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

2012 Free Taxes

File 2007 Tax Return Online FreeAmended Tax Returns More:label_amended_20tax_20returns More:taxesDo You File Taxes If You Are UnemployedTurbotax ComFree 1040ez FilingH&r Block At HomeH&r Block Online TaxesState Tax Forms 20122011 E File TaxesFree Online Tax Filing State And FederalH R Block Tax Service1040 Ez Form 2012Can I Efile My 2012 Tax ReturnTaxwise Software2010 Federal Tax ReturnIrs Filing DeadlineFile 2012 Taxes Online FreeIrs Form 1040xFree File Free 1040 Tax ReturnAmended 2012 Tax ReturnFile 2007 Taxes Free1040ez Form And Instructions1040 Easy1040ez Form 2013 Pdf2011 Tax Forms InstructionsState Taxes FormsMilitary Onesource Taxes1040a 20122012 TaxesTurbotax Amended Return 2011Turbotax 20111040 Ez Form 20121040 Income Tax FormsHow To Do Back Taxes4506t Ez Form2011 1040ezFree Tax Prep1040ez 2011 Pdf1040x Form And Instructions2011 1040 Income Tax Form

2012 Free Taxes

2012 free taxes Part One -   Fuel Taxes and Fuel Tax Credits and Refunds Chapter 1 defines the types of fuel, taxable events, and exemptions or exceptions to the fuel taxes. 2012 free taxes Chapter 2 provides information on, and definitions of, the nontaxable uses and explains how to make a claim. 2012 free taxes Table of Contents 1. 2012 free taxes   Fuel TaxesDefinitions Information Returns Registration RequirementsAdditional information. 2012 free taxes Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. 2012 free taxes Reseller statement. 2012 free taxes Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. 2012 free taxes Deep-draft ocean-going vessels. 2012 free taxes Passenger vessels. 2012 free taxes Ocean-going barges. 2012 free taxes State or local governments. 2012 free taxes Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel 2. 2012 free taxes   Fuel Tax Credits and RefundsGasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. 2012 free taxes Providing information. 2012 free taxes Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. 2012 free taxes Fuel used between airfield and farm. 2012 free taxes Fuel not used for farming. 2012 free taxes Vehicles not considered highway vehicles. 2012 free taxes Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Prev  Up  Next   Home   More Online Publications
Español

Transportation Security Administration (TSA)

The TSA can assist you with questions or concerns about travel tips, permitted and prohibited items, and information on filing a claim for items that were damaged or lost during a TSA screening.

Contact the Agency or Department

Website: Transportation Security Administration (TSA)

E-mail:

Address: 601 S. 12th St.
Arlington, VA 20598-6002

Toll-free: (866) 289-9673

The 2012 Free Taxes

2012 free taxes 2. 2012 free taxes   Source of Income Table of Contents Introduction Topics - This chapter discusses: Resident Aliens Nonresident AliensInterest Income Dividends Guarantee of Indebtedness Personal Services Transportation Income Scholarships, Grants, Prizes, and Awards Pensions and Annuities Rents or Royalties Real Property Personal Property Community Income Introduction After you have determined your alien status, you must determine the source of your income. 2012 free taxes This chapter will help you determine the source of different types of income you may receive during the tax year. 2012 free taxes This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. 2012 free taxes Topics - This chapter discusses: Income source rules, and Community income. 2012 free taxes Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. 2012 free taxes S. 2012 free taxes citizen. 2012 free taxes If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U. 2012 free taxes S. 2012 free taxes tax return. 2012 free taxes You must report these amounts from sources within and outside the United States. 2012 free taxes Nonresident Aliens A nonresident alien usually is subject to U. 2012 free taxes S. 2012 free taxes income tax only on U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes Under limited circumstances, certain foreign source income is subject to U. 2012 free taxes S. 2012 free taxes tax. 2012 free taxes See Foreign Income in chapter 4. 2012 free taxes The general rules for determining U. 2012 free taxes S. 2012 free taxes source income that apply to most nonresident aliens are shown in Table 2-1. 2012 free taxes The following discussions cover the general rules as well as the exceptions to these rules. 2012 free taxes Not all items of U. 2012 free taxes S. 2012 free taxes source income are taxable. 2012 free taxes See chapter 3. 2012 free taxes Interest Income Generally, U. 2012 free taxes S. 2012 free taxes source interest income includes the following items. 2012 free taxes Interest on bonds, notes, or other interest-bearing obligations of U. 2012 free taxes S. 2012 free taxes residents or domestic corporations. 2012 free taxes Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. 2012 free taxes S. 2012 free taxes trade or business at any time during the tax year. 2012 free taxes Original issue discount. 2012 free taxes Interest from a state, the District of Columbia, or the U. 2012 free taxes S. 2012 free taxes Government. 2012 free taxes The place or manner of payment is immaterial in determining the source of the income. 2012 free taxes A substitute interest payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as the interest on the transferred security. 2012 free taxes Exceptions. 2012 free taxes   U. 2012 free taxes S. 2012 free taxes source interest income does not include the following items. 2012 free taxes Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 80% of the payer's total gross income: Is from sources outside the United States, and Is attributable to the active conduct of a trade or business by the individual or corporation in a foreign country or a U. 2012 free taxes S. 2012 free taxes possession. 2012 free taxes However, the interest will be considered U. 2012 free taxes S. 2012 free taxes source interest income if either of the following apply. 2012 free taxes The recipient of the interest is related to the resident alien or domestic corporation. 2012 free taxes See section 954(d)(3) for the definition of related person. 2012 free taxes The terms of the obligation are significantly modified after August 9, 2010. 2012 free taxes Any extension of the term of the obligation is considered a significant modification. 2012 free taxes Interest paid by a foreign branch of a domestic corporation or a domestic partnership on deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law if the interest paid or credited can be deducted by the association. 2012 free taxes Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business. 2012 free taxes Dividends In most cases, dividend income received from domestic corporations is U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes Dividend income from foreign corporations is usually foreign source income. 2012 free taxes Exceptions to both of these rules are discussed below. 2012 free taxes A substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a distribution on the transferred security. 2012 free taxes Dividend equivalent payments. 2012 free taxes   U. 2012 free taxes S. 2012 free taxes source dividends also include all dividend equivalent payments. 2012 free taxes Dividend equivalent payments include substitute dividends, payments made pursuant to a specified notional principal contract, and all similar payments that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U. 2012 free taxes S. 2012 free taxes sources. 2012 free taxes    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. 2012 free taxes You can view this regulation at www. 2012 free taxes irs. 2012 free taxes gov/irb/2013-52_IRB/ar08. 2012 free taxes html. 2012 free taxes First exception. 2012 free taxes   Dividends received from a domestic corporation are not U. 2012 free taxes S. 2012 free taxes source income if the corporation elects to take the American Samoa economic development credit. 2012 free taxes Second exception. 2012 free taxes   Part of the dividends received from a foreign corporation is U. 2012 free taxes S. 2012 free taxes source income if 25% or more of its total gross income for the 3-year period ending with the close of its tax year preceding the declaration of dividends was effectively connected with a trade or business in the United States. 2012 free taxes If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. 2012 free taxes Determine the part that is U. 2012 free taxes S. 2012 free taxes source income by multiplying the dividend by the following fraction. 2012 free taxes   Foreign corporation's gross income connected with a U. 2012 free taxes S. 2012 free taxes trade or business for the 3-year period     Foreign corporation's gross income from all sources for that period   Guarantee of Indebtedness Certain amounts received directly or indirectly, for the provision of a guarantee of indebtedness issued after September 27, 2010, are U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes They must be paid by a noncorporate resident or U. 2012 free taxes S. 2012 free taxes corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. 2012 free taxes S. 2012 free taxes trade or business. 2012 free taxes For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). 2012 free taxes Personal Services All wages and any other compensation for services performed in the United States are considered to be from sources in the United States. 2012 free taxes The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. 2012 free taxes If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. 2012 free taxes Compensation (other than certain fringe benefits) is sourced on a time basis. 2012 free taxes Certain fringe benefits (such as housing and education) are sourced on a geographical basis. 2012 free taxes Or, you may be permitted to use an alternative basis to determine the source of compensation. 2012 free taxes See Alternative Basis , later. 2012 free taxes Multi-level marketing. 2012 free taxes   Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. 2012 free taxes Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. 2012 free taxes The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable. 2012 free taxes Self-employed individuals. 2012 free taxes   If you are self-employed, you determine the source of compensation for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. 2012 free taxes In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. 2012 free taxes Time Basis Use a time basis to figure your U. 2012 free taxes S. 2012 free taxes source compensation (other than the fringe benefits discussed later). 2012 free taxes Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed services in the United States during the year     Total number of days you performed services during the year   You can use a unit of time less than a day in the above fraction, if appropriate. 2012 free taxes The time period for which the compensation is made does not have to be a year. 2012 free taxes Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. 2012 free taxes Example 1. 2012 free taxes Christina Brooks, a resident of the Netherlands, worked 240 days for a U. 2012 free taxes S. 2012 free taxes company during the tax year. 2012 free taxes She received $80,000 in compensation. 2012 free taxes None of it was for fringe benefits. 2012 free taxes Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. 2012 free taxes Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes Example 2. 2012 free taxes Rob Waters, a resident of South Africa, is employed by a corporation. 2012 free taxes His annual salary is $100,000. 2012 free taxes None of it is for fringe benefits. 2012 free taxes During the first quarter of the year he worked entirely within the United States. 2012 free taxes On April 1, Rob was transferred to Singapore for the remainder of the year. 2012 free taxes Rob is able to establish that the first quarter of the year and the last 3 quarters of the year are two separate, distinct, and continuous periods of time. 2012 free taxes Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. 2012 free taxes 25 × $100,000). 2012 free taxes All of it is U. 2012 free taxes S. 2012 free taxes source income because he worked entirely within the United States during that quarter. 2012 free taxes The remaining $75,000 is attributable to the last three quarters of the year. 2012 free taxes During those quarters, he worked 150 days in Singapore and 30 days in the United States. 2012 free taxes His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. 2012 free taxes Of this $75,000, $12,500 ($75,000 × 30/180) is U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes Multi-year compensation. 2012 free taxes   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. 2012 free taxes Multi-year compensation is compensation that is included in your income in one tax year but that is attributable to a period that includes two or more tax years. 2012 free taxes   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. 2012 free taxes For example, an amount of compensation that specifically relates to a period of time that includes several calendar years is attributable to the entire multi-year period. 2012 free taxes   The amount of compensation treated as from U. 2012 free taxes S. 2012 free taxes sources is figured by multiplying the total multi-year compensation by a fraction. 2012 free taxes The numerator of the fraction is the number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in the United States in connection with the project. 2012 free taxes The denominator of the fraction is the total number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the project. 2012 free taxes Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. 2012 free taxes Housing. 2012 free taxes Education. 2012 free taxes Local transportation. 2012 free taxes Tax reimbursement. 2012 free taxes Hazardous or hardship duty pay as defined in Regulations section 1. 2012 free taxes 861-4(b)(2)(ii)(D)(5). 2012 free taxes Moving expense reimbursement. 2012 free taxes The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. 2012 free taxes Principal place of work. 2012 free taxes   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. 2012 free taxes Your principal place of work is usually the place where you spend most of your working time. 2012 free taxes This could be your office, plant, store, shop, or other location. 2012 free taxes If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. 2012 free taxes   If you have more than one job at any time, your main job location depends on the facts in each case. 2012 free taxes The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. 2012 free taxes Housing. 2012 free taxes   The source of a housing fringe benefit is determined based on the location of your principal place of work. 2012 free taxes A housing fringe benefit includes payments to you or on your behalf (and your family's if your family resides with you) only for the following. 2012 free taxes Rent. 2012 free taxes Utilities (except telephone charges). 2012 free taxes Real and personal property insurance. 2012 free taxes Occupancy taxes not deductible under section 164 or 216(a). 2012 free taxes Nonrefundable fees for securing a leasehold. 2012 free taxes Rental of furniture and accessories. 2012 free taxes Household repairs. 2012 free taxes Residential parking. 2012 free taxes Fair rental value of housing provided in kind by your employer. 2012 free taxes   A housing fringe benefit does not include: Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation), The cost of buying property, including principal payments on a mortgage, The cost of domestic labor (maids, gardeners, etc. 2012 free taxes ), Pay television subscriptions, Improvements and other expenses that increase the value or appreciably prolong the life of property, Purchased furniture or accessories, Depreciation or amortization of property or improvements, The value of meals or lodging that you exclude from gross income, or The value of meals or lodging that you deduct as moving expenses. 2012 free taxes Education. 2012 free taxes   The source of an education fringe benefit for the education expenses of your dependents is determined based on the location of your principal place of work. 2012 free taxes An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. 2012 free taxes Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. 2012 free taxes Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. 2012 free taxes Local transportation. 2012 free taxes   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. 2012 free taxes Your local transportation fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. 2012 free taxes The amount treated as a local transportation fringe benefit is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. 2012 free taxes Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. 2012 free taxes Tax reimbursement. 2012 free taxes   The source of a tax reimbursement fringe benefit is determined based on the location of the jurisdiction that imposed the tax for which you are reimbursed. 2012 free taxes Moving expense reimbursement. 2012 free taxes   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. 2012 free taxes However, the source is determined based on the location of your former principal place of work if you provide sufficient evidence that such determination of source is more appropriate under the facts and circumstances of your case. 2012 free taxes Sufficient evidence generally requires an agreement between you and your employer, or a written statement of company policy, which is reduced to writing before the move and which is entered into or established to induce you or other employees to move to another country. 2012 free taxes The written statement or agreement must state that your employer will reimburse you for moving expenses that you incur to return to your former principal place of work regardless of whether you continue to work for your employer after returning to that location. 2012 free taxes It may contain certain conditions upon which the right to reimbursement is determined as long as those conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of work. 2012 free taxes Alternative Basis If you are an employee, you can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your compensation than the time or geographical basis. 2012 free taxes If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your compensation. 2012 free taxes Also, if your total compensation from all sources is $250,000 or more, check “Yes” to both questions on line K on page 5 of Form 1040NR, and attach a written statement to your tax return that sets forth all of the following. 2012 free taxes Your name and social security number (written across the top of the statement). 2012 free taxes The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. 2012 free taxes For each item in (2), the alternative basis of allocation of source used. 2012 free taxes For each item in (2), a computation showing how the alternative allocation was computed. 2012 free taxes A comparison of the dollar amount of the U. 2012 free taxes S. 2012 free taxes compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. 2012 free taxes Transportation Income Transportation income is income from the use of a vessel or aircraft or for the performance of services directly related to the use of any vessel or aircraft. 2012 free taxes This is true whether the vessel or aircraft is owned, hired, or leased. 2012 free taxes The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. 2012 free taxes All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. 2012 free taxes If the transportation begins or ends in the United States, 50% of the transportation income is treated as derived from sources in the United States. 2012 free taxes For transportation income from personal services, 50% of the income is U. 2012 free taxes S. 2012 free taxes source income if the transportation is between the United States and a U. 2012 free taxes S. 2012 free taxes possession. 2012 free taxes For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. 2012 free taxes For information on how U. 2012 free taxes S. 2012 free taxes source transportation income is taxed, see chapter 4. 2012 free taxes Scholarships, Grants, Prizes, and Awards Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. 2012 free taxes However, see Activities to be performed outside the United States , later. 2012 free taxes For example, payments for research or study in the United States made by the United States, a noncorporate U. 2012 free taxes S. 2012 free taxes resident, or a domestic corporation, are from U. 2012 free taxes S. 2012 free taxes sources. 2012 free taxes Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. 2012 free taxes S. 2012 free taxes agent. 2012 free taxes Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. 2012 free taxes Activities to be performed outside the United States. 2012 free taxes   Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United States are not U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes    These rules do not apply to amounts paid as salary or other compensation for services. 2012 free taxes See Personal Services, earlier, for the source rules that apply. 2012 free taxes Pensions and Annuities If you receive a pension from a domestic trust for services performed both in and outside the United States, part of the pension payment is from U. 2012 free taxes S. 2012 free taxes sources. 2012 free taxes That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. 2012 free taxes This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). 2012 free taxes If you performed services as an employee of the United States, you may receive a distribution from the U. 2012 free taxes S. 2012 free taxes Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. 2012 free taxes Your U. 2012 free taxes S. 2012 free taxes source income is the otherwise taxable amount of the distribution that is attributable to your total U. 2012 free taxes S. 2012 free taxes Government basic pay other than tax-exempt pay for services performed outside the United States. 2012 free taxes Rents or Royalties Your U. 2012 free taxes S. 2012 free taxes source income includes rent and royalty income received during the tax year from property located in the United States or from any interest in that property. 2012 free taxes U. 2012 free taxes S. 2012 free taxes source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property. 2012 free taxes Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. 2012 free taxes Gross income from sources in the United States includes gains, profits, and income from the sale or other disposition of real property located in the United States. 2012 free taxes Natural resources. 2012 free taxes   The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a foreign country, or located in a foreign country and sold in the United States, is partly from sources in the United States. 2012 free taxes For information on determining that part, see section 1. 2012 free taxes 863-1(b) of the regulations. 2012 free taxes Table 2-1. 2012 free taxes Summary of Source Rules for Income of Nonresident Aliens Item of income Factor determining source Salaries, wages, other compensation Where services performed Business income:   Personal services Where services performed Sale of inventory—purchased Where sold Sale of inventory—produced Allocation Interest Residence of payer Dividends Whether a U. 2012 free taxes S. 2012 free taxes or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. 2012 free taxes Where property is used Sale of real property Location of property Sale of personal property Seller's tax home (but see Personal Property , later, for exceptions) Pension distributions attributable to contributions Where services were performed that earned the pension Investment earnings on pension contributions Location of pension trust Sale of natural resources Allocation based on fair market value of product at export terminal. 2012 free taxes For more information, see section 1. 2012 free taxes 863-1(b) of the regulations. 2012 free taxes *Exceptions include: a) Dividends paid by a U. 2012 free taxes S. 2012 free taxes corporation are foreign source if the corporation elects the  American Samoa economic development credit. 2012 free taxes  b) Part of a dividend paid by a foreign corporation is U. 2012 free taxes S. 2012 free taxes source if at least 25% of the  corporation's gross income is effectively connected with a U. 2012 free taxes S. 2012 free taxes trade or business for the  3 tax years before the year in which the dividends are declared. 2012 free taxes Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. 2012 free taxes Gain or loss from the sale or exchange of personal property generally has its source in the United States if you have a tax home in the United States. 2012 free taxes If you do not have a tax home in the United States, the gain or loss generally is considered to be from sources outside the United States. 2012 free taxes Tax home. 2012 free taxes   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. 2012 free taxes Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 2012 free taxes If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. 2012 free taxes If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 2012 free taxes Inventory property. 2012 free taxes   Inventory property is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. 2012 free taxes Income from the sale of inventory that you purchased is sourced where the property is sold. 2012 free taxes Generally, this is where title to the property passes to the buyer. 2012 free taxes For example, income from the sale of inventory in the United States is U. 2012 free taxes S. 2012 free taxes source income, whether you purchased it in the United States or in a foreign country. 2012 free taxes   Income from the sale of inventory property that you produced in the United States and sold outside the United States (or vice versa) is partly from sources in the United States and partly from sources outside the United States. 2012 free taxes For information on making this allocation, see section 1. 2012 free taxes 863-3 of the regulations. 2012 free taxes   These rules apply even if your tax home is not in the United States. 2012 free taxes Depreciable property. 2012 free taxes   To determine the source of any gain from the sale of depreciable personal property, you must first figure the part of the gain that is not more than the total depreciation adjustments on the property. 2012 free taxes You allocate this part of the gain to sources in the United States based on the ratio of U. 2012 free taxes S. 2012 free taxes depreciation adjustments to total depreciation adjustments. 2012 free taxes The rest of this part of the gain is considered to be from sources outside the United States. 2012 free taxes   For this purpose, “U. 2012 free taxes S. 2012 free taxes depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. 2012 free taxes S. 2012 free taxes sources. 2012 free taxes However, if the property is used predominantly in the United States during a tax year, all depreciation deductions allowable for that year are treated as U. 2012 free taxes S. 2012 free taxes depreciation adjustments. 2012 free taxes But there are some exceptions for certain transportation, communications, and other property used internationally. 2012 free taxes   Gain from the sale of depreciable property that is more than the total depreciation adjustments on the property is sourced as if the property were inventory property, as discussed above. 2012 free taxes   A loss is sourced in the same way as the depreciation deductions were sourced. 2012 free taxes However, if the property was used predominantly in the United States, the entire loss reduces U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. 2012 free taxes Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. 2012 free taxes The amount you can deduct depends on the property's cost, when you began using the property, how long it will take to recover your cost, and which depreciation method you use. 2012 free taxes A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. 2012 free taxes Intangible property. 2012 free taxes   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. 2012 free taxes The gain from the sale of amortizable or depreciable intangible property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the original deductions were sourced. 2012 free taxes This is the same as the source rule for gain from the sale of depreciable property. 2012 free taxes See Depreciable property , earlier, for details on how to apply this rule. 2012 free taxes   Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is used if the income from the sale is contingent on the productivity, use, or disposition of that property. 2012 free taxes If the income is not contingent on the productivity, use, or disposition of the property, the income is sourced according to your tax home as discussed earlier. 2012 free taxes If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. 2012 free taxes Sales through offices or fixed places of business. 2012 free taxes   Despite any of the earlier rules, if you do not have a tax home in the United States, but you maintain an office or other fixed place of business in the United States, treat the income from any sale of personal property (including inventory property) that is attributable to that office or place of business as U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes However, this rule does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your office or other fixed place of business outside the United States materially participated in the sale. 2012 free taxes   If you have a tax home in the United States but maintain an office or other fixed place of business outside the United States, income from sales of personal property, other than inventory, depreciable property, or intangibles, that is attributable to that foreign office or place of business may be treated as U. 2012 free taxes S. 2012 free taxes source income. 2012 free taxes The income is treated as U. 2012 free taxes S. 2012 free taxes source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. 2012 free taxes This rule also applies to losses if the foreign country would have imposed an income tax of less than 10% had the sale resulted in a gain. 2012 free taxes Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. 2012 free taxes S. 2012 free taxes state, or a U. 2012 free taxes S. 2012 free taxes possession, you generally must follow those laws to determine the income of yourself and your spouse for U. 2012 free taxes S. 2012 free taxes tax purposes. 2012 free taxes But you must disregard certain community property laws if: Both you and your spouse are nonresident aliens, or One of you is a nonresident alien and the other is a U. 2012 free taxes S. 2012 free taxes citizen or resident and you do not both choose to be treated as U. 2012 free taxes S. 2012 free taxes residents as explained in chapter 1. 2012 free taxes In these cases, you and your spouse must report community income as explained later. 2012 free taxes Earned income. 2012 free taxes   Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the spouse whose services produced the income. 2012 free taxes That spouse must report all of it on his or her separate return. 2012 free taxes Trade or business income. 2012 free taxes   Trade or business income, other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on the trade or business. 2012 free taxes That spouse must report all of it on his or her separate return. 2012 free taxes Partnership income (or loss). 2012 free taxes   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. 2012 free taxes The partner must report all of it on his or her separate return. 2012 free taxes Separate property income. 2012 free taxes   Income derived from the separate property of one spouse (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. 2012 free taxes That spouse must report all of it on his or her separate return. 2012 free taxes Use the appropriate community property law to determine what is separate property. 2012 free taxes Other community income. 2012 free taxes   All other community income is treated as provided by the applicable community property laws. 2012 free taxes Prev  Up  Next   Home   More Online Publications