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2012 Income Tax Filing

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2012 Income Tax Filing

2012 income tax filing Publication 515 - Main Content Table of Contents Withholding of TaxWithholding Agent Withholding and Reporting Obligations Persons Subject to NRA WithholdingIdentifying the Payee Foreign Persons DocumentationBeneficial Owners Foreign Intermediaries and Foreign Flow-Through Entities Standards of Knowledge Presumption Rules Income Subject to NRA WithholdingSource of Income Fixed or Determinable Annual or Periodical Income (FDAP) Withholding on Specific IncomeEffectively Connected Income Income Not Effectively Connected Pay for Personal Services Performed Artists and Athletes (Income Codes 42 and 43) Other Income Foreign Governments and Certain Other Foreign Organizations U. 2012 income tax filing S. 2012 income tax filing Taxpayer Identification NumbersUnexpected payment. 2012 income tax filing Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. 2012 income tax filing Electronic reporting. 2012 income tax filing Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. 2012 income tax filing S. 2012 income tax filing Real Property InterestForeign corporations. 2012 income tax filing Domestic corporations. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing real property holding corporations. 2012 income tax filing Partnerships. 2012 income tax filing Trusts and estates. 2012 income tax filing Domestically controlled QIE. 2012 income tax filing Late filing of certifications or notices. 2012 income tax filing Certifications. 2012 income tax filing Liability of agent or qualified substitute. 2012 income tax filing Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 2012 income tax filing Withholding of Tax In most cases, a foreign person is subject to U. 2012 income tax filing S. 2012 income tax filing tax on its U. 2012 income tax filing S. 2012 income tax filing source income. 2012 income tax filing Most types of U. 2012 income tax filing S. 2012 income tax filing source income received by a foreign person are subject to U. 2012 income tax filing S. 2012 income tax filing tax of 30%. 2012 income tax filing A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person's country of residence and the United States. 2012 income tax filing The tax is generally withheld (NRA withholding) from the payment made to the foreign person. 2012 income tax filing The term “NRA withholding” is used in this publication descriptively to refer to withholding required under sections 1441, 1442, and 1443 of the Internal Revenue Code. 2012 income tax filing In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. 2012 income tax filing S. 2012 income tax filing source income. 2012 income tax filing Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. 2012 income tax filing NRA withholding does not include withholding under section 1445 of the Code (see U. 2012 income tax filing S. 2012 income tax filing Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). 2012 income tax filing A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. 2012 income tax filing However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. 2012 income tax filing S. 2012 income tax filing person is not required to withhold. 2012 income tax filing In addition, a withholding agent may apply a reduced rate of withholding (including an exemption from withholding) if it can reliably associate the payment with documentation from a beneficial owner that is a foreign person entitled to a reduced rate of withholding. 2012 income tax filing Withholding Agent You are a withholding agent if you are a U. 2012 income tax filing S. 2012 income tax filing or foreign person that has control, receipt, custody, disposal, or payment of any item of income of a foreign person that is subject to withholding. 2012 income tax filing A withholding agent may be an individual, corporation, partnership, trust, association, nominee (under section 1446 of the Code), or any other entity, including any foreign intermediary, foreign partnership, or U. 2012 income tax filing S. 2012 income tax filing branch of certain foreign banks and insurance companies. 2012 income tax filing You may be a withholding agent even if there is no requirement to withhold from a payment or even if another person has withheld the required amount from the payment. 2012 income tax filing Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. 2012 income tax filing In most cases, the U. 2012 income tax filing S. 2012 income tax filing person who pays an amount subject to NRA withholding is the person responsible for withholding. 2012 income tax filing However, other persons may be required to withhold. 2012 income tax filing For example, a payment made by a flow-through entity or nonqualified intermediary that knows, or has reason to know, that the full amount of NRA withholding was not done by the person from which it receives a payment is required to do the appropriate withholding since it also falls within the definition of a withholding agent. 2012 income tax filing In addition, withholding must be done by any qualified intermediary, withholding foreign partnership, or withholding foreign trust in accordance with the terms of its withholding agreement, discussed later. 2012 income tax filing Liability for tax. 2012 income tax filing   As a withholding agent, you are personally liable for any tax required to be withheld. 2012 income tax filing This liability is independent of the tax liability of the foreign person to whom the payment is made. 2012 income tax filing If you fail to withhold and the foreign payee fails to satisfy its U. 2012 income tax filing S. 2012 income tax filing tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. 2012 income tax filing   The applicable tax will be collected only once. 2012 income tax filing If the foreign person satisfies its U. 2012 income tax filing S. 2012 income tax filing tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. 2012 income tax filing Determination of amount to withhold. 2012 income tax filing   You must withhold on the gross amount subject to NRA withholding. 2012 income tax filing You cannot reduce the gross amount by any deductions. 2012 income tax filing However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. 2012 income tax filing   If the determination of the source of the income or the amount subject to tax depends on facts that are not known at the time of payment, you must withhold an amount sufficient to ensure that at least 30% of the amount subsequently determined to be subject to withholding is withheld. 2012 income tax filing In no case, however, should you withhold more than 30% of the total amount paid. 2012 income tax filing Or, you may make a reasonable estimate of the amount from U. 2012 income tax filing S. 2012 income tax filing sources and put a corresponding part of the amount due in escrow until the amount from U. 2012 income tax filing S. 2012 income tax filing sources can be determined, at which time withholding becomes due. 2012 income tax filing When to withhold. 2012 income tax filing   Withholding is required at the time you make a payment of an amount subject to withholding. 2012 income tax filing A payment is made to a person if that person realizes income, whether or not there is an actual transfer of cash or other property. 2012 income tax filing A payment is considered made to a person if it is paid for that person's benefit. 2012 income tax filing For example, a payment made to a creditor of a person in satisfaction of that person's debt to the creditor is considered made to the person. 2012 income tax filing A payment also is considered made to a person if it is made to that person's agent. 2012 income tax filing   A U. 2012 income tax filing S. 2012 income tax filing partnership should withhold when any distributions that include amounts subject to withholding are made. 2012 income tax filing However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. 2012 income tax filing S. 2012 income tax filing partnership must withhold on the foreign partner's distributive share of the income on the earlier of the date that a Schedule K-1 (Form 1065) is provided or mailed to the partner or the due date for furnishing that schedule. 2012 income tax filing If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. 2012 income tax filing A U. 2012 income tax filing S. 2012 income tax filing trust is required to withhold on the amount includible in the gross income of a foreign beneficiary to the extent the trust's distributable net income consists of an amount subject to withholding. 2012 income tax filing To the extent a U. 2012 income tax filing S. 2012 income tax filing trust is required to distribute an amount subject to withholding but does not actually distribute the amount, it must withhold on the foreign beneficiary's allocable share at the time the income is required to be reported on Form 1042-S. 2012 income tax filing Withholding and Reporting Obligations You are required to report payments subject to NRA withholding on Form 1042-S and to file a tax return on Form 1042. 2012 income tax filing (See Returns Required , later. 2012 income tax filing ) An exception from reporting may apply to individuals who are not required to withhold from a payment and who do not make the payment in the course of their trade or business. 2012 income tax filing Form 1099 reporting and backup withholding. 2012 income tax filing    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. 2012 income tax filing S. 2012 income tax filing person. 2012 income tax filing You must withhold 28% (backup withholding rate) from a reportable payment made to a U. 2012 income tax filing S. 2012 income tax filing person that is subject to Form 1099 reporting if any of the following apply. 2012 income tax filing The U. 2012 income tax filing S. 2012 income tax filing person has not provided its taxpayer identification number (TIN) in the manner required. 2012 income tax filing The IRS notifies you that the TIN furnished by the payee is incorrect. 2012 income tax filing There has been a notified payee underreporting. 2012 income tax filing There has been a payee certification failure. 2012 income tax filing In most cases, a TIN must be provided by a U. 2012 income tax filing S. 2012 income tax filing non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. 2012 income tax filing A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. 2012 income tax filing You may be required to file Form 1099 and, if appropriate, backup withhold, even if you do not make the payments directly to that U. 2012 income tax filing S. 2012 income tax filing person. 2012 income tax filing For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. 2012 income tax filing S. 2012 income tax filing person subject to Form 1099 reporting. 2012 income tax filing See Identifying the Payee , later, for more information. 2012 income tax filing Also see Section S. 2012 income tax filing Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099 in the General Instructions for Certain Information Returns. 2012 income tax filing Foreign persons who provide Form W-8BEN, Form W-8ECI, or Form W-8EXP (or applicable documentary evidence) are exempt from backup withholding and Form 1099 reporting. 2012 income tax filing Wages paid to employees. 2012 income tax filing   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. 2012 income tax filing See Pay for Personal Services Performed , later. 2012 income tax filing Effectively connected income by partnerships. 2012 income tax filing   A withholding agent that is a partnership (whether U. 2012 income tax filing S. 2012 income tax filing or foreign) is also responsible for withholding on its income effectively connected with a U. 2012 income tax filing S. 2012 income tax filing trade or business that is allocable to foreign partners. 2012 income tax filing See Partnership Withholding on Effectively Connected Income , later, for more information. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing real property interest. 2012 income tax filing   A withholding agent also may be responsible for withholding if a foreign person transfers a U. 2012 income tax filing S. 2012 income tax filing real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. 2012 income tax filing S. 2012 income tax filing real property interest to a shareholder, partner, or beneficiary that is a foreign person. 2012 income tax filing See U. 2012 income tax filing S. 2012 income tax filing Real Property Interest , later. 2012 income tax filing Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. 2012 income tax filing It does not apply to payments made to U. 2012 income tax filing S. 2012 income tax filing persons. 2012 income tax filing Usually, you determine the payee's status as a U. 2012 income tax filing S. 2012 income tax filing or foreign person based on the documentation that person provides. 2012 income tax filing See Documentation , later. 2012 income tax filing However, if you have received no documentation or you cannot reliably associate all or a part of a payment with documentation, then you must apply certain presumption rules, discussed later. 2012 income tax filing Identifying the Payee In most cases, the payee is the person to whom you make the payment, regardless of whether that person is the beneficial owner of the income. 2012 income tax filing However, there are situations in which the payee is a person other than the one to whom you actually make a payment. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing agent of foreign person. 2012 income tax filing   If you make a payment to a U. 2012 income tax filing S. 2012 income tax filing person and you have actual knowledge that the U. 2012 income tax filing S. 2012 income tax filing person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. 2012 income tax filing However, if the U. 2012 income tax filing S. 2012 income tax filing person is a financial institution, you may treat the institution as the payee provided you have no reason to believe that the institution will not comply with its own obligation to withhold. 2012 income tax filing   If the payment is not subject to NRA withholding (for example, gross proceeds from the sales of securities), you must treat the payment as made to a U. 2012 income tax filing S. 2012 income tax filing person and not as a payment to a foreign person. 2012 income tax filing You may be required to report the payment on Form 1099 and, if applicable, backup withhold. 2012 income tax filing Disregarded entities. 2012 income tax filing   A business entity that is not a corporation and that has a single owner may be disregarded as an entity separate from its owner (a disregarded entity) for federal tax purposes. 2012 income tax filing The payee of a payment made to a disregarded entity is the owner of the entity. 2012 income tax filing   If the owner of the entity is a foreign person, you must apply NRA withholding unless you can treat the foreign owner as a beneficial owner entitled to a reduced rate of withholding. 2012 income tax filing   If the owner is a U. 2012 income tax filing S. 2012 income tax filing person, you do not apply NRA withholding. 2012 income tax filing However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. 2012 income tax filing You may assume that a foreign entity is not a disregarded entity unless you can reliably associate the payment with documentation provided by the owner or you have actual knowledge or reason to know that the foreign entity is a disregarded entity. 2012 income tax filing Flow-Through Entities The payees of payments (other than income effectively connected with a U. 2012 income tax filing S. 2012 income tax filing trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. 2012 income tax filing This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. 2012 income tax filing Income that is, or is deemed to be, effectively connected with the conduct of a U. 2012 income tax filing S. 2012 income tax filing trade or business of a flow-through entity is treated as paid to the entity. 2012 income tax filing All of the following are flow-through entities. 2012 income tax filing A foreign partnership (other than a withholding foreign partnership). 2012 income tax filing A foreign simple or foreign grantor trust (other than a withholding foreign trust). 2012 income tax filing A fiscally transparent entity receiving income for which treaty benefits are claimed. 2012 income tax filing See Fiscally transparent entity , later. 2012 income tax filing In most cases, you treat a payee as a flow-through entity if it provides you with a Form W-8IMY (see Documentation , later) on which it claims such status. 2012 income tax filing You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. 2012 income tax filing You must determine whether the owners or beneficiaries of a flow-through entity are U. 2012 income tax filing S. 2012 income tax filing or foreign persons, how much of the payment relates to each owner or beneficiary, and, if the owner or beneficiary is foreign, whether a reduced rate of NRA withholding applies. 2012 income tax filing You make these determinations based on the documentation and other information (contained in a withholding statement) that is associated with the flow-through entity's Form W-8IMY. 2012 income tax filing If you do not have all of the information that is required to reliably associate a payment with a specific payee, you must apply the presumption rules. 2012 income tax filing See Documentation and Presumption Rules , later. 2012 income tax filing Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. 2012 income tax filing Foreign partnerships. 2012 income tax filing    A foreign partnership is any partnership that is not organized under the laws of any state of the United States or the District of Columbia or any partnership that is treated as foreign under the income tax regulations. 2012 income tax filing If a foreign partnership is not a withholding foreign partnership, the payees of income are the partners of the partnership, provided the partners are not themselves a flow-through entity or a foreign intermediary. 2012 income tax filing However, the payee is the partnership itself if the partnership is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. 2012 income tax filing If a partner is a foreign flow-through entity or a foreign intermediary, you apply the payee determination rules to that partner to determine the payees. 2012 income tax filing Example 1. 2012 income tax filing A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. 2012 income tax filing S. 2012 income tax filing citizen. 2012 income tax filing You make a payment of U. 2012 income tax filing S. 2012 income tax filing source interest to the partnership. 2012 income tax filing It gives you a Form W-8IMY with which it associates Form W-8BEN from the nonresident alien; Form W-8BEN from the foreign corporation; and Form W-9 from the U. 2012 income tax filing S. 2012 income tax filing citizen. 2012 income tax filing The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. 2012 income tax filing You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. 2012 income tax filing Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. 2012 income tax filing Report the payment to the U. 2012 income tax filing S. 2012 income tax filing citizen on Form 1099-INT. 2012 income tax filing Example 2. 2012 income tax filing A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. 2012 income tax filing The second partnership has two partners, both nonresident alien individuals. 2012 income tax filing You make a payment of U. 2012 income tax filing S. 2012 income tax filing source interest to the first partnership. 2012 income tax filing It gives you a valid Form W-8IMY with which it associates a Form W-8BEN from the foreign corporation and a Form W-8IMY from the second partnership. 2012 income tax filing In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. 2012 income tax filing The Forms W-8IMY from the partnerships have complete withholding statements associated with them. 2012 income tax filing Because you can reliably associate a part of the interest payment with the Form W-8BEN provided by the foreign corporation and the Forms W-8BEN provided by the nonresident alien individual partners as a result of the withholding statements, you must treat them as the payees of the interest. 2012 income tax filing Example 3. 2012 income tax filing You make a payment of U. 2012 income tax filing S. 2012 income tax filing source dividends to a withholding foreign partnership. 2012 income tax filing The partnership has two partners, both foreign corporations. 2012 income tax filing You can reliably associate the payment with a valid Form W-8IMY from the partnership on which it represents that it is a withholding foreign partnership. 2012 income tax filing You must treat the partnership as the payee of the dividends. 2012 income tax filing Foreign simple and grantor trust. 2012 income tax filing   A trust is foreign unless it meets both of the following tests. 2012 income tax filing A court within the United States is able to exercise primary supervision over the administration of the trust. 2012 income tax filing One or more U. 2012 income tax filing S. 2012 income tax filing persons have the authority to control all substantial decisions of the trust. 2012 income tax filing   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. 2012 income tax filing A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. 2012 income tax filing   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. 2012 income tax filing The payees of a payment made to a foreign grantor trust are the owners of the trust. 2012 income tax filing However, the payee is the foreign simple or grantor trust itself if the trust is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. 2012 income tax filing If the beneficiaries or owners are themselves flow-through entities or foreign intermediaries, you apply the payee determination rules to that beneficiary or owner to determine the payees. 2012 income tax filing Example. 2012 income tax filing A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. 2012 income tax filing S. 2012 income tax filing citizen. 2012 income tax filing You make a payment of interest to the foreign trust. 2012 income tax filing It gives you a Form W-8IMY with which it associates Forms W-8BEN from the nonresident aliens and a Form W-9 from the U. 2012 income tax filing S. 2012 income tax filing citizen. 2012 income tax filing The trust also gives you a complete withholding statement that enables you to associate a part of the interest payment with the forms provided by each beneficiary. 2012 income tax filing You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. 2012 income tax filing Report the payment to the nonresident aliens on Forms 1042-S. 2012 income tax filing Report the payment to the U. 2012 income tax filing S. 2012 income tax filing citizen on Form 1099-INT. 2012 income tax filing Fiscally transparent entity. 2012 income tax filing   If a reduced rate of withholding under an income tax treaty is claimed, a flow-through entity includes any entity in which the interest holder must treat the entity as fiscally transparent. 2012 income tax filing The determination of whether an entity is fiscally transparent is made on an item of income basis (that is, the determination is made separately for interest, dividends, royalties, etc. 2012 income tax filing ). 2012 income tax filing The interest holder in an entity makes the determination by applying the laws of the jurisdiction where the interest holder is organized, incorporated, or otherwise considered a resident. 2012 income tax filing An entity is considered to be fiscally transparent for the income to the extent the laws of that jurisdiction require the interest holder to separately take into account on a current basis the interest holder's share of the income, whether or not distributed to the interest holder, and the character and source of the income to the interest holder are determined as if the income was realized directly from the source that paid it to the entity. 2012 income tax filing Subject to the standards of knowledge rules discussed later, you generally make the determination that an entity is fiscally transparent based on a Form W-8IMY provided by the entity. 2012 income tax filing   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. 2012 income tax filing Example. 2012 income tax filing Entity A is a business organization organized under the laws of country X that has an income tax treaty in force with the United States. 2012 income tax filing A has two interest holders, B and C. 2012 income tax filing B is a corporation organized under the laws of country Y. 2012 income tax filing C is a corporation organized under the laws of country Z. 2012 income tax filing Both countries Y and Z have an income tax treaty in force with the United States. 2012 income tax filing A receives royalty income from U. 2012 income tax filing S. 2012 income tax filing sources that is not effectively connected with the conduct of a trade or business in the United States. 2012 income tax filing For U. 2012 income tax filing S. 2012 income tax filing income tax purposes, A is treated as a partnership. 2012 income tax filing Country X treats A as a partnership and requires the interest holders in A to separately take into account on a current basis their respective shares of the income paid to A even if the income is not distributed. 2012 income tax filing The laws of country X provide that the character and source of the income to A's interest holders are determined as if the income was realized directly from the source that paid it to A. 2012 income tax filing Accordingly, A is fiscally transparent in its jurisdiction, country X. 2012 income tax filing B and C are not fiscally transparent under the laws of their respective countries of incorporation. 2012 income tax filing Country Y requires B to separately take into account on a current basis B's share of the income paid to A, and the character and source of the income to B is determined as if the income was realized directly from the source that paid it to A. 2012 income tax filing Accordingly, A is fiscally transparent for that income under the laws of country Y, and B is treated as deriving its share of the U. 2012 income tax filing S. 2012 income tax filing source royalty income for purposes of the U. 2012 income tax filing S. 2012 income tax filing -Y income tax treaty. 2012 income tax filing Country Z, on the other hand, treats A as a corporation and does not require C to take into account its share of A's income on a current basis whether or not distributed. 2012 income tax filing Therefore, A is not treated as fiscally transparent under the laws of country Z. 2012 income tax filing Accordingly, C is not treated as deriving its share of the U. 2012 income tax filing S. 2012 income tax filing source royalty income for purposes of the U. 2012 income tax filing S. 2012 income tax filing -Z income tax treaty. 2012 income tax filing Foreign Intermediaries In most cases, if you make payments to a foreign intermediary, the payees are the persons for whom the foreign intermediary collects the payment, such as account holders or customers, not the intermediary itself. 2012 income tax filing This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. 2012 income tax filing You may, however, treat a qualified intermediary that has assumed primary withholding responsibility for a payment as the payee, and you are not required to withhold. 2012 income tax filing An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. 2012 income tax filing A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. 2012 income tax filing In most cases, you determine whether an entity is a qualified intermediary or a nonqualified intermediary based on the representations the intermediary makes on Form W-8IMY. 2012 income tax filing You must determine whether the customers or account holders of a foreign intermediary are U. 2012 income tax filing S. 2012 income tax filing or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. 2012 income tax filing You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. 2012 income tax filing If you do not have all of the information or documentation that is required to reliably associate a payment with a payee, you must apply the presumption rules. 2012 income tax filing See Documentation and Presumption Rules , later. 2012 income tax filing Nonqualified intermediary. 2012 income tax filing   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. 2012 income tax filing The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. 2012 income tax filing Example. 2012 income tax filing You make a payment of interest to a foreign bank that is a nonqualified intermediary. 2012 income tax filing The bank gives you a Form W-8IMY and the Forms W-8BEN of two foreign persons, and a Form W-9 from a U. 2012 income tax filing S. 2012 income tax filing person for whom the bank is collecting the payments. 2012 income tax filing The bank also associates with its Form W-8IMY a withholding statement on which it allocates the interest payment to each account holder and provides all other information required to be on the withholding statement. 2012 income tax filing The account holders are the payees of the interest payment. 2012 income tax filing You should report the part of the interest paid to the two foreign persons on Forms 1042-S and the part paid to the U. 2012 income tax filing S. 2012 income tax filing person on Form 1099-INT. 2012 income tax filing Qualified intermediary. 2012 income tax filing   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. 2012 income tax filing S. 2012 income tax filing intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. 2012 income tax filing You may treat a QI as a payee to the extent the QI assumes primary withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for a payment. 2012 income tax filing In this situation, the QI is required to withhold the tax. 2012 income tax filing You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. 2012 income tax filing   A payment to a QI to the extent it does not assume primary NRA withholding responsibility is considered made to the person on whose behalf the QI acts. 2012 income tax filing If a QI does not assume Form 1099 reporting and backup withholding responsibility, you must report on Form 1099 and, if applicable, backup withhold as if you were making the payment directly to the U. 2012 income tax filing S. 2012 income tax filing person. 2012 income tax filing Branches of financial institutions. 2012 income tax filing   Branches of financial institutions are not permitted to operate as QIs if they are located outside of countries having approved “know-your-customer” (KYC) rules. 2012 income tax filing The countries with approved KYC rules are listed on IRS. 2012 income tax filing gov. 2012 income tax filing QI withholding agreement. 2012 income tax filing   Foreign financial institutions and foreign branches of U. 2012 income tax filing S. 2012 income tax filing financial institutions can enter into an agreement with the IRS to be a qualified intermediary. 2012 income tax filing   A QI is entitled to certain simplified withholding and reporting rules. 2012 income tax filing In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. 2012 income tax filing   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. 2012 income tax filing These forms, and the procedures required to obtain a QI withholding agreement are available at www. 2012 income tax filing irs. 2012 income tax filing gov/Businesses/Corporations/Qualified-Intermediaries-(QI). 2012 income tax filing Documentation. 2012 income tax filing   A QI is not required to forward documentation obtained from foreign account holders to the U. 2012 income tax filing S. 2012 income tax filing withholding agent from whom the QI receives a payment of U. 2012 income tax filing S. 2012 income tax filing source income. 2012 income tax filing The QI maintains such documentation at its location and provides the U. 2012 income tax filing S. 2012 income tax filing withholding agent with withholding rate pools. 2012 income tax filing A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. 2012 income tax filing   A QI is required to provide the U. 2012 income tax filing S. 2012 income tax filing withholding agent with information regarding U. 2012 income tax filing S. 2012 income tax filing persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. 2012 income tax filing   If a QI obtains documentary evidence under the “know-your-customer” rules that apply to the QI under local law, and the documentary evidence is of a type specified in an attachment to the QI agreement, the documentary evidence remains valid until there is a change in circumstances or the QI knows the information is incorrect. 2012 income tax filing This indefinite validity period rule does not apply to Forms W-8 or to documentary evidence that is not of the type specified in the attachment to the agreement. 2012 income tax filing Form 1042-S reporting. 2012 income tax filing   A QI is permitted to report payments made to its direct foreign account holders on a pooled basis rather than reporting payments to each direct account holder specifically. 2012 income tax filing Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). 2012 income tax filing Collective refund procedures. 2012 income tax filing   A QI may seek a refund on behalf of its direct account holders. 2012 income tax filing The direct account holders, therefore, are not required to file returns with the IRS to obtain refunds, but rather may obtain them from the QI. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing branches of foreign banks and foreign insurance companies. 2012 income tax filing   Special rules apply to a U. 2012 income tax filing S. 2012 income tax filing branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. 2012 income tax filing If you agree to treat the branch as a U. 2012 income tax filing S. 2012 income tax filing person, you may treat the branch as a U. 2012 income tax filing S. 2012 income tax filing payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. 2012 income tax filing S. 2012 income tax filing branch on which the agreement is evidenced. 2012 income tax filing If you treat the branch as a U. 2012 income tax filing S. 2012 income tax filing payee, you are not required to withhold. 2012 income tax filing Even though you agree to treat the branch as a U. 2012 income tax filing S. 2012 income tax filing person, you must report the payment on Form 1042-S. 2012 income tax filing   A financial institution organized in a U. 2012 income tax filing S. 2012 income tax filing possession is treated as a U. 2012 income tax filing S. 2012 income tax filing branch. 2012 income tax filing The special rules discussed in this section apply to a possessions financial institution. 2012 income tax filing   If you are paying a U. 2012 income tax filing S. 2012 income tax filing branch an amount that is not subject to NRA withholding, treat the payment as made to a foreign person, irrespective of any agreement to treat the branch as a U. 2012 income tax filing S. 2012 income tax filing person for amounts subject to NRA withholding. 2012 income tax filing Consequently, amounts not subject to NRA withholding that are paid to a U. 2012 income tax filing S. 2012 income tax filing branch are not subject to Form 1099 reporting or backup withholding. 2012 income tax filing   Alternatively, a U. 2012 income tax filing S. 2012 income tax filing branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. 2012 income tax filing In this situation, the payees are the persons on whose behalf the branch acts provided you can reliably associate the payment with valid documentation from those persons. 2012 income tax filing See Nonqualified Intermediaries under  Documentation, later. 2012 income tax filing   If the U. 2012 income tax filing S. 2012 income tax filing branch does not provide you with a Form W-8IMY, then you should treat a payment subject to NRA withholding as made to the foreign person of which the branch is a part and the income as effectively connected with the conduct of a trade or business in the United States. 2012 income tax filing Withholding foreign partnership and foreign trust. 2012 income tax filing   A withholding foreign partnership (WP) is any foreign partnership that has entered into a WP withholding agreement with the IRS and is acting in that capacity. 2012 income tax filing A withholding foreign trust (WT) is a foreign simple or grantor trust that has entered into a WT withholding agreement with the IRS and is acting in that capacity. 2012 income tax filing   A WP or WT may act in that capacity only for payments of amounts subject to NRA withholding that are distributed to, or included in the distributive share of, its direct partners, beneficiaries, or owners. 2012 income tax filing A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. 2012 income tax filing You may treat a WP or WT as a payee if it has provided you with documentation (discussed later) that represents that it is acting as a WP or WT for such amounts. 2012 income tax filing WP and WT withholding agreements. 2012 income tax filing   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. 2012 income tax filing Also see the following items. 2012 income tax filing Revenue Procedure 2004-21. 2012 income tax filing Revenue Procedure 2005-77. 2012 income tax filing Employer identification number (EIN). 2012 income tax filing   A completed Form SS-4 must be submitted with the application for being a WP or WT. 2012 income tax filing The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. 2012 income tax filing Documentation. 2012 income tax filing   A WP or WT must provide you with a Form W-8IMY that certifies that the WP or WT is acting in that capacity and a written statement identifying the amounts for which it is so acting. 2012 income tax filing The statement is not required to contain withholding rate pool information or any information relating to the identity of a direct partner, beneficiary, or owner. 2012 income tax filing The Form W-8IMY must contain the WP-EIN or WT-EIN. 2012 income tax filing Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. 2012 income tax filing A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U. 2012 income tax filing S. 2012 income tax filing person. 2012 income tax filing It also includes a foreign branch of a U. 2012 income tax filing S. 2012 income tax filing financial institution if the foreign branch is a qualified intermediary. 2012 income tax filing In most cases, the U. 2012 income tax filing S. 2012 income tax filing branch of a foreign corporation or partnership is treated as a foreign person. 2012 income tax filing Nonresident alien. 2012 income tax filing   A nonresident alien is an individual who is not a U. 2012 income tax filing S. 2012 income tax filing citizen or a resident alien. 2012 income tax filing A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. 2012 income tax filing Married to U. 2012 income tax filing S. 2012 income tax filing citizen or resident alien. 2012 income tax filing   Nonresident alien individuals married to U. 2012 income tax filing S. 2012 income tax filing citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. 2012 income tax filing However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. 2012 income tax filing Wages paid to these individuals are subject to graduated withholding. 2012 income tax filing See Wages Paid to Employees—Graduated Withholding . 2012 income tax filing Resident alien. 2012 income tax filing   A resident alien is an individual who is not a citizen or national of the United States and who meets either the green card test or the substantial presence test for the calendar year. 2012 income tax filing Green card test. 2012 income tax filing An alien is a resident alien if the individual was a lawful permanent resident of the United States at any time during the calendar year. 2012 income tax filing This is known as the green card test because these aliens hold immigrant visas (also known as green cards). 2012 income tax filing Substantial presence test. 2012 income tax filing An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. 2012 income tax filing Under this test, the individual must be physically present in the United States on at least: 31 days during the current calendar year, and 183 days during the current year and the 2 preceding years, counting all the days of physical presence in the current year, but only 1/3 the number of days of presence in the first preceding year, and only 1/6 the number of days in the second preceding year. 2012 income tax filing   In most cases, the days the alien is in the United States as a teacher, student, or trainee on an “F,” “J,” “M,” or “Q” visa are not counted. 2012 income tax filing This exception is for a limited period of time. 2012 income tax filing   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. 2012 income tax filing Note. 2012 income tax filing   If your employee is late in notifying you that his or her status changed from nonresident alien to resident alien, you may have to make an adjustment to Form 941 if that employee was exempt from withholding of social security and Medicare taxes as a nonresident alien. 2012 income tax filing For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). 2012 income tax filing Resident of a U. 2012 income tax filing S. 2012 income tax filing possession. 2012 income tax filing   A bona fide resident of Puerto Rico, the U. 2012 income tax filing S. 2012 income tax filing Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. 2012 income tax filing S. 2012 income tax filing citizen or a U. 2012 income tax filing S. 2012 income tax filing national is treated as a nonresident alien for the withholding rules explained here. 2012 income tax filing A bona fide resident of a possession is someone who: Meets the presence test, Does not have a tax home outside the possession, and Does not have a closer connection to the United States or to a foreign country than to the possession. 2012 income tax filing   For more information, see Publication 570, Tax Guide for Individuals With Income From U. 2012 income tax filing S. 2012 income tax filing Possessions. 2012 income tax filing Foreign corporations. 2012 income tax filing   A foreign corporation is one that does not fit the definition of a domestic corporation. 2012 income tax filing A domestic corporation is one that was created or organized in the United States or under the laws of the United States, any of its states, or the District of Columbia. 2012 income tax filing Guam or Northern Mariana Islands corporations. 2012 income tax filing   A corporation created or organized in, or under the laws of, Guam or the CNMI is not considered a foreign corporation for the purpose of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons; and At least 20% of the corporation's gross income is derived from sources within Guam or the CNMI for the 3-year period ending with the close of the preceding tax year of the corporation (or the period the corporation has been in existence, if less). 2012 income tax filing Note. 2012 income tax filing   The provisions discussed below under U. 2012 income tax filing S. 2012 income tax filing Virgin Islands and American Samoa corporations will apply to Guam or CNMI corporations when an implementing agreement is in effect between the United States and that possession. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing Virgin Islands and American Samoa corporations. 2012 income tax filing   A corporation created or organized in, or under the laws of, the U. 2012 income tax filing S. 2012 income tax filing Virgin Islands or American Samoa is not considered a foreign corporation for the purposes of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons, At least 65% of the corporation's gross income is effectively connected with the conduct of a trade or business in the U. 2012 income tax filing S. 2012 income tax filing Virgin Islands, American Samoa, Guam, the CNMI, or the United States for the 3-year period ending with the close of the tax year of the corporation (or the period the corporation or any predecessor has been in existence, if less), and No substantial part of the income of the corporation is used, directly or indirectly, to satisfy obligations to a person who is not a bona fide resident of the U. 2012 income tax filing S. 2012 income tax filing Virgin Islands, American Samoa, Guam, the CNMI, or the United States. 2012 income tax filing Foreign private foundations. 2012 income tax filing   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. 2012 income tax filing Gross investment income from sources within the United States paid to a qualified foreign private foundation is subject to NRA withholding at a 4% rate (unless exempted by a treaty) rather than the ordinary statutory 30% rate. 2012 income tax filing Other foreign organizations, associations, and charitable institutions. 2012 income tax filing   An organization may be exempt from income tax under section 501(a) of the Internal Revenue Code even if it was formed under foreign law. 2012 income tax filing In most cases, you do not have to withhold tax on payments of income to these foreign tax-exempt organizations unless the IRS has determined that they are foreign private foundations. 2012 income tax filing   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. 2012 income tax filing   You must withhold tax on the unrelated business income (as described in Publication 598, Tax on Unrelated Business Income of Exempt Organizations) of foreign tax-exempt organizations in the same way that you would withhold tax on similar income of nonexempt organizations. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing branches of foreign persons. 2012 income tax filing   In most cases, a payment to a U. 2012 income tax filing S. 2012 income tax filing branch of a foreign person is a payment made to the foreign person. 2012 income tax filing However, you may treat payments to U. 2012 income tax filing S. 2012 income tax filing branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. 2012 income tax filing S. 2012 income tax filing regulatory supervision as payments made to a U. 2012 income tax filing S. 2012 income tax filing person, if you and the U. 2012 income tax filing S. 2012 income tax filing branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. 2012 income tax filing For this purpose, a financial institution organized under the laws of a U. 2012 income tax filing S. 2012 income tax filing possession is treated as a U. 2012 income tax filing S. 2012 income tax filing branch. 2012 income tax filing Documentation In most cases, you must withhold 30% from the gross amount paid to a foreign payee unless you can reliably associate the payment with valid documentation that establishes either of the following. 2012 income tax filing The payee is a U. 2012 income tax filing S. 2012 income tax filing person. 2012 income tax filing The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. 2012 income tax filing In most cases, you must get the documentation before you make the payment. 2012 income tax filing The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. 2012 income tax filing See Standards of Knowledge , later. 2012 income tax filing If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. 2012 income tax filing For example, if you do not have documentation or you cannot determine the part of a payment that is allocable to specific documentation, you must use the presumption rules. 2012 income tax filing The specific types of documentation are discussed in this section. 2012 income tax filing However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. 2012 income tax filing As the withholding agent, you also may want to see the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY. 2012 income tax filing Section 1446 withholding. 2012 income tax filing   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. 2012 income tax filing In most cases, a partnership determines if a partner is a foreign partner and the partner's tax classification based on the withholding certificate provided by the partner. 2012 income tax filing This is the same documentation that is filed for NRA withholding, but may require additional information as discussed under each of the forms in this section. 2012 income tax filing Joint owners. 2012 income tax filing    If you make a payment to joint owners, you need to get documentation from each owner. 2012 income tax filing Form W-9. 2012 income tax filing   In most cases, you can treat the payee as a U. 2012 income tax filing S. 2012 income tax filing person if the payee gives you a Form W-9. 2012 income tax filing The Form W-9 can be used only by a U. 2012 income tax filing S. 2012 income tax filing person and must contain the payee's taxpayer identification number (TIN). 2012 income tax filing If there is more than one owner, you may treat the total amount as paid to a U. 2012 income tax filing S. 2012 income tax filing person if any one of the owners gives you a Form W-9. 2012 income tax filing See U. 2012 income tax filing S. 2012 income tax filing Taxpayer Identification Numbers , later. 2012 income tax filing U. 2012 income tax filing S. 2012 income tax filing persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. 2012 income tax filing Form W-8. 2012 income tax filing   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. 2012 income tax filing Until further notice, you can rely upon Forms W-8 that contain a P. 2012 income tax filing O. 2012 income tax filing box as a permanent residence address provided you do not know, or have reason to know, that the person providing the form is a U. 2012 income tax filing S. 2012 income tax filing person and that a street address is available. 2012 income tax filing You may rely on Forms W-8 for which there is a U. 2012 income tax filing S. 2012 income tax filing mailing address provided you received the form prior to December 31, 2001. 2012 income tax filing   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. 2012 income tax filing You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. 2012 income tax filing S. 2012 income tax filing possession. 2012 income tax filing Other documentation. 2012 income tax filing   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. 2012 income tax filing The nonresident alien individual may have to give you a Form W-4 or a Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. 2012 income tax filing These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. 2012 income tax filing Beneficial Owners If all the appropriate requirements have been established on a Form W-8BEN, W-8ECI, W-8EXP or, if applicable, on documentary evidence, you may treat the payee as a foreign beneficial owner. 2012 income tax filing Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. 2012 income tax filing   This form is used by a foreign person to: Establish foreign status; Claim that such person is the beneficial owner of the income for which the form is being furnished or a partner in a partnership subject to section 1446 withholding; and If applicable, claim a reduced rate of, or exemption from, withholding under an income tax treaty. 2012 income tax filing   Form W-8BEN also may be used to claim that the foreign person is exempt from Form 1099 reporting and backup withholding for income that is not subject to NRA withholding. 2012 income tax filing For example, a foreign person may provide a Form W-8BEN to a broker to establish that the gross proceeds from the sale of securities are not subject to Form 1099 reporting or backup withholding. 2012 income tax filing Claiming treaty benefits. 2012 income tax filing   You may apply a reduced rate of withholding to a foreign person that provides a Form W-8BEN claiming a reduced rate of withholding under an income tax treaty only if the person provides a U. 2012 income tax filing S. 2012 income tax filing TIN and certifies that: It is a resident of a treaty country; It is the beneficial owner of the income; If it is an entity, it derives the income within the meaning of section 894 of the Internal Revenue Code (it is not fiscally transparent); and It meets any limitation on benefits provision contained in the treaty, if applicable. 2012 income tax filing   If the foreign beneficial owner claiming a treaty benefit is related to you, the foreign beneficial owner also must certify on Form W-8BEN that it will file Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), if the amount subject to NRA withholding received during a calendar year exceeds, in the aggregate, $500,000. 2012 income tax filing   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. 2012 income tax filing See Fiscally transparent entity discussed earlier under Flow-Through Entities. 2012 income tax filing   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. 2012 income tax filing For example, a foreign corporation may not be entitled to a reduced rate of withholding unless a minimum percentage of its owners are citizens or residents of the United States or the treaty country. 2012 income tax filing   The exemptions from, or reduced rates of, U. 2012 income tax filing S. 2012 income tax filing tax vary under each treaty. 2012 income tax filing You must check the provisions of the tax treaty that apply. 2012 income tax filing Tables at the end of this publication show the countries with which the United States has income tax treaties and the rates of withholding that apply in cases where all conditions of the particular treaty articles are satisfied. 2012 income tax filing   If you know, or have reason to know, that an owner of income is not eligible for treaty benefits claimed, you must not apply the treaty rate. 2012 income tax filing You are not, however, responsible for misstatements on a Form W-8, documentary evidence, or statements accompanying documentary evidence for which you did not have actual knowledge, or reason to know, that the statements were incorrect. 2012 income tax filing Exceptions to TIN requirement. 2012 income tax filing   A foreign person does not have to provide a TIN to claim a reduced rate of withholding under a treaty if the requirements for the following exceptions are met. 2012 income tax filing Income from marketable securities (discussed next). 2012 income tax filing Unexpected payments to an individual (discussed under U. 2012 income tax filing S. 2012 income tax filing Taxpayer Identification Numbers ). 2012 income tax filing Marketable securities. 2012 income tax filing   A Form W-8BEN provided to claim treaty benefits does not need a U. 2012 income tax filing S. 2012 income tax filing TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. 2012 income tax filing For this purpose, income from a marketable security consists of the following items. 2012 income tax filing Dividends and interest from stocks and debt obligations that are actively traded. 2012 income tax filing Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). 2012 income tax filing Dividends, interest, or royalties from units of beneficial interest in a unit investment trust that are (or were upon issuance) publicly offered and are registered with the SEC under the Securities Act of 1933. 2012 income tax filing Income related to loans of any of the above securities. 2012 income tax filing Offshore accounts. 2012 income tax filing   If a payment is made outside the United States to an offshore account, a payee may give you documentary evidence, rather than Form W-8BEN. 2012 income tax filing   In most cases, a payment is made outside the United States if you complete the acts necessary to effect the payment outside the United States. 2012 income tax filing However, an amount paid by a bank or other financial institution on a deposit or account usually will be treated as paid at the branch or office where the amount is credited. 2012 income tax filing An offshore account is an account maintained at an office or branch of a U. 2012 income tax filing S. 2012 income tax filing or foreign bank or other financial institution at any location outside the United States. 2012 income tax filing   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. 2012 income tax filing This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. 2012 income tax filing In most cases, the nonqualified intermediary or flow-through entity that gives you documentary evidence also will have to give you a withholding statement, discussed later. 2012 income tax filing Documentary evidence. 2012 income tax filing   You may apply a reduced rate of withholding to income from marketable securities (discussed earlier) paid outside the United States to an offshore account if the beneficial owner gives you documentary evidence in place of a Form W-8BEN. 2012 income tax filing To claim treaty benefits, the documentary evidence must be one of the following: A certificate of residence that: Is issued by a tax official of the treaty country of which the foreign beneficial owner claims to be a resident, States that the person has filed its most recent income tax return as a resident of that country, and Is issued within 3 years prior to being presented to you. 2012 income tax filing Documentation for an individual that: Includes the individual's name, address, and photograph, Is an official document issued by an authorized governmental body, and Is issued no more than 3 years prior to being presented to you. 2012 income tax filing Documentation for an entity that: Includes the name of the entity, Includes the address of its principal office in the treaty country, and Is an official document issued by an authorized governmental body. 2012 income tax filing In addition to the documentary evidence, a foreign beneficial owner that is an entity must provide a statement that it derives the income for which it claims treaty benefits and that it meets one or more of the conditions set forth in a limitation on benefits article, if any, (or similar provision) contained in the applicable treaty. 2012 income tax filing Form W-8ECI, Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. 2012 income tax filing   This form is used by a foreign person to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim that the income is effectively connected with the conduct of a trade or business in the United States. 2012 income tax filing (See Effectively Connected Income , later. 2012 income tax filing )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. 2012 income tax filing   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. 2012 income tax filing S. 2012 income tax filing trade or business is subject to withholding under section 1446. 2012 income tax filing If the partner has made, or will make, an election under section 871(d) or 882(d), the partner must submit Form W-8ECI, and attach a copy of the election, or a statement of intent to elect, to the form. 2012 income tax filing    If the partner's only effectively connected income is the income allocated from the partnership and the partner is not making the election under section 871(d) or 882(d), the partner should provide Form W-8BEN to the partnership. 2012 income tax filing Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. 2012 income tax filing   This form is used by a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U. 2012 income tax filing S. 2012 income tax filing possession to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim a reduced rate of, or an exemption from, withholding as such an entity. 2012 income tax filing   If the government or organization is a partner in a partnership carrying on a trade or business in the United States, the effectively connected income allocable to the partner is subject to withholding under section 1446. 2012 income tax filing   See Foreign Governments and Certain Other Foreign Organizations , later. 2012 income tax filing Foreign Intermediaries and Foreign Flow-Through Entities Payments made to a foreign intermediary or foreign flow-through entity are treated as made to the payees on whose behalf the intermediary or entity acts. 2012 income tax filing The Form W-8IMY provided by a foreign intermediary or flow-through entity must be accompanied by additional information for you to be able to reliably associate the payment with a payee. 2012 income tax filing The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. 2012 income tax filing Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. 2012 income tax filing S. 2012 income tax filing Branches for United States Tax Withholding. 2012 income tax filing   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. 2012 income tax filing S. 2012 income tax filing branches, to: Represent that a foreign person is a qualified intermediary or nonqualified intermediary, Represent, if applicable, that the qualified intermediary is assuming primary NRA withholding responsibility and/or primary Form 1099 reporting and backup withholding responsibility, Represent that a foreign partnership or a foreign simple or grantor trust is a withholding foreign partnership or a withholding foreign trust, Represent that a foreign flow-through entity is a nonwithholding foreign partnership, or a nonwithholding foreign trust and that the income is not effectively connected with the conduct of a trade or business in the United States, Represent that the provider is a U. 2012 income tax filing S. 2012 income tax filing branch of a foreign bank or insurance company and either is agreeing to be treated as a U. 2012 income tax filing S. 2012 income tax filing person or is transmitting documentation of the persons on whose behalf it is acting, or Represent that, for purposes of section 1446, it is an upper-tier foreign partnership or a foreign grantor trust and that the form is being used to transmit the required documentation. 2012 income tax filing For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. 2012 income tax filing 1446-5. 2012 income tax filing Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. 2012 income tax filing A foreign intermediary that has received a QI employer identification number (QI-EIN) may represent on Form W-8IMY that it is a QI before it receives a fully executed agreement. 2012 income tax filing The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. 2012 income tax filing The IRS will revoke a QI-EIN if the QI agreement is not executed and returned to the IRS within a reasonable period of time after the agreement was sent to the intermediary for signature. 2012 income tax filing Responsibilities. 2012 income tax filing   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. 2012 income tax filing However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. 2012 income tax filing Instead, it provides you with a withholding statement that contains withholding rate pool information. 2012 income tax filing A withholding rate pool is a payment of a single type of income, determined in accordance with the categories of income reported on Form 1042-S that is subject to a single rate of withholding. 2012 income tax filing A qualified intermediary is required to provide you with information regarding U. 2012 income tax filing S. 2012 income tax filing persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. 2012 income tax filing S. 2012 income tax filing person unless it has assumed Form 1099 reporting and backup withholding responsibility. 2012 income tax filing For the alternative procedure for providing rate pool information for U. 2012 income tax filing S. 2012 income tax filing non-exempt persons, see the Form W-8IMY instructions. 2012 income tax filing   The withholding statement must: Designate those accounts for which it acts as a qualified intermediary, Designate those accounts for which it assumes primary NRA withholding responsibility and/or primary Form 1099 and backup withholding responsibility, and Provide sufficient information for you to allocate the payment to a withholding rate pool. 2012 income tax filing   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. 2012 income tax filing Primary responsibility not assumed. 2012 income tax filing   If a QI does not assume primary NRA withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for the payment, you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to each withholding rate pool for foreign payees. 2012 income tax filing Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. 2012 income tax filing S. 2012 income tax filing person subject to Form 1099 reporting and/or backup withholding. 2012 income tax filing The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. 2012 income tax filing Primary NRA withholding responsibility assumed. 2012 income tax filing   If you make a payment to a QI that assumes primary NRA withholding responsibility (but not primary Form 1099 reporting and backup withholding responsibility), you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to the withholding rate pool for which the QI assumes primary NRA withholding responsibility and the part of the payment attributable to withholding rate pools for each U. 2012 income tax filing S. 2012 income tax filing person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. 2012 income tax filing The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. 2012 income tax filing Primary NRA and Form 1099 responsibility assumed. 2012 income tax filing   If you make a payment to a QI that assumes both primary NRA withholding responsibility and primary Form 1099 reporting and backup withholding responsibility, you can reliably associate a payment with valid documentation provided that you receive a valid Form W-8IMY. 2012 income tax filing It is not necessary to associate the payment with withholding rate pools. 2012 income tax filing Example. 2012 income tax filing You make a payment of dividends to a QI. 2012 income tax filing It has five customers: two are foreign persons who have provided documentation entitling them to a 15% rate of withholding on dividends; two are foreign persons subject to a 30% rate of withholding on dividends; and one is a U. 2012 income tax filing S. 2012 income tax filing individual who provides it with a Form W-9. 2012 income tax filing Each customer is entitled to 20% of the dividend payment. 2012 income tax filing The QI does not assume any primary withholding responsibility. 2012 income tax filing The QI gives you a Form W-8IMY with which it associates the Form W-9 and a withholding statement that allocates 40% of the dividend to a 15% withholding rate pool, 40% to a 30% withholding rate pool, and 20% to the U. 2012 income tax filing S. 2012 income tax filing individual. 2012 income tax filing You should report on Forms 1042-S 40% of the payment as made to a 15% rate dividend pool and 40% of the payment as made to a 30% rate dividend pool. 2012 income tax filing The part of the payment allocable to the U. 2012 income tax filing S. 2012 income tax filing individual (20%) is reportable on Form 1099-DIV. 2012 income tax filing Smaller partnerships and trusts. 2012 income tax filing   A QI may apply special rules to a smaller partnership or trust (Joint Account Provision) only if the partnership or trust meets the following conditions. 2012 income tax filing It is a foreign partnership or foreign simple or grantor trust. 2012 income tax filing It is a direct account holder of the QI. 2012 income tax filing It does not have any partner, beneficiary, or owner that is a U. 2012 income tax filing S. 2012 income tax filing person or a pass- through partner, beneficiary, or owner. 2012 income tax filing   For information on these rules, see section 4A. 2012 income tax filing 01 of the QI agreement. 2012 income tax filing This is found in Appendix 3 of Revenue Procedure 2003-64. 2012 income tax filing Also see Revenue Procedure 2004-21. 2012 income tax filing Related partnerships and trusts. 2012 income tax filing    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. 2012 income tax filing It is a foreign partnership or foreign simple or grantor trust. 2012 income tax filing It is either: A direct account holder of the QI, or An indirect account holder of the QI that is a direct partner, beneficiary, or owner of a partnership or trust to which the QI has applied this rule. 2012 income tax filing For information on these rules, see section 4A. 2012 income tax filing 02 of the QI agreement. 2012 income tax filing This is found in Appendix 3 of Revenue Procedure 2003-64. 2012 income tax filing Also see Revenue Procedure 2005-77. 2012 income tax filing Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. 2012 income tax filing S. 2012 income tax filing branch that is using Form W-8IMY to transmit information about the branch's account holders or customers, you can treat the payment (or a part of the payment) as reliably associated with valid documentation from a specific payee only if, prior to making the payment: You can allocate the payment to a valid Form W-8IMY, You can reliably determine how much of the payment relates to valid documentation provided by a payee (a person that is not itself a foreign intermediary, flow- through entity, or U. 2012 income tax filing S. 2012 income tax filing branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. 2012 income tax filing The NQI, flow-through entity, or U. 2012 income tax filing S. 2012 income tax filing branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. 2012 income tax filing A withholding statement must be updated to keep the information accurate prior to each payment. 2012 income tax filing Withholding statement. 2012 income tax filing   In most cases, a withholding statement must contain the following information. 2012 income tax filing The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. 2012 income tax filing The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. 2012 income tax filing The status of the person for whom the documentation has been provided, such as whether the person is a U. 2012 income tax filing S. 2012 income tax filing exempt recipient (U. 2012 income tax filing S. 2012 income tax filing person exempt from Form 1099 reporting), U. 2012 income tax filing S. 2012 income tax filing non-exempt recipient (U. 2012 income tax filing S. 2012 income tax filing person subject to Form 1099 reporting), or a foreign person. 2012 income tax filing For a foreign person, the statement must indicate whether the person is a beneficial owner or a foreign intermediary, flow-through entity, or a U. 2012 income tax filing S. 2012 income tax filing branch. 2012 income tax filing The type of recipient the person is, based on the recipient codes used on Form 1042-S. 2012 income tax filing Information allocating each payment, by income type, to each payee (including U. 2012 income tax filing S. 2012 income tax filing exempt and U. 2012 income tax filing S. 2012 income tax filing non-exempt recipients) for whom documentation has been provided. 2012 income tax filing The rate of withholding that applies to each foreign person to whom a payment is allocated. 2012 income tax filing A foreign payee's country of residence. 2012 income tax filing If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. 2012 income tax filing ). 2012 income tax filing In the case of treaty benefits claimed by entities, whether the applicable limitation on benefits statement and the statement that the foreign person derives the income for which treaty benefits are claimed, have been made. 2012 income tax filing The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. 2012 income tax filing S. 2012 income tax filing branch from which the payee will directly receive a payment. 2012 income tax filing Any other information a withholding agent requests to fulfill its reporting and withholding obligations. 2012 income tax filing Alternative procedure. 2012 income tax filing   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. 2012 income tax filing S. 2012 income tax filing exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. 2012 income tax filing To take advantage of this procedure, the NQI must: (a) inform you, on its withholding statement, that it is using the alternative procedure; and (b) obtain your consent. 2012 income tax filing You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. 2012 income tax filing    This alternative procedure cannot be used for payments to U. 2012 income tax filing S. 2012 income tax filing non-exempt recipients. 2012 income tax filing Therefore, an NQI must always provide you with allocation information for all U. 2012 income tax filing S. 2012 income tax filing non-exempt recipients prior to a payment being made. 2012 income tax filing Pooled withholding information. 2012 income tax filing   If an NQI uses the alternative procedure, it must provide you with withholding rate pool information, as opposed to individual allocation information, prior to the payment of a reportable amount. 2012 income tax filing A withholding rate pool is a payment of a single type of income (as determined by the income categories on Form 1042-S) that is subject to a single rate of withholding. 2012 income tax filing For example, an NQI that has foreign account holders receiving royalties and dividends, both subject to the 15% rate, will provide you with information for two withholding rate pools (one for royalties and one for dividends). 2012 income tax filing The NQI must provide you with the payee specific allocation information (information allocating each payment to each payee) by January 31 following the calendar year of payment. 2012 income tax filing Failure to provide allocation information. 2012 income tax filing   If an NQI fails to provide you with the payee specific allocation information for a withholding rate pool by January 31, you must not apply the alternative procedure to any of the NQI's withholding rate pools from that date forward. 2012 income tax filing You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . 2012 income tax filing An NQI is deemed to have f
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LT 39 (Letter 3228) Frequently Asked Questions (FAQs)

What is the notice telling me?

This is a reminder notice required by law informing you that you owe overdue tax.

What do I have to do?

If you are already working with us to resolve the balance, no action is required. You should contact us if you have unanswered questions about the overdue taxes or wrote or called us over 30 days ago and have not received a response. If you are able to pay the amount owed, send us full payment as outlined in the letter. If you are unable to full pay or believe that the overdue tax is incorrect, call us to resolve the account.

How much time do I have?

To avoid enforcement action, contact us within 10 days of the date on the letter.

What happens if I don't pay?

Enforced collection action may be taken to collect the amount you owe, including the filing of a Notice of Federal Tax Lien, or garnishment of your wages or other income sources, and/or bank accounts. A lien is a public notice to your creditors that the government has a right to your interests in your current assets and assets you acquire after we file the lien; it can affect your ability to obtain credit.

Who should I contact?

Contact us at the phone number shown on the letter.

What if I don't agree or have already taken corrective action?

If you do not agree with this notice, call us immediately at the number printed at the top of the notice. We will do our best to help you. If you called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

If you have already paid or arranged for an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 03-Feb-2014

The 2012 Income Tax Filing

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