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2012 Tax Software Free

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2012 Tax Software Free

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

2012 tax software free Publication 555 - Main Content Table of Contents Domicile Community or Separate Property and Income Identifying Income, Deductions, and CreditsIncome Exemptions Deductions Credits, Taxes, and Payments Community Property Laws DisregardedRequesting relief. 2012 tax software free Equitable relief. 2012 tax software free Earned income. 2012 tax software free Trade or business income. 2012 tax software free Partnership income or loss. 2012 tax software free Separate property income. 2012 tax software free Social security benefits. 2012 tax software free Other income. 2012 tax software free End of the Community Preparing a Federal Income Tax ReturnJoint Return Versus Separate Returns Separate Return Preparation How To Get Tax HelpLow Income Taxpayer Clinics Domicile Whether you have community property and community income depends on the state where you are domiciled. 2012 tax software free If you and your spouse (or your registered domestic partner) have different domiciles, check the laws of each to see whether you have community property or community income. 2012 tax software free You have only one domicile even if you have more than one home. 2012 tax software free Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. 2012 tax software free The question of your domicile is mainly a matter of your intention as indicated by your actions. 2012 tax software free You must be able to show that you intend a given place or state to be your permanent home. 2012 tax software free If you move into or out of a community property state during the year, you may or may not have community income. 2012 tax software free Factors considered in determining domicile include: Where you pay state income tax, Where you vote, Location of property you own, Your citizenship, Length of residence, and Business and social ties to the community. 2012 tax software free Amount of time spent. 2012 tax software free    The amount of time spent in one place does not always explain the difference between home and domicile. 2012 tax software free A temporary home or residence may continue for months or years while a domicile may be established the first moment you occupy the property. 2012 tax software free Your intent is the determining factor in proving where you have your domicile. 2012 tax software free    Note. 2012 tax software free When this publication refers to where you live, it means your domicile. 2012 tax software free Community or Separate Property and Income If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income. 2012 tax software free Likewise, a registered domestic partner must report half of all community income and all of his or her separate income on his or her federal tax return. 2012 tax software free You each must attach your Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. 2012 tax software free Generally, the laws of the state in which you are domiciled govern whether you have community property and community income or separate property and separate income for federal tax purposes. 2012 tax software free The following is a summary of the general rules. 2012 tax software free These rules are also shown in Table 1. 2012 tax software free Community property. 2012 tax software free    Generally, community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. 2012 tax software free That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. 2012 tax software free That cannot be identified as separate property. 2012 tax software free Community income. 2012 tax software free    Generally, community income is income from: Community property. 2012 tax software free Salaries, wages, and other pay received for the services performed by you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. 2012 tax software free Real estate that is treated as community property under the laws of the state where the property is located. 2012 tax software free Note Separate property. 2012 tax software free    Generally, separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). 2012 tax software free Money earned while domiciled in a noncommunity property state. 2012 tax software free Property that you or your spouse (or your registered domestic partner) received separately as a gift or inheritance during your marriage (or registered domestic partnership). 2012 tax software free Property that you or your spouse (or your registered domestic partner) bought with separate funds, or acquired in exchange for separate property, during your marriage (or registered domestic partnership). 2012 tax software free Property that you and your spouse (or your registered domestic partner) converted from community property to separate property through an agreement valid under state law. 2012 tax software free The part of property bought with separate funds, if part was bought with community funds and part with separate funds. 2012 tax software free Separate income. 2012 tax software free    Generally, income from separate property is the separate income of the spouse (or the registered domestic partner) who owns the property. 2012 tax software free    In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. 2012 tax software free Table 1. 2012 tax software free General Rules — Property and Income: Community or Separate? Community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. 2012 tax software free (Includes the part of property bought with community property funds if part was bought with community funds and part with separate funds. 2012 tax software free ) That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. 2012 tax software free That cannot be identified as separate property. 2012 tax software free Separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). 2012 tax software free Money earned while domiciled in a noncommunity property state. 2012 tax software free Property either of you received as a gift or inherited separately during your marriage (or registered domestic partnership). 2012 tax software free Property bought with separate funds, or exchanged for separate property, during your marriage (or registered domestic partnership). 2012 tax software free Property that you and your spouse (or your registered domestic partner) agreed to convert from community to separate property through an agreement valid under state law. 2012 tax software free The part of property bought with separate funds, if part was bought with community funds and part with separate funds. 2012 tax software free Community income 1,2,3 is income from: Community property. 2012 tax software free Salaries, wages, or pay for services of you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. 2012 tax software free Real estate that is treated as community property under the laws of the state where the property is located. 2012 tax software free Separate income 1,2 is income from: Separate property which belongs to the spouse (or registered domestic partner) who owns the property. 2012 tax software free 1In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. 2012 tax software free 2Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year , later. 2012 tax software free In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. 2012 tax software free In other states, it is separate income. 2012 tax software free 3Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. 2012 tax software free See Community Property Laws Disregarded , later. 2012 tax software free Identifying Income, Deductions, and Credits If you file separate returns, you and your spouse (or your registered domestic partner) each must attach your Form 8958 to your Form 1040 to identify your community and separate income, deductions, credits, and other return amounts according to the laws of your state. 2012 tax software free Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. 2012 tax software free See Community Property Laws Disregarded, later. 2012 tax software free Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year, later. 2012 tax software free In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. 2012 tax software free In other states, it is separate income. 2012 tax software free Income The following is a discussion of the general effect of community property laws on the federal income tax treatment of certain items of income. 2012 tax software free Wages, earnings, and profits. 2012 tax software free    A spouse's (or your registered domestic partner's) wages, earnings, and net profits from a sole proprietorship are community income and must be evenly split. 2012 tax software free Dividends, interest, and rents. 2012 tax software free    Dividends, interest, and rents from community property are community income and must be evenly split. 2012 tax software free Dividends, interest, and rents from separate property are characterized in accordance with the discussion under Income from separate property , later. 2012 tax software free Example. 2012 tax software free If you and your spouse (or your registered domestic partner) buy a bond that is considered community property under your state laws, half the bond interest belongs to you and half belongs to your spouse. 2012 tax software free You each must show the bond interest and the split of that interest on your Form 8958, and report half the interest on your Form 1040. 2012 tax software free Attach your Form 8958 to your Form 1040. 2012 tax software free Alimony received. 2012 tax software free    Alimony or separate maintenance payments made prior to divorce are taxable to the payee spouse only to the extent they exceed 50% (his or her share) of the reportable community income. 2012 tax software free This is so because the payee spouse is already required to report half of the community income. 2012 tax software free See also Alimony paid , later. 2012 tax software free Gains and losses. 2012 tax software free    Gains and losses are classified as separate or community depending on how the property is held. 2012 tax software free For example, a loss on separate property, such as stock held separately, is a separate loss. 2012 tax software free On the other hand, a loss on community property, such as a casualty loss to your home held as community property, is a community loss. 2012 tax software free See Publication 544, Sales and Other Dispositions of Assets, for information on gains and losses. 2012 tax software free See Publication 547, Casualties, Disasters, and Thefts, for information on losses due to a casualty or theft. 2012 tax software free Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). 2012 tax software free    There are several kinds of individual retirement arrangements (IRAs). 2012 tax software free They are traditional IRAs (including SEP-IRAs), SIMPLE IRAs, and Roth IRAs. 2012 tax software free IRAs and ESAs by law are deemed to be separate property. 2012 tax software free Therefore, taxable IRA and ESA distributions are separate property, even if the funds in the account would otherwise be community property. 2012 tax software free These distributions are wholly taxable to the spouse (or registered domestic partner) whose name is on the account. 2012 tax software free That spouse (or registered domestic partner) is also liable for any penalties and additional taxes on the distributions. 2012 tax software free Pensions. 2012 tax software free    Generally, distributions from pensions will be characterized as community or separate income depending on the respective periods of participation in the pension while married (or during the registered domestic partnership) and domiciled in a community property state or in a noncommunity property state during the total period of participation in the pension. 2012 tax software free See the example under Civil service retirement , later. 2012 tax software free These rules may vary between states. 2012 tax software free Check your state law. 2012 tax software free Lump-sum distributions. 2012 tax software free    If you were born before January 2, 1936, and receive a lump-sum distribution from a qualified retirement plan, you may be able to choose an optional method of figuring the tax on the distribution. 2012 tax software free For the 10-year tax option, you must disregard community property laws. 2012 tax software free For more information, see Publication 575, Pension and Annuity Income, and Form 4972, Tax on Lump-Sum Distributions. 2012 tax software free Civil service retirement. 2012 tax software free    For income tax purposes, community property laws apply to annuities payable under the Civil Service Retirement Act (CSRS) or Federal Employee Retirement System (FERS). 2012 tax software free   Whether a civil service annuity is separate or community income depends on your marital status (or your status as a registered domestic partner) and domicile of the employee when the services were performed for which the annuity is paid. 2012 tax software free Even if you now live in a noncommunity property state and you receive a civil service annuity, it may be community income if it is based on services you performed while married (or during the registered domestic partnership) and domiciled in a community property state. 2012 tax software free   If a civil service annuity is a mixture of community income and separate income, it must be divided between the two kinds of income. 2012 tax software free The division is based on the employee's domicile and marital status (or registered domestic partnership) in community and noncommunity property states during his or her periods of service. 2012 tax software free Example. 2012 tax software free Henry Wright retired this year after 30 years of civil service. 2012 tax software free He and his wife were domiciled in a community property state during the past 15 years. 2012 tax software free Since half the service was performed while the Wrights were married and domiciled in a community property state, half the civil service retirement pay is considered to be community income. 2012 tax software free If Mr. 2012 tax software free Wright receives $1,000 a month in retirement pay, $500 is considered community income—half ($250) is his income and half ($250) is his wife's. 2012 tax software free Military retirement pay. 2012 tax software free    State community property laws apply to military retirement pay. 2012 tax software free Generally, the pay is either separate or community income based on the marital status and domicile of the couple while the member of the Armed Forces was in active military service. 2012 tax software free For example, military retirement pay for services performed during marriage and domicile in a community property state is community income. 2012 tax software free   Active military pay earned while married and domiciled in a community property state is also community income. 2012 tax software free This income is considered to be received half by the member of the Armed Forces and half by the spouse. 2012 tax software free Partnership income. 2012 tax software free    If an interest is held in a partnership, and income from the partnership is attributable to the efforts of either spouse (or registered domestic partner), the partnership income is community property. 2012 tax software free If it is merely a passive investment in a separate property partnership, the partnership income will be characterized in accordance with the discussion under Income from separate property , later. 2012 tax software free Tax-exempt income. 2012 tax software free    For spouses, community income exempt from federal tax generally keeps its exempt status for both spouses. 2012 tax software free For example, under certain circumstances, income earned outside the United States is tax exempt. 2012 tax software free If you earned income and met the conditions that made it exempt, the income is also exempt for your spouse even though he or she may not have met the conditions. 2012 tax software free Registered domestic partners should consult the particular exclusion provision to see if the exempt status applies to both. 2012 tax software free Income from separate property. 2012 tax software free    In some states, income from separate property is separate income. 2012 tax software free These states include Arizona, California, Nevada, New Mexico, and Washington. 2012 tax software free Other states characterize income from separate property as community income. 2012 tax software free These states include Idaho, Louisiana, Texas, and Wisconsin. 2012 tax software free Exemptions When you file separate returns, you must claim your own exemption amount for that year. 2012 tax software free (See your tax return instructions. 2012 tax software free ) You cannot divide the amount allowed as an exemption for a dependent between you and your spouse (or your registered domestic partner). 2012 tax software free When community funds provide support for more than one person, each of whom otherwise qualifies as a dependent, you and your spouse (or your registered domestic partner) may divide the number of dependency exemptions as explained in the following example. 2012 tax software free Example. 2012 tax software free Ron and Diane White have three dependent children and live in Nevada. 2012 tax software free If Ron and Diane file separately, only Ron can claim his own exemption, and only Diane can claim her own exemption. 2012 tax software free Ron and Diane can agree that one of them will claim the exemption for one, two, or all of their children and the other will claim any remaining exemptions. 2012 tax software free They cannot each claim half of the total exemption amount for their three children. 2012 tax software free Deductions If you file separate returns, your deductions generally depend on whether the expenses involve community or separate income. 2012 tax software free Business and investment expenses. 2012 tax software free    If you file separate returns, expenses incurred to earn or produce community business or investment income are generally divided equally between you and your spouse (or your registered domestic partner). 2012 tax software free Each of you is entitled to deduct one-half of the expenses on your separate returns. 2012 tax software free Expenses incurred by a spouse (or registered domestic partner) to produce separate business or investment income is deductible by the spouse (or the registered domestic partner) who earns the corresponding separate business or investment income. 2012 tax software free    Other limits may also apply to business and investment expenses. 2012 tax software free For more information, see Publication 535, Business Expenses, and Publication 550, Investment Income and Expenses. 2012 tax software free Alimony paid. 2012 tax software free    Payments that may otherwise qualify as alimony are not deductible by the payer if they are the recipient spouse's part of community income. 2012 tax software free They are deductible as alimony only to the extent they are more than that spouse's part of community income. 2012 tax software free Example. 2012 tax software free You live in a community property state. 2012 tax software free You are separated but the special rules explained later under Spouses living apart all year do not apply. 2012 tax software free Under a written agreement, you pay your spouse $12,000 of your $20,000 total yearly community income. 2012 tax software free Your spouse receives no other community income. 2012 tax software free Under your state law, earnings of a spouse living separately and apart from the other spouse continue as community property. 2012 tax software free On your separate returns, each of you must report $10,000 of the total community income. 2012 tax software free In addition, your spouse must report $2,000 as alimony received. 2012 tax software free You can deduct $2,000 as alimony paid. 2012 tax software free IRA deduction. 2012 tax software free    Deductions for IRA contributions cannot be split between spouses (or registered domestic partners). 2012 tax software free The deduction for each spouse (or each registered domestic partner) is figured separately and without regard to community property laws. 2012 tax software free Personal expenses. 2012 tax software free   Expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. 2012 tax software free If these expenses are paid from community funds, divide the deduction equally between you and your spouse. 2012 tax software free Credits, Taxes, and Payments The following is a discussion of the general effect of community property laws on the treatment of certain credits, taxes, and payments on your separate return. 2012 tax software free Child tax credit. 2012 tax software free    You may be entitled to a child tax credit for each of your qualifying children. 2012 tax software free You must provide the name and identification number (usually the social security number) of each qualifying child on your return. 2012 tax software free See your tax return instructions for the maximum amount of the credit you can claim for each qualifying child. 2012 tax software free Limit on credit. 2012 tax software free    The credit is limited if your modified adjusted gross income (modified AGI) is above a certain amount. 2012 tax software free The amount at which the limitation (phaseout) begins depends on your filing status. 2012 tax software free Generally, your credit is limited to your tax liability unless you have three or more qualifying children. 2012 tax software free See your tax return instructions for more information. 2012 tax software free Self-employment tax. 2012 tax software free    For the effect of community property laws on the income tax treatment of income from a sole proprietorship and partnerships, see Wages, earnings, and profits and Partnership income , earlier. 2012 tax software free The following rules only apply to persons married for federal tax purposes. 2012 tax software free Registered domestic partners report community income for self-employment tax purposes the same way they do for income tax purposes. 2012 tax software free Sole proprietorship. 2012 tax software free    With regard to net income from a trade or business (other than a partnership) that is community income, self-employment tax is imposed on the spouse carrying on the trade or business. 2012 tax software free Partnerships. 2012 tax software free    All of the distributive share of a married partner's income or loss from a partnership trade or business is attributable to the partner for computing any self-employment tax, even if a portion of the partner's distributive share of income or loss is community income or loss that is otherwise attributable to the partner's spouse for income tax purposes. 2012 tax software free If both spouses are partners, any self-employment tax is allocated based on their distributive shares. 2012 tax software free Federal income tax withheld. 2012 tax software free    Report the credit for federal income tax withheld on community wages in the same manner as your wages. 2012 tax software free If you and your spouse file separate returns on which each of you reports half the community wages, each of you is entitled to credit for half the income tax withheld on those wages. 2012 tax software free Likewise, each registered domestic partner is entitled to credit for half the income tax withheld on those wages. 2012 tax software free Estimated tax payments. 2012 tax software free    In determining whether you must pay estimated tax, apply the estimated tax rules to your estimated income. 2012 tax software free These rules are explained in Publication 505. 2012 tax software free   If you think you may owe estimated tax and want to pay the tax separately (registered domestic partners must pay the tax separately), determine whether you must pay it by taking into account: Half the community income and deductions, All of your separate income and deductions, and Your own exemption and any exemptions for dependents that you may claim. 2012 tax software free   Whether you and your spouse pay estimated tax jointly or separately will not affect your choice of filing joint or separate income tax returns. 2012 tax software free   If you and your spouse paid estimated tax jointly but file separate income tax returns, either of you can claim all of the estimated tax paid, or you may divide it between you in any way that you agree upon. 2012 tax software free   If you cannot agree on how to divide it, the estimated tax you can claim equals the total estimated tax paid times the tax shown on your separate return, divided by the total of the tax shown on your return and your spouse's return. 2012 tax software free   If you paid your estimated taxes separately, you get credit for only the estimated taxes you paid. 2012 tax software free Earned income credit. 2012 tax software free    You may be entitled to an earned income credit (EIC). 2012 tax software free You cannot claim this credit if your filing status is married filing separately. 2012 tax software free   If you are married, but qualify to file as head of household under rules for married taxpayers living apart (see Publication 501, Exemptions, Standard Deduction, and Filing Information), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under community property laws. 2012 tax software free That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. 2012 tax software free Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. 2012 tax software free The same rule applies to registered domestic partners. 2012 tax software free    This rule does not apply when determining your adjusted gross income (AGI) for the EIC. 2012 tax software free Your AGI includes that part of both your and your spouse's (or your registered domestic partner's) wages that you are required to include in gross income shown on your tax return. 2012 tax software free   For more information about the EIC, see Publication 596, Earned Income Credit (EIC). 2012 tax software free Overpayments. 2012 tax software free    The amount of an overpayment on a joint return is allocated under the community property laws of the state in which you are domiciled. 2012 tax software free If, under the laws of your state, community property is subject to premarital or other separate debts of either spouse, the full joint overpayment may be used to offset the obligation. 2012 tax software free If, under the laws of your state, community property is not subject to premarital or other separate debts of either spouse, only the portion of the joint overpayment allocated to the spouse liable for the obligation can be used to offset that liability. 2012 tax software free The portion allocated to the other spouse can be refunded. 2012 tax software free Community Property Laws Disregarded The following discussions are situations where special rules apply to community property and community income for spouses. 2012 tax software free These rules do not apply to registered domestic partners. 2012 tax software free Certain community income not treated as community income by one spouse. 2012 tax software free    Community property laws may not apply to an item of community income that you received but did not treat as community income. 2012 tax software free You are responsible for reporting all of that income item if: You treat the item as if only you are entitled to the income, and You do not notify your spouse of the nature and amount of the income by the due date for filing the return (including extensions). 2012 tax software free Relief from liability arising from community property law. 2012 tax software free    You are not responsible for the tax relating to an item of community income if all the following conditions are met. 2012 tax software free You did not file a joint return for the tax year. 2012 tax software free You did not include an item of community income in gross income. 2012 tax software free The item of community income you did not include is one of the following: Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee. 2012 tax software free Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor. 2012 tax software free Your spouse's (or former spouse's) distributive share of partnership income. 2012 tax software free Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). 2012 tax software free Use the appropriate community property law to determine what is separate property. 2012 tax software free Any other income that belongs to your spouse (or former spouse) under community property law. 2012 tax software free You establish that you did not know of, and had no reason to know of, that community income. 2012 tax software free Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. 2012 tax software free Requesting relief. 2012 tax software free    For information on how and when to request relief from liabilities arising from community property laws, see Community Property Laws in Publication 971, Innocent Spouse Relief. 2012 tax software free Equitable relief. 2012 tax software free    If you do not qualify for the relief discussed earlier under Relief from liability arising from community property law and are now liable for an underpaid or understated tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief. 2012 tax software free To request equitable relief, you must file Form 8857, Request for Innocent Spouse Relief. 2012 tax software free Also see Publication 971. 2012 tax software free Spousal agreements. 2012 tax software free    In some states a married couple may enter into an agreement that affects the status of property or income as community or separate property. 2012 tax software free Check your state law to determine how it affects you. 2012 tax software free Nonresident alien spouse. 2012 tax software free    If you are a U. 2012 tax software free S. 2012 tax software free citizen or resident alien and you choose to treat your nonresident alien spouse as a U. 2012 tax software free S. 2012 tax software free resident for tax purposes and you are domiciled in a community property state or country, use the community property rules. 2012 tax software free You must file a joint return for the year you make the choice. 2012 tax software free You can file separate returns in later years. 2012 tax software free For details on making this choice, see Publication 519, U. 2012 tax software free S. 2012 tax software free Tax Guide for Aliens. 2012 tax software free   If you are a U. 2012 tax software free S. 2012 tax software free citizen or resident alien and do not choose to treat your nonresident alien spouse as a U. 2012 tax software free S. 2012 tax software free resident for tax purposes, treat your community income as explained next under Spouses living apart all year. 2012 tax software free However, you do not have to meet the four conditions discussed there. 2012 tax software free Spouses living apart all year. 2012 tax software free    If you are married at any time during the calendar year, special rules apply for reporting certain community income. 2012 tax software free You must meet all the following conditions for these special rules to apply. 2012 tax software free You and your spouse lived apart all year. 2012 tax software free You and your spouse did not file a joint return for a tax year beginning or ending in the calendar year. 2012 tax software free You and/or your spouse had earned income for the calendar year that is community income. 2012 tax software free You and your spouse have not transferred, directly or indirectly, any of the earned income in condition (3) above between yourselves before the end of the year. 2012 tax software free Do not take into account transfers satisfying child support obligations or transfers of very small amounts or value. 2012 tax software free If all these conditions are met, you and your spouse must report your community income as discussed next. 2012 tax software free See also Certain community income not treated as community income by one spouse , earlier. 2012 tax software free Earned income. 2012 tax software free    Treat earned income that is not trade or business or partnership income as the income of the spouse who performed the services to earn the income. 2012 tax software free Earned income is wages, salaries, professional fees, and other pay for personal services. 2012 tax software free   Earned income does not include amounts paid by a corporation that are a distribution of earnings and profits rather than a reasonable allowance for personal services rendered. 2012 tax software free Trade or business income. 2012 tax software free    Treat income and related deductions from a trade or business that is not a partnership as those of the spouse carrying on the trade or business. 2012 tax software free Partnership income or loss. 2012 tax software free    Treat income or loss from a trade or business carried on by a partnership as the income or loss of the spouse who is the partner. 2012 tax software free Separate property income. 2012 tax software free    Treat income from the separate property of one spouse as the income of that spouse. 2012 tax software free Social security benefits. 2012 tax software free    Treat social security and equivalent railroad retirement benefits as the income of the spouse who receives the benefits. 2012 tax software free Other income. 2012 tax software free    Treat all other community income, such as dividends, interest, rents, royalties, or gains, as provided under your state's community property law. 2012 tax software free Example. 2012 tax software free George and Sharon were married throughout the year but did not live together at any time during the year. 2012 tax software free Both domiciles were in a community property state. 2012 tax software free They did not file a joint return or transfer any of their earned income between themselves. 2012 tax software free During the year their incomes were as follows:   George Sharon Wages $20,000 $22,000 Consulting business 5,000   Partnership   10,000 Dividends from separate property 1,000 2,000 Interest from community property 500 500 Total $26,500 $34,500 Under the community property law of their state, all the income is considered community income. 2012 tax software free (Some states treat income from separate property as separate income—check your state law. 2012 tax software free ) Sharon did not take part in George's consulting business. 2012 tax software free Ordinarily, on their separate returns they would each report $30,500, half the total community income of $61,000 ($26,500 + $34,500). 2012 tax software free But because they meet the four conditions listed earlier under Spouses living apart all year , they must disregard community property law in reporting all their income (except the interest income) from community property. 2012 tax software free They each report on their returns only their own earnings and other income, and their share of the interest income from community property. 2012 tax software free George reports $26,500 and Sharon reports $34,500. 2012 tax software free Other separated spouses. 2012 tax software free    If you and your spouse are separated but do not meet the four conditions discussed earlier under Spouses living apart all year , you must treat your income according to the laws of your state. 2012 tax software free In some states, income earned after separation but before a decree of divorce continues to be community income. 2012 tax software free In other states, it is separate income. 2012 tax software free End of the Community The marital community may end in several ways. 2012 tax software free When the marital community ends, the community assets (money and property) are divided between the spouses. 2012 tax software free Similarly, a registered domestic partnership may end in several ways and the community assets must be divided between the registered domestic partners. 2012 tax software free Death of spouse. 2012 tax software free    If you own community property and your spouse dies, the total fair market value (FMV) of the community property, including the part that belongs to you, generally becomes the basis of the entire property. 2012 tax software free For this rule to apply, at least half the value of the community property interest must be includible in your spouse's gross estate, whether or not the estate must file a return (this rule does not apply to registered domestic partners). 2012 tax software free Example. 2012 tax software free Bob and Ann owned community property that had a basis of $80,000. 2012 tax software free When Bob died, his and Ann's community property had an FMV of $100,000. 2012 tax software free One-half of the FMV of their community interest was includible in Bob's estate. 2012 tax software free The basis of Ann's half of the property is $50,000 after Bob died (half of the $100,000 FMV). 2012 tax software free The basis of the other half to Bob's heirs is also $50,000. 2012 tax software free   For more information about the basis of assets, see Publication 551, Basis of Assets. 2012 tax software free    The above basis rule does not apply if your spouse died in 2010 and the spouse's executor elected out of the estate tax, in which case section 1022 will apply. 2012 tax software free See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for additional information. 2012 tax software free Divorce or separation. 2012 tax software free    If spouses divorce or separate, the (equal or unequal) division of community property in connection with the divorce or property settlement does not result in a gain or loss. 2012 tax software free For registered domestic partners, an unequal division of community property in a property settlement may result in a gain or loss. 2012 tax software free For information on the tax consequences of the division of property under a property settlement or divorce decree, see Publication 504. 2012 tax software free   Each spouse (or each registered domestic partner) is taxed on half the community income for the part of the year before the community ends. 2012 tax software free However, see Spouses living apart all year , earlier. 2012 tax software free Any income received after the community ends is separate income. 2012 tax software free This separate income is taxable only to the spouse (or the registered domestic partner) to whom it belongs. 2012 tax software free   An absolute decree of divorce or annulment ends the marital community in all community property states. 2012 tax software free A decree of annulment, even though it holds that no valid marriage ever existed, usually does not nullify community property rights arising during the “marriage. 2012 tax software free ” However, you should check your state law for exceptions. 2012 tax software free   A decree of legal separation or of separate maintenance may or may not end the marital community. 2012 tax software free The court issuing the decree may terminate the marital community and divide the property between the spouses. 2012 tax software free   A separation agreement may divide the community property between you and your spouse. 2012 tax software free It may provide that this property, along with future earnings and property acquired, will be separate property. 2012 tax software free This agreement may end the community. 2012 tax software free   In some states, the marital community ends when the spouses permanently separate, even if there is no formal agreement. 2012 tax software free Check your state law. 2012 tax software free   If you are a registered domestic partner, you should check your state law to determine when the community ends. 2012 tax software free Preparing a Federal Income Tax Return The following discussion does not apply to spouses who meet the conditions under Spouses living apart all year , discussed earlier. 2012 tax software free Those spouses must report their community income as explained in that discussion. 2012 tax software free Joint Return Versus Separate Returns Ordinarily, filing a joint return will give you a greater tax advantage than filing a separate return. 2012 tax software free But in some cases, your combined income tax on separate returns may be less than it would be on a joint return. 2012 tax software free This discussion concerning joint versus separate returns does not apply to registered domestic partners. 2012 tax software free The following rules apply if your filing status is married filing separately. 2012 tax software free You should itemize deductions if your spouse itemizes deductions, because you cannot claim the standard deduction. 2012 tax software free You cannot take the credit for child and dependent care expenses in most instances. 2012 tax software free You cannot take the earned income credit. 2012 tax software free You cannot exclude any interest income from qualified U. 2012 tax software free S. 2012 tax software free savings bonds that you used for higher education expenses. 2012 tax software free You cannot take the credit for the elderly or the disabled unless you lived apart from your spouse all year. 2012 tax software free You may have to include in income more of any social security benefits (including any equivalent railroad retirement benefits) you received during the year than you would on a joint return. 2012 tax software free You cannot deduct interest paid on a qualified student loan. 2012 tax software free You cannot take the education credits. 2012 tax software free You may have a smaller child tax credit than you would on a joint return. 2012 tax software free You cannot take the exclusion or credit for adoption expenses in most instances. 2012 tax software free Figure your tax both on a joint return and on separate returns under the community property laws of your state. 2012 tax software free You can then compare the tax figured under both methods and use the one that results in less tax. 2012 tax software free Separate Return Preparation If you file separate returns, you and your spouse must each report half of your combined community income and deductions in addition to your separate income and deductions. 2012 tax software free Each of you must complete and attach Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. 2012 tax software free On the appropriate lines of your separate Form 1040, list only your share of the income and deductions on the appropriate lines of your separate tax returns (wages, interest, dividends, etc. 2012 tax software free ). 2012 tax software free The same reporting rule applies to registered domestic partners. 2012 tax software free For a discussion of the effect of community property laws on certain items of income, deductions, credits, and other return amounts, see Identifying Income, Deductions, and Credits , earlier. 2012 tax software free Attach your Form 8958 to your separate return showing how you figured the income, deductions, and federal income tax withheld that each of you reported. 2012 tax software free Form 8958 is used for married spouses in community property states who choose to file married filing separately. 2012 tax software free Form 8958 is also used for registered domestic partners who are domiciled in Nevada, Washington, or California. 2012 tax software free A registered domestic partner in Nevada, Washington, or California must follow state community property laws and report half the combined community income of the individual and his or her registered domestic partner. 2012 tax software free Extension of time to file. 2012 tax software free    An extension of time for filing your separate return does not extend the time for filing your spouse's (or your registered domestic partner's) separate return. 2012 tax software free If you and your spouse file a joint return, you cannot file separate returns after the due date for filing either separate return has passed. 2012 tax software free How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2012 tax software free Free help with your tax return. 2012 tax software free    You can get free help preparing your return nationwide from IRS-certified volunteers. 2012 tax software free The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2012 tax software free The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 tax software free Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2012 tax software free In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2012 tax software free To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2012 tax software free gov, download the IRS2Go app, or call 1-800-906-9887. 2012 tax software free   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2012 tax software free To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2012 tax software free aarp. 2012 tax software free org/money/taxaide or call 1-888-227-7669. 2012 tax software free For more information on these programs, go to IRS. 2012 tax software free gov and enter “VITA” in the search box. 2012 tax software free Internet. 2012 tax software free    IRS. 2012 tax software free gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2012 tax software free Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 tax software free Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2012 tax software free Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2012 tax software free gov or download the IRS2Go app and select the Refund Status option. 2012 tax software free The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 tax software free Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2012 tax software free You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 tax software free The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 tax software free Use the Interactive Tax Assistant (ITA) to research your tax questions. 2012 tax software free No need to wait on the phone or stand in line. 2012 tax software free The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2012 tax software free When you reach the response screen, you can print the entire interview and the final response for your records. 2012 tax software free New subject areas are added on a regular basis. 2012 tax software free  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2012 tax software free gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2012 tax software free You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 2012 tax software free The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2012 tax software free When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2012 tax software free Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2012 tax software free You can also ask the IRS to mail a return or an account transcript to you. 2012 tax software free Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2012 tax software free gov or by calling 1-800-908-9946. 2012 tax software free Tax return and tax account transcripts are generally available for the current year and the past three years. 2012 tax software free Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2012 tax software free Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2012 tax software free If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2012 tax software free Check the status of your amended return using Where's My Amended Return? Go to IRS. 2012 tax software free gov and enter Where's My Amended Return? in the search box. 2012 tax software free You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 tax software free It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 tax software free Make a payment using one of several safe and convenient electronic payment options available on IRS. 2012 tax software free gov. 2012 tax software free Select the Payment tab on the front page of IRS. 2012 tax software free gov for more information. 2012 tax software free Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2012 tax software free Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2012 tax software free gov. 2012 tax software free Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2012 tax software free Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2012 tax software free gov. 2012 tax software free Request an Electronic Filing PIN by going to IRS. 2012 tax software free gov and entering Electronic Filing PIN in the search box. 2012 tax software free Download forms, instructions and publications, including accessible versions for people with disabilities. 2012 tax software free Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2012 tax software free gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2012 tax software free An employee can answer questions about your tax account or help you set up a payment plan. 2012 tax software free Before you visit, check the Office Locator on IRS. 2012 tax software free gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2012 tax software free If you have a special need, such as a disability, you can request an appointment. 2012 tax software free Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2012 tax software free Apply for an Employer Identification Number (EIN). 2012 tax software free Go to IRS. 2012 tax software free gov and enter Apply for an EIN in the search box. 2012 tax software free Read the Internal Revenue Code, regulations, or other official guidance. 2012 tax software free Read Internal Revenue Bulletins. 2012 tax software free Sign up to receive local and national tax news and more by email. 2012 tax software free Just click on “subscriptions” above the search box on IRS. 2012 tax software free gov and choose from a variety of options. 2012 tax software free    Phone. 2012 tax software free You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2012 tax software free Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 tax software free Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2012 tax software free gov, or download the IRS2Go app. 2012 tax software free Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2012 tax software free The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 tax software free Most VITA and TCE sites offer free electronic filing. 2012 tax software free Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2012 tax software free Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2012 tax software free Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2012 tax software free If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2012 tax software free The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 tax software free Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 tax software free Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2012 tax software free The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 tax software free Note, the above information is for our automated hotline. 2012 tax software free Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2012 tax software free Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2012 tax software free You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 tax software free It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 tax software free Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2012 tax software free You should receive your order within 10 business days. 2012 tax software free Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2012 tax software free If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2012 tax software free Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2012 tax software free The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2012 tax software free These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2012 tax software free    Walk-in. 2012 tax software free You can find a selection of forms, publications and services — in-person. 2012 tax software free Products. 2012 tax software free You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2012 tax software free Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2012 tax software free Services. 2012 tax software free You can walk in to your local TAC for face-to-face tax help. 2012 tax software free An employee can answer questions about your tax account or help you set up a payment plan. 2012 tax software free Before visiting, use the Office Locator tool on IRS. 2012 tax software free gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2012 tax software free    Mail. 2012 tax software free You can send your order for forms, instructions, and publications to the address below. 2012 tax software free You should receive a response within 10 business days after your request is received. 2012 tax software free Internal Revenue Service 1201 N. 2012 tax software free Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. 2012 tax software free The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2012 tax software free Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2012 tax software free   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2012 tax software free We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2012 tax software free You face (or your business is facing) an immediate threat of adverse action. 2012 tax software free You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2012 tax software free   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2012 tax software free Here's why we can help: TAS is an independent organization within the IRS. 2012 tax software free Our advocates know how to work with the IRS. 2012 tax software free Our services are free and tailored to meet your needs. 2012 tax software free We have offices in every state, the District of Columbia, and Puerto Rico. 2012 tax software free   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. 2012 tax software free irs. 2012 tax software free gov/advocate, or call us toll-free at 1-877-777-4778. 2012 tax software free   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2012 tax software free If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. 2012 tax software free irs. 2012 tax software free gov/sams. 2012 tax software free Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 2012 tax software free Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 2012 tax software free Visit www. 2012 tax software free irs. 2012 tax software free gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List. 2012 tax software free Prev  Up  Next   Home   More Online Publications