 1040nr 2013 In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. 1040nr 2013 Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. 1040nr 2013 Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. 1040nr 2013 You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. 1040nr 2013 Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. 1040nr 2013 Uniform capitalization rules. 1040nr 2013   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. 1040nr 2013 Produce real property or tangible personal property. 1040nr 2013 For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. 1040nr 2013 Acquire property for resale. 1040nr 2013 However, these rules do not apply to the following property. 1040nr 2013 Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. 1040nr 2013 Property you produce if you meet either of the following conditions. 1040nr 2013 Your indirect costs of producing the property are $200,000 or less. 1040nr 2013 You use the cash method of accounting and do not account for inventories. 1040nr 2013 More information. 1040nr 2013   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. 1040nr 2013 When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. 1040nr 2013 Cash method. 1040nr 2013   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. 1040nr 2013 However, see Prepayment , later. 1040nr 2013 Accrual method. 1040nr 2013   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. 1040nr 2013 In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). 1040nr 2013 For more information about the accrual method of accounting, see chapter 1. 1040nr 2013 For information about the exception for recurring items, see Publication 538. 1040nr 2013 Prepayment. 1040nr 2013   You cannot deduct expenses in advance, even if you pay them in advance. 1040nr 2013 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. 1040nr 2013   Expenses such as insurance are generally allocable to a period of time. 1040nr 2013 You can deduct insurance expenses for the year to which they are allocable. 1040nr 2013 Example. 1040nr 2013 In 2013, you signed a 3-year insurance contract. 1040nr 2013 Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. 1040nr 2013 You can deduct in 2014 and 2015 the premium allocable to those years. 1040nr 2013 Dividends received. 1040nr 2013   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. 1040nr 2013 For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. 1040nr 2013 Prev  Up  Next   Home   More Online Publications
Español

Defense Acquisition University

The Defense Acuisition University provides ongoing technology, logistics and acquisitions training to military personnel.

Contact the Agency or Department

Website: Defense Acquisition University

Contact In-Person: Locations

E-mail:

Address: 9820 Belvoir Rd
Fort Belvoir, VA 22060

Phone Number: (703)805-3459

Toll-free: (866)568-6924

The 1040nr 2013

1040nr 2013 10. 1040nr 2013   Self-Employment (SE) Tax Table of Contents Who Must Pay SE Tax?Special Rules and Exceptions Figuring Earnings Subject to SE Tax Farm Optional Method Using Both Optional Methods Reporting Self-Employment Tax The SE tax rules apply no matter how old you are and even if you are already receiving social security and Medicare benefits. 1040nr 2013 Who Must Pay SE Tax? Generally, you must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. 1040nr 2013 Use Schedule SE to figure net earnings from self-employment. 1040nr 2013 Sole proprietor or independent contractor. 1040nr 2013   If you are self-employed as a sole proprietor or independent contractor, you generally use Schedule C or C-EZ (Form 1040) to figure your earnings subject to SE tax. 1040nr 2013 SE tax rate. 1040nr 2013    For 2013, the SE tax rate on net earnings is 15. 1040nr 2013 3% (12. 1040nr 2013 4% social security tax plus 2. 1040nr 2013 9% Medicare tax). 1040nr 2013 Maximum earnings subject to self-employment tax. 1040nr 2013    Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. 1040nr 2013 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. 1040nr 2013   All of your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. 1040nr 2013 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. 1040nr 2013   If your wages and tips are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. 1040nr 2013 4% social security part of the SE tax on any of your net earnings. 1040nr 2013 However, you must pay the 2. 1040nr 2013 9% Medicare part of the SE tax on all your net earnings. 1040nr 2013 Special Rules and Exceptions Aliens. 1040nr 2013   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. 1040nr 2013 S. 1040nr 2013 citizens. 1040nr 2013 Nonresident aliens are not subject to SE tax unless an international social security agreement in effect determines that they are covered under the U. 1040nr 2013 S. 1040nr 2013 social security system. 1040nr 2013 However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. 1040nr 2013 S. 1040nr 2013 residents for self-employment tax purposes. 1040nr 2013 For more information on aliens, see Publication 519, U. 1040nr 2013 S. 1040nr 2013 Tax Guide for Aliens. 1040nr 2013 Child employed by parent. 1040nr 2013   You are not subject to SE tax if you are under age 18 and you are working for your father or mother. 1040nr 2013 Church employee. 1040nr 2013    If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108. 1040nr 2013 28 or more in wages from the church or organization. 1040nr 2013 For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 1040nr 2013 Fishing crew member. 1040nr 2013   If you are a member of the crew on a boat that catches fish or other water life, your earnings are subject to SE tax if all the following conditions apply. 1040nr 2013 You do not get any pay for the work except your share of the catch or a share of the proceeds from the sale of the catch, unless the pay meets all the following conditions. 1040nr 2013 The pay is not more than $100 per trip. 1040nr 2013 The pay is received only if there is a minimum catch. 1040nr 2013 The pay is solely for additional duties (such as mate, engineer, or cook) for which additional cash pay is traditional in the fishing industry. 1040nr 2013 You get a share of the catch or a share of the proceeds from the sale of the catch. 1040nr 2013 Your share depends on the amount of the catch. 1040nr 2013 The boat's operating crew normally numbers fewer than 10 individuals. 1040nr 2013 (An operating crew is considered as normally made up of fewer than 10 if the average size of the crew on trips made during the last four calendar quarters is fewer than 10. 1040nr 2013 ) Notary public. 1040nr 2013   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ but are not subject to self-employment tax (see the Instructions for Schedule SE (Form 1040)). 1040nr 2013 State or local government employee. 1040nr 2013   You are subject to SE tax if you are an employee of a state or local government, are paid solely on a fee basis, and your services are not covered under a federal-state social security agreement. 1040nr 2013 Foreign government or international organization employee. 1040nr 2013   You are subject to SE tax if both the following conditions are true. 1040nr 2013 You are a U. 1040nr 2013 S. 1040nr 2013 citizen employed in the United States, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or the Virgin Islands by: A foreign government, A wholly-owned agency of a foreign government, or An international organization. 1040nr 2013 Your employer is not required to withhold social security and Medicare taxes from your wages. 1040nr 2013 U. 1040nr 2013 S. 1040nr 2013 citizen or resident alien residing abroad. 1040nr 2013    If you are a self-employed U. 1040nr 2013 S. 1040nr 2013 citizen or resident alien living outside the United States, in most cases you must pay SE tax. 1040nr 2013 Do not reduce your foreign earnings from self-employment by your foreign earned income exclusion. 1040nr 2013 Exception. 1040nr 2013    The United States has social security agreements with many countries to eliminate double taxation under two social security systems. 1040nr 2013 Under these agreements, you generally must only pay social security and Medicare taxes to the country in which you live. 1040nr 2013 The country to which you must pay the tax will issue a certificate which serves as proof of exemption from social security tax in the other country. 1040nr 2013   For more information, see the Instructions for Schedule SE (Form 1040). 1040nr 2013 More Than One Business If you have earnings subject to SE tax from more than one trade, business, or profession, you must combine the net profit (or loss) from each to determine your total earnings subject to SE tax. 1040nr 2013 A loss from one business reduces your profit from another business. 1040nr 2013 Community Property Income If any of the income from a trade or business, other than a partnership, is community property income under state law, it is included in the earnings subject to SE tax of the spouse carrying on the trade or business. 1040nr 2013 Gain or Loss Do not include in earnings subject to SE tax a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. 1040nr 2013 It does not matter whether the disposition is a sale, exchange, or an involuntary conversion. 1040nr 2013 Lost Income Payments If you are self-employed and reduce or stop your business activities, any payment you receive from insurance or other sources for the lost business income is included in earnings subject to SE tax. 1040nr 2013 If you are not working when you receive the payment, it still relates to your business and is included in earnings subject to SE tax, even though your business is temporarily inactive. 1040nr 2013 Figuring Earnings Subject to SE Tax Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. 1040nr 2013 The regular method. 1040nr 2013 The nonfarm optional method. 1040nr 2013 The farm optional method. 1040nr 2013 You must use the regular method unless you are eligible to use one or both of the optional methods. 1040nr 2013 Why use an optional method?    You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. 1040nr 2013 You want to receive credit for social security benefit coverage. 1040nr 2013 You incurred child or dependent care expenses for which you could claim a credit. 1040nr 2013 (An optional method may increase your earned income, which could increase your credit. 1040nr 2013 ) You are entitled to the earned income credit. 1040nr 2013 (An optional method may increase your earned income, which could increase your credit. 1040nr 2013 ) You are entitled to the additional child tax credit. 1040nr 2013 (An optional method may increase your earned income, which could increase your credit. 1040nr 2013 ) Effects of using an optional method. 1040nr 2013   Using an optional method could increase your SE tax. 1040nr 2013 Paying more SE tax could result in your getting higher benefits when you retire. 1040nr 2013   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller tax or no tax using the regular method. 1040nr 2013   The optional methods may be used only to figure your SE tax. 1040nr 2013 To figure your income tax, include your actual earnings in gross income, regardless of which method you use to determine SE tax. 1040nr 2013 Regular Method Multiply your total earnings subject to SE tax by 92. 1040nr 2013 35% (. 1040nr 2013 9235) to get your net earnings under the regular method. 1040nr 2013 See Short Schedule SE, line 4, or Long Schedule SE, line 4a. 1040nr 2013 Net earnings figured using the regular method are also called actual net earnings. 1040nr 2013 Nonfarm Optional Method Use the nonfarm optional method only for earnings that do not come from farming. 1040nr 2013 You may use this method if you meet all the following tests. 1040nr 2013 You are self-employed on a regular basis. 1040nr 2013 This means that your actual net earnings from self-employment were $400 or more in at least 2 of the 3 tax years before the one for which you use this method. 1040nr 2013 The net earnings can be from either farm or nonfarm earnings or both. 1040nr 2013 You have used this method less than 5 years. 1040nr 2013 (There is a 5-year lifetime limit. 1040nr 2013 ) The years do not have to be one after another. 1040nr 2013 Your net nonfarm profits were: Less than $5,024, and Less than 72. 1040nr 2013 189% of your gross nonfarm income. 1040nr 2013 Net nonfarm profits. 1040nr 2013   Net nonfarm profit generally is the total of the amounts from: Line 31, Schedule C (Form 1040), Line 3, Schedule C-EZ (Form 1040), Box 14, code A, Schedule K-1 (Form 1065) (from nonfarm partnerships), and Box 9, code J1, Schedule K-1 (Form 1065-B). 1040nr 2013   However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. 1040nr 2013 Gross nonfarm income. 1040nr 2013   Your gross nonfarm income generally is the total of the amounts from: Line 7, Schedule C (Form 1040), Line 1, Schedule C-EZ (Form 1040), Box 14, code C, Schedule K-1 (Form 1065) (from nonfarm partnerships), and Box 9, code J2, Schedule K-1 (Form 1065-B). 1040nr 2013 Figuring Nonfarm Net Earnings If you meet the three tests explained earlier, use the following table to figure your net earnings from self-employment under the nonfarm optional method. 1040nr 2013 Table 10-1. 1040nr 2013 Figuring Nonfarm Net Earnings IF your gross nonfarm income is. 1040nr 2013 . 1040nr 2013 . 1040nr 2013 THEN your net earnings are equal to. 1040nr 2013 . 1040nr 2013 . 1040nr 2013 $6,960 or less Two-thirds of your gross nonfarm income. 1040nr 2013 More than $6,960 $4,640 Actual net earnings. 1040nr 2013   Your actual net earnings are 92. 1040nr 2013 35% of your total earnings subject to SE tax (that is, multiply total earnings subject to SE tax by 92. 1040nr 2013 35% (. 1040nr 2013 9235) to get actual net earnings). 1040nr 2013 Actual net earnings are equivalent to net earnings figured using the regular method. 1040nr 2013 Optional net earnings less than actual net earnings. 1040nr 2013   You cannot use this method to report an amount less than your actual net earnings from self-employment. 1040nr 2013 Gross nonfarm income of $6,960 or less. 1040nr 2013   The following examples illustrate how to figure net earnings when gross nonfarm income is $6,960 or less. 1040nr 2013 Example 1. 1040nr 2013 Net nonfarm profit less than $5,024 and less than 72. 1040nr 2013 189% of gross nonfarm income. 1040nr 2013 Ann Green runs a craft business. 1040nr 2013 Her actual net earnings from self-employment were $800 in 2011 and $900 in 2012. 1040nr 2013 She meets the test for being self-employed on a regular basis. 1040nr 2013 She has used the nonfarm optional method less than 5 years. 1040nr 2013 Her gross income and net profit in 2013 are as follows: Gross nonfarm income $5,400 Net nonfarm profit $1,200 Ann's actual net earnings for 2013 are $1,108 ($1,200 × . 1040nr 2013 9235). 1040nr 2013 Because her net profit is less than $5,024 and less than 72. 1040nr 2013 189% of her gross income, she can use the nonfarm optional method to figure net earnings of $3,600 (2/3 × $5,400). 1040nr 2013 Because these net earnings are higher than her actual net earnings, she can report net earnings of $3,600 for 2013. 1040nr 2013 Example 2. 1040nr 2013 Net nonfarm profit less than $5,024 but not less than 72. 1040nr 2013 189% of gross nonfarm income. 1040nr 2013 Assume that in Example 1 Ann's gross income is $1,000 and her net profit is $800. 1040nr 2013 She must use the regular method to figure her net earnings. 1040nr 2013 She cannot use the nonfarm optional method because her net profit is not less than 72. 1040nr 2013 189% of her gross income. 1040nr 2013 Example 3. 1040nr 2013 Net loss from a nonfarm business. 1040nr 2013 Assume that in Example 1 Ann has a net loss of $700. 1040nr 2013 She can use the nonfarm optional method and report $3,600 (2/3 × $5,400) as her net earnings. 1040nr 2013 Example 4. 1040nr 2013 Nonfarm net earnings less than $400. 1040nr 2013 Assume that in Example 1 Ann has gross income of $525 and a net profit of $175. 1040nr 2013 In this situation, she would not pay any SE tax under either the regular method or the nonfarm optional method because her net earnings under both methods are less than $400. 1040nr 2013 Gross nonfarm income of more than $6,960. 1040nr 2013   The following examples illustrate how to figure net earnings when gross nonfarm income is more than $6,960. 1040nr 2013 Example 1. 1040nr 2013 Net nonfarm profit less than $5,024 and less than 72. 1040nr 2013 189% of gross nonfarm income. 1040nr 2013 John White runs an appliance repair shop. 1040nr 2013 His actual net earnings from self-employment were $10,500 in 2011 and $9,500 in 2012. 1040nr 2013 He meets the test for being self-employed on a regular basis. 1040nr 2013 He has used the nonfarm optional method less than 5 years. 1040nr 2013 His gross income and net profit in 2013 are as follows: Gross nonfarm income $12,000 Net nonfarm profit $1,200 John's actual net earnings for 2013 are $1,108 ($1,200 × . 1040nr 2013 9235). 1040nr 2013 Because his net profit is less than $5,024 and less than 72. 1040nr 2013 189% of his gross income, he can use the nonfarm optional method to figure net earnings of $4,640. 1040nr 2013 Because these net earnings are higher than his actual net earnings, he can report net earnings of $4,640 for 2013. 1040nr 2013 Example 2. 1040nr 2013 Net nonfarm profit not less than $5,024. 1040nr 2013 Assume that in Example 1 John's net profit is $5,400. 1040nr 2013 He must use the regular method. 1040nr 2013 He cannot use the nonfarm optional method because his net nonfarm profit is not less than $5,024. 1040nr 2013 Example 3. 1040nr 2013 Net loss from a nonfarm business. 1040nr 2013 Assume that in Example 1 John has a net loss of $700. 1040nr 2013 He can use the nonfarm optional method and report $4,640 as his net earnings from self-employment. 1040nr 2013 Farm Optional Method Use the farm optional method only for earnings from a farming business. 1040nr 2013 See Publication 225 for information about this method. 1040nr 2013 Using Both Optional Methods If you have both farm and nonfarm earnings, you may be able to use both optional methods to determine your net earnings from self-employment. 1040nr 2013 To figure your net earnings using both optional methods, you must: Figure your farm and nonfarm net earnings separately under each method. 1040nr 2013 Do not combine farm earnings with nonfarm earnings to figure your net earnings under either method. 1040nr 2013 Add the net earnings figured under each method to arrive at your total net earnings from self-employment. 1040nr 2013 You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. 1040nr 2013 If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. 1040nr 2013 Example. 1040nr 2013 You are a self-employed farmer. 1040nr 2013 You also operate a retail grocery store. 1040nr 2013 Your gross income, actual net earnings from self-employment, and optional farm and optional nonfarm net earnings from self-employment are shown in Table 10-2. 1040nr 2013 Table 10-2. 1040nr 2013 Example—Farm and Nonfarm Earnings Income and Earnings Farm Nonfarm Gross income $3,000 $6,000 Actual net earnings $900 $500 Optional net earnings (2/3 of gross income) $2,000 $4,000 Table 10-3 shows four methods or combinations of methods you can use to figure net earnings from self-employment using the farm and nonfarm gross income and actual net earnings shown in Table 10-2. 1040nr 2013 Method 1. 1040nr 2013 Using the regular method for both farm and nonfarm income. 1040nr 2013 Method 2. 1040nr 2013 Using the optional method for farm income and the regular method for nonfarm income. 1040nr 2013 Method 3. 1040nr 2013 Using the regular method for farm income and the optional method for nonfarm income. 1040nr 2013 Method 4. 1040nr 2013 Using the optional method for both farm and nonfarm income. 1040nr 2013 Note. 1040nr 2013 Actual net earnings is the same as net earnings figured using the regular method. 1040nr 2013 Table 10-3. 1040nr 2013 Example—Net Earnings Net Earnings 1 2 3 4 Actual  farm $ 900   $ 900   Optional  farm   $ 2,000   $ 2,000 Actual nonfarm $ 500 $ 500     Optional nonfarm     $4,000 $4,000 Amount you can report: $1,400 $2,500 $4,900 $4,640* *Limited to $4,640 because you used both optional methods. 1040nr 2013 Fiscal Year Filer If you use a tax year other than the calendar year, you must use the tax rate and maximum earnings limit in effect at the beginning of your tax year. 1040nr 2013 Even if the tax rate or maximum earnings limit changes during your tax year, continue to use the same rate and limit throughout your tax year. 1040nr 2013 Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. 1040nr 2013 Then enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. 1040nr 2013 Most taxpayers can use Section A—Short Schedule SE to figure their SE tax. 1040nr 2013 However, certain taxpayers must use Section B—Long Schedule SE. 1040nr 2013 If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. 1040nr 2013 Joint return. 1040nr 2013   Even if you file a joint return, you cannot file a joint Schedule SE. 1040nr 2013 This is true whether one spouse or both spouses have earnings subject to SE tax. 1040nr 2013 If both of you have earnings subject to SE tax, each of you must complete a separate Schedule SE. 1040nr 2013 However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. 1040nr 2013 Attach both schedules to the joint return. 1040nr 2013 More than one business. 1040nr 2013   If you have more than one trade or business, you must combine the net profit (or loss) from each business to figure your SE tax. 1040nr 2013 A loss from one business will reduce your profit from another business. 1040nr 2013 File one Schedule SE showing the earnings from self-employment, but file a separate Schedule C, C-EZ, or F for each business. 1040nr 2013 Example. 1040nr 2013 You are the sole proprietor of two separate businesses. 1040nr 2013 You operate a restaurant that made a net profit of $25,000. 1040nr 2013 You also have a cabinetmaking business that had a net loss of $500. 1040nr 2013 You must file a Schedule C for the restaurant showing your net profit of $25,000 and another Schedule C for the cabinetmaking business showing your net loss of $500. 1040nr 2013 You file Schedule SE showing total earnings subject to SE tax of $24,500. 1040nr 2013 Prev  Up  Next   Home   More Online Publications