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2014 1040ez

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2014 1040ez

2014 1040ez Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. 2014 1040ez Proc. 2014 1040ez 2012-23 Table of Contents SECTION 1. 2014 1040ez PURPOSE SECTION 2. 2014 1040ez BACKGROUND SECTION 3. 2014 1040ez SCOPE SECTION 4. 2014 1040ez APPLICATION. 2014 1040ez 01 Limitations on Depreciation Deductions for Certain Automobiles. 2014 1040ez . 2014 1040ez 02 Inclusions in Income of Lessees of Passenger Automobiles. 2014 1040ez SECTION 5. 2014 1040ez EFFECTIVE DATE SECTION 6. 2014 1040ez DRAFTING INFORMATION SECTION 1. 2014 1040ez PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. 2014 1040ez The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. 2014 1040ez SECTION 2. 2014 1040ez BACKGROUND . 2014 1040ez 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. 2014 1040ez For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. 2014 1040ez The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. 2014 1040ez This change reflects the higher rate of price inflation for trucks and vans since 1988. 2014 1040ez . 2014 1040ez 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. 2014 1040ez L. 2014 1040ez No. 2014 1040ez 111-312, 124 Stat. 2014 1040ez 3296 (Dec. 2014 1040ez 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. 2014 1040ez Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. 2014 1040ez . 2014 1040ez 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). 2014 1040ez Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. 2014 1040ez Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). 2014 1040ez Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. 2014 1040ez This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. 2014 1040ez . 2014 1040ez 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. 2014 1040ez The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. 2014 1040ez Under § 1. 2014 1040ez 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. 2014 1040ez One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. 2014 1040ez Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. 2014 1040ez SECTION 3. 2014 1040ez SCOPE . 2014 1040ez 01 The limitations on depreciation deductions in section 4. 2014 1040ez 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. 2014 1040ez . 2014 1040ez 02 The tables in section 4. 2014 1040ez 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. 2014 1040ez Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. 2014 1040ez See Rev. 2014 1040ez Proc. 2014 1040ez 2007-30, 2007-1 C. 2014 1040ez B. 2014 1040ez 1104, for passenger automobiles first leased during calendar year 2007; Rev. 2014 1040ez Proc. 2014 1040ez 2008-22, 2008-1 C. 2014 1040ez B. 2014 1040ez 658, for passenger automobiles first leased during calendar year 2008; Rev. 2014 1040ez Proc. 2014 1040ez 2009-24, 2009-17 I. 2014 1040ez R. 2014 1040ez B. 2014 1040ez 885, for passenger automobiles first leased during calendar year 2009; Rev. 2014 1040ez Proc. 2014 1040ez 2010-18, 2010-9 I. 2014 1040ez R. 2014 1040ez B. 2014 1040ez 427, as amplified and modified by section 4. 2014 1040ez 03 of Rev. 2014 1040ez Proc. 2014 1040ez 2011-21, 2011-12 I. 2014 1040ez R. 2014 1040ez B. 2014 1040ez 560, for passenger automobiles first leased during calendar year 2010; and Rev. 2014 1040ez Proc. 2014 1040ez 2011-21, for passenger automobiles first leased during calendar year 2011. 2014 1040ez SECTION 4. 2014 1040ez APPLICATION . 2014 1040ez 01 Limitations on Depreciation Deductions for Certain Automobiles. 2014 1040ez (1) Amount of the inflation adjustment. 2014 1040ez (a) Passenger automobiles (other than trucks or vans). 2014 1040ez Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. 2014 1040ez Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. 2014 1040ez The new car component of the CPI was 115. 2014 1040ez 2 for October 1987 and 143. 2014 1040ez 419 for October 2011. 2014 1040ez The October 2011 index exceeded the October 1987 index by 28. 2014 1040ez 219. 2014 1040ez Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. 2014 1040ez 5 percent (28. 2014 1040ez 219/115. 2014 1040ez 2 x 100%). 2014 1040ez The dollar limitations in § 280F(a) are multiplied by a factor of 0. 2014 1040ez 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. 2014 1040ez This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. 2014 1040ez (b) Trucks and vans. 2014 1040ez To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. 2014 1040ez The new truck component of the CPI was 112. 2014 1040ez 4 for October 1987 and 146. 2014 1040ez 607 for October 2011. 2014 1040ez The October 2011 index exceeded the October 1987 index by 34. 2014 1040ez 207. 2014 1040ez Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. 2014 1040ez 43 percent (34. 2014 1040ez 207/112. 2014 1040ez 4 x 100%). 2014 1040ez The dollar limitations in § 280F(a) are multiplied by a factor of 0. 2014 1040ez 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. 2014 1040ez This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. 2014 1040ez (2) Amount of the limitation. 2014 1040ez Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. 2014 1040ez Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. 2014 1040ez Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. 2014 1040ez REV. 2014 1040ez PROC. 2014 1040ez 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. 2014 1040ez PROC. 2014 1040ez 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. 2014 1040ez PROC. 2014 1040ez 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. 2014 1040ez PROC. 2014 1040ez 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . 2014 1040ez 02 Inclusions in Income of Lessees of Passenger Automobiles. 2014 1040ez A taxpayer must follow the procedures in § 1. 2014 1040ez 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. 2014 1040ez In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. 2014 1040ez REV. 2014 1040ez PROC. 2014 1040ez 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. 2014 1040ez PROC. 2014 1040ez 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. 2014 1040ez EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. 2014 1040ez SECTION 6. 2014 1040ez DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. 2014 1040ez Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). 2014 1040ez For further information regarding this revenue procedure, contact Mr. 2014 1040ez Harvey at (202) 622-4930 (not a toll-free call). 2014 1040ez Prev  Up  Next   Home   More Internal Revenue Bulletins
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Has your business become the victim of a data security breach?

It is almost impossible to be in business and not collect or hold personally identifying information — names and addresses, Social Security numbers, etc., about your customers, employees or patients. If this information is lost or stolen, it could put these individuals at risk for identity theft

However, not all compromises of personal information result in identity theft.  The type of personal information compromised can significantly affect the degree of potential damage. What steps should you take and whom should you contact if personal information is compromised? Answers vary depending on the situation; however, the following information can help you make smart, sound decisions. Check federal and state laws or regulations for any specific requirements for your business.

Here are three important steps to take when you first realize your business has encountered a data security breach.

  • Notify law enforcement - When the compromise could result in harm to a person or business, call your local police department immediately. Report your situation and the potential risk for identity theft.
  • Notify affected businesses - Information compromises can affect other businesses, such as banks or credit issuers. If names and Social Security numbers have been stolen, you can contact the major credit bureaus for additional information or advice.
  • Notify individuals - Generally, early notification to individuals whose personal information has been compromised allows them to take steps to mitigate the misuse of their information.

Other resources for businesses facing a data security breach.

Identity protection page

 

Page Last Reviewed or Updated: 21-Mar-2014

The 2014 1040ez

2014 1040ez 6. 2014 1040ez   Dual-Status Tax Year Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Income Subject to Tax Restrictions for Dual-Status Taxpayers Exemptions How To Figure TaxIncome Tax Credits and Payments Forms To File When and Where To File Introduction You have a dual-status tax year when you have been both a resident alien and a nonresident alien in the same year. 2014 1040ez Dual status does not refer to your citizenship; it refers only to your resident status in the United States. 2014 1040ez In determining your U. 2014 1040ez S. 2014 1040ez income tax liability for a dual-status tax year, different rules apply for the part of the year you are a resident of the United States and the part of the year you are a nonresident. 2014 1040ez The most common dual-status tax years are the years of arrival and departure. 2014 1040ez See Dual-Status Aliens in chapter 1. 2014 1040ez If you are married and choose to be treated as a U. 2014 1040ez S. 2014 1040ez resident for the entire year, as explained in chapter 1, the rules of this chapter do not apply to you for that year. 2014 1040ez Topics - This chapter discusses: Income subject to tax, Restrictions for dual-status taxpayers, Exemptions, How to figure the tax, Forms to file, When and where to file, and How to fill out a dual-status return. 2014 1040ez Useful Items - You may want to see: Publication 503 Child and Dependent Care Expenses 514 Foreign Tax Credit for Individuals 575 Pension and Annuity Income Form (and Instructions) 1040 U. 2014 1040ez S. 2014 1040ez Individual Income Tax Return 1040-C U. 2014 1040ez S. 2014 1040ez Departing Alien Income Tax Return 1040-ES Estimated Tax for Individuals 1040-ES (NR) U. 2014 1040ez S. 2014 1040ez Estimated Tax for Nonresident Alien Individuals 1040NR U. 2014 1040ez S. 2014 1040ez Nonresident Alien Income Tax Return 1116 Foreign Tax Credit See chapter 12 for information about getting these publications and forms. 2014 1040ez Tax Year You must file your tax return on the basis of an annual accounting period called a tax year. 2014 1040ez If you have not previously established a fiscal tax year, your tax year is the calendar year. 2014 1040ez A calendar year is 12 consecutive months ending on December 31. 2014 1040ez If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December, or a 52–53 week year) and are considered to be a U. 2014 1040ez S. 2014 1040ez resident for any calendar year, you will be treated as a U. 2014 1040ez S. 2014 1040ez resident for any part of your fiscal year that falls within that calendar year. 2014 1040ez Income Subject to Tax For the part of the year you are a resident alien, you are taxed on income from all sources. 2014 1040ez Income from sources outside the United States is taxable if you receive it while you are a resident alien. 2014 1040ez The income is taxable even if you earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the end of the year. 2014 1040ez For the part of the year you are a nonresident alien, you are taxed on income from U. 2014 1040ez S. 2014 1040ez sources and on certain foreign source income treated as effectively connected with a U. 2014 1040ez S. 2014 1040ez trade or business. 2014 1040ez (The rules for treating foreign source income as effectively connected are discussed in chapter 4 under Foreign Income. 2014 1040ez ) Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien. 2014 1040ez The income is not taxable even if you earned it while you were a resident alien or if you became a resident alien or a U. 2014 1040ez S. 2014 1040ez citizen after receiving it and before the end of the year. 2014 1040ez Income from U. 2014 1040ez S. 2014 1040ez sources is taxable whether you receive it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. 2014 1040ez Generally, tax treaty provisions apply only to the part of the year you were a nonresident. 2014 1040ez In certain cases, however, treaty provisions may apply while you were a resident alien. 2014 1040ez See chapter 9 for more information. 2014 1040ez When determining what income is taxed in the United States, you must consider exemptions under U. 2014 1040ez S. 2014 1040ez tax law as well as the reduced tax rates and exemptions provided by tax treaties between the United States and certain foreign countries. 2014 1040ez For a further discussion of tax treaties, see chapter 9. 2014 1040ez Restrictions for Dual-Status Taxpayers The following restrictions apply if you are filing a tax return for a dual-status tax year. 2014 1040ez 1) Standard deduction. 2014 1040ez   You cannot use the standard deduction allowed on Form 1040. 2014 1040ez However, you can itemize any allowable deductions. 2014 1040ez 2) Exemptions. 2014 1040ez   Your total deduction for the exemptions for your spouse and allowable dependents cannot be more than your taxable income (figured without deducting personal exemptions) for the period you are a resident alien. 2014 1040ez 3) Head of household. 2014 1040ez   You cannot use the head of household Tax Table column or Tax Computation Worksheet. 2014 1040ez 4) Joint return. 2014 1040ez   You cannot file a joint return. 2014 1040ez However, see Choosing Resident Alien Status under Dual-Status Aliens in chapter 1. 2014 1040ez 5) Tax rates. 2014 1040ez   If you are married and a nonresident of the United States for all or part of the tax year and you do not choose to file jointly as discussed in chapter 1, you must use the Tax Table column or Tax Computation Worksheet for married filing separately to figure your tax on income effectively connected with a U. 2014 1040ez S. 2014 1040ez trade or business. 2014 1040ez You cannot use the Tax Table column or Tax Computation Worksheet for married filing jointly or single. 2014 1040ez However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a: Married resident of Canada, Mexico, or South Korea, or Married U. 2014 1040ez S. 2014 1040ez national. 2014 1040ez  See the instructions for Form 1040NR to see if you qualify. 2014 1040ez    A U. 2014 1040ez S. 2014 1040ez national is an individual who, although not a U. 2014 1040ez S. 2014 1040ez citizen, owes his or her allegiance to the United States. 2014 1040ez U. 2014 1040ez S. 2014 1040ez nationals include American Samoans and Northern Mariana Islanders who chose to become U. 2014 1040ez S. 2014 1040ez nationals instead of U. 2014 1040ez S. 2014 1040ez citizens. 2014 1040ez 6) Tax credits. 2014 1040ez   You cannot claim the education credits, the earned income credit, or the credit for the elderly or the disabled unless: You are married, and You choose to be treated as a resident for all of 2013 by filing a joint return with your spouse who is a U. 2014 1040ez S. 2014 1040ez citizen or resident, as discussed in chapter 1. 2014 1040ez Exemptions As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 2014 1040ez Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 2014 1040ez The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 2014 1040ez You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 2014 1040ez Special rules apply to exemptions for the part of the tax year you are a nonresident alien if you are a: Resident of Canada, Mexico, or South Korea, U. 2014 1040ez S. 2014 1040ez national, or Student or business apprentice from India. 2014 1040ez For more information, see Exemptions in chapter 5. 2014 1040ez How To Figure Tax When you figure your U. 2014 1040ez S. 2014 1040ez tax for a dual-status year, you are subject to different rules for the part of the year you are a resident and the part of the year you are a nonresident. 2014 1040ez Income All income for your period of residence and all income that is effectively connected with a trade or business in the United States for your period of nonresidence, after allowable deductions, is added and taxed at the rates that apply to U. 2014 1040ez S. 2014 1040ez citizens and residents. 2014 1040ez Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate. 2014 1040ez You cannot take any deductions against this income. 2014 1040ez Social security and railroad retirement benefits. 2014 1040ez   During the part of the year you are a nonresident alien, 85% of any U. 2014 1040ez S. 2014 1040ez social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 2014 1040ez (See The 30% Tax in chapter 4. 2014 1040ez )   During the part of the year you are a resident alien, part of the social security and the equivalent portion of tier 1 railroad retirement benefits will be taxed at graduated rates if your modified adjusted gross income plus half of these benefits is more than a certain base amount. 2014 1040ez Use the Social Security Benefits Worksheet in the Form 1040 instructions to help you figure the taxable part of your social security and equivalent tier 1 railroad retirement benefits for the part of the year you were a resident alien. 2014 1040ez If you received U. 2014 1040ez S. 2014 1040ez social security benefits while you were a nonresident alien, the Social Security Administration will send you Form SSA-1042S showing your combined benefits for the entire year and the amount of tax withheld. 2014 1040ez You will not receive separate statements for the benefits received during your periods of U. 2014 1040ez S. 2014 1040ez residence and nonresidence. 2014 1040ez Therefore, it is important for you to keep careful records of these amounts. 2014 1040ez You will need this information to properly complete your return and determine your tax liability. 2014 1040ez If you received railroad retirement benefits while you were a nonresident alien, the U. 2014 1040ez S. 2014 1040ez Railroad Retirement Board (RRB) will send you Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, and/or Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board. 2014 1040ez If your country of legal residence changed or your rate of tax changed during the tax year, you may receive more than one form. 2014 1040ez Tax Credits and Payments This discussion covers tax credits and payments for dual-status aliens. 2014 1040ez Credits As a dual-status alien, you generally can claim tax credits using the same rules that apply to resident aliens. 2014 1040ez There are certain restrictions that may apply. 2014 1040ez These restrictions are discussed here, along with a brief explanation of credits often claimed by individuals. 2014 1040ez Foreign tax credit. 2014 1040ez   If you have paid or are liable for the payment of income tax to a foreign country on income from foreign sources, you may be able to claim a credit for the foreign taxes. 2014 1040ez   If you claim the foreign tax credit, you generally must file Form 1116 with your income tax return. 2014 1040ez For more information, see the Instructions for Form 1116 and Publication 514. 2014 1040ez Child and dependent care credit. 2014 1040ez   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse so that you can work or look for work. 2014 1040ez Generally, you must be able to claim an exemption for your dependent. 2014 1040ez   Married dual-status aliens can claim the credit only if they choose to file a joint return as discussed in chapter 1, or if they qualify as certain married individuals living apart. 2014 1040ez   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income for that tax year. 2014 1040ez   For more information, get Publication 503 and Form 2441. 2014 1040ez Retirement savings contributions credit. 2014 1040ez   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. 2014 1040ez You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. 2014 1040ez Use Form 8880 to figure the credit. 2014 1040ez For more information, see Publication 590. 2014 1040ez Child tax credit. 2014 1040ez   You may be able to take this credit if you have a qualifying child. 2014 1040ez   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. 2014 1040ez Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). 2014 1040ez Is a U. 2014 1040ez S. 2014 1040ez citizen, a U. 2014 1040ez S. 2014 1040ez national, or a resident alien. 2014 1040ez Did not provide over half of his or her own support for 2013. 2014 1040ez Lived with you more than half of 2013. 2014 1040ez Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. 2014 1040ez Is claimed as a dependent on your return. 2014 1040ez An adopted child is always treated as your own child. 2014 1040ez An adopted child includes a child lawfully placed with you for legal adoption. 2014 1040ez   See your form instructions for additional details. 2014 1040ez Adoption credit. 2014 1040ez   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. 2014 1040ez This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. 2014 1040ez To claim the adoption credit, file Form 8839 with the U. 2014 1040ez S. 2014 1040ez income tax return that you file. 2014 1040ez   Married dual-status aliens can claim the credit only if they choose to file a joint return with a U. 2014 1040ez S. 2014 1040ez citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). 2014 1040ez Payments You can report as payments against your U. 2014 1040ez S. 2014 1040ez income tax liability certain taxes you paid, are considered to have paid, or that were withheld from your income. 2014 1040ez These include: Tax withheld from wages earned in the United States, Taxes withheld at the source from various items of income from U. 2014 1040ez S. 2014 1040ez sources other than wages, Estimated tax paid with Form 1040-ES or Form 1040-ES (NR), and Tax paid with Form 1040-C, at the time of departure from the United States. 2014 1040ez Forms To File The U. 2014 1040ez S. 2014 1040ez income tax return you must file as a dual-status alien depends on whether you are a resident alien or a nonresident alien at the end of the tax year. 2014 1040ez Resident at end of year. 2014 1040ez   You must file Form 1040 if you are a dual-status taxpayer who becomes a resident during the year and who is a U. 2014 1040ez S. 2014 1040ez resident on the last day of the tax year. 2014 1040ez Write “Dual-Status Return” across the top of the return. 2014 1040ez Attach a statement to your return to show the income for the part of the year you are a nonresident. 2014 1040ez You can use Form 1040NR or Form 1040NR-EZ as the statement, but be sure to mark “Dual-Status Statement” across the top. 2014 1040ez Nonresident at end of year. 2014 1040ez   You must file Form 1040NR or Form 1040NR-EZ if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U. 2014 1040ez S. 2014 1040ez resident on the last day of the tax year. 2014 1040ez Write “Dual-Status Return” across the top of the return. 2014 1040ez Attach a statement to your return to show the income for the part of the year you are a resident. 2014 1040ez You can use Form 1040 as the statement, but be sure to mark “Dual-Status Statement” across the top. 2014 1040ez   If you expatriated or terminated your residency in 2013, you may be required to file an expatriation statement (Form 8854) with your tax return. 2014 1040ez For more information, see Expatriation Tax in chapter 4. 2014 1040ez Statement. 2014 1040ez   Any statement must have your name, address, and taxpayer identification number on it. 2014 1040ez You do not need to sign a separate statement or schedule accompanying your return, because your signature on the return also applies to the supporting statements and schedules. 2014 1040ez When and Where To File If you are a resident alien on the last day of your tax year and report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year. 2014 1040ez If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. 2014 1040ez In either case, file your return with the address for dual-status aliens shown on the back page of the Form 1040 instructions. 2014 1040ez If you are a nonresident alien on the last day of your tax year and you report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year if you receive wages subject to withholding. 2014 1040ez If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. 2014 1040ez If you did not receive wages subject to withholding and you report your income on a calendar year basis, you must file no later than June 15 of the year following the close of your tax year. 2014 1040ez If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 6th month following the close of your tax year. 2014 1040ez In any case, mail your return to:  Department of the Treasury Internal Revenue Service  Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. 2014 1040ez O. 2014 1040ez Box 1303 Charlotte, NC 28201-1303 If the regular due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day that is not a Saturday, Sunday, or legal holiday. 2014 1040ez Prev  Up  Next   Home   More Online Publications