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Corrected Tax Return

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Corrected Tax Return

Corrected tax return 6. Corrected tax return   Ingresos de Propinas Table of Contents Introduction Useful Items - You may want to see: Cómo Mantener un Registro Diario de PropinasRegistro electrónico de propinas. Corrected tax return Cómo Declarar las Propinas a su EmpleadorInforme electrónico de propinas. Corrected tax return Declaración final. Corrected tax return Cómo se Declaran las Propinas en la Declaración de Impuestos Asignación de Propinas Introduction Este capítulo es para empleados que reciben propinas. Corrected tax return Todas las propinas que usted reciba son ingresos y están sujetas al impuesto federal sobre los ingresos. Corrected tax return Tiene que incluir en el ingreso bruto todas las propinas que reciba directamente, propinas recibidas por medio de cargos a tarjetas de crédito o débito que le son entregadas por su empleador y su participación de todas las propinas recibidas de un fondo común u otro acuerdo de distribución de propinas. Corrected tax return El valor de las propinas que no son pagadas en efectivo, tales como boletos, pases u otros artículos de valor también son ingresos y están sujetos al impuesto. Corrected tax return La declaración correcta de los ingresos de propinas no es difícil. Corrected tax return Usted tiene que completar tres pasos: Mantener un registro diario de propinas. Corrected tax return Declarar sus propinas a su empleador. Corrected tax return Declarar todas sus propinas en su declaración de impuestos. Corrected tax return  Este capítulo le explicará estos tres pasos y le ayudará a determinar cómo completar su declaración de impuestos si no ha realizado los dos primeros pasos. Corrected tax return Este capítulo también le mostrará cómo tratar las propinas asignadas. Corrected tax return Para información sobre acuerdos y programas especiales relacionados con las propinas, vea la Publicación 531, en inglés. Corrected tax return Useful Items - You may want to see: Publicación 531 Reporting Tip Income (Cómo declarar los ingresos de propinas), en inglés 1244-PR Registro Diario de Propinas Recibidas por el(la) Empleado(a) e Informe al Patrono, en español 1244 Employee's Daily Record of Tips and Report to Employer (Registro Diario de Propinas Recibidas por el(la) Empleado(a) e Informe al Empleador), en inglés Formularios (e Instrucciones) 4137 Social Security and Medicare Tax on Unreported Tip Income (Impuestos del Seguro Social y Medicare sobre el ingreso de propinas no declaradas), en inglés 4070-PR Informe al Patrono de Propinas Recibidas por el(la) Empleado(a), disponible en español 4070 Employee's Report of Tips to Employer (Informe al Empleador de Propinas Recibidas por el(la) Empleado(a)), en inglés Cómo Mantener un Registro Diario de Propinas ¿Por qué mantener un registro diario de propinas?   Usted tiene que mantener un registro diario de propinas para que pueda: Declarar sus propinas correctamente a su empleador, Declarar sus propinas correctamente en su declaración de impuestos y Comprobar sus ingresos de propinas si se cuestiona su declaración. Corrected tax return Cómo mantener un registro diario de propinas. Corrected tax return   Hay dos maneras de mantener un registro diario de propinas. Corrected tax return Puede optar por: Anotar la información sobre sus propinas en un diario de propinas o Mantener copias de documentos que comprueben sus propinas, tales como cuentas de restaurantes y recibos de cargos hechos a tarjetas de crédito o de débito. Corrected tax return Usted debe mantener su registro diario de propinas junto con su documentación tributaria u otra documentación personal. Corrected tax return Tiene que guardar su documentación por el tiempo en que sea importante para la aplicación de la ley tributaria federal. Corrected tax return Para información sobre cuánto tiempo debe guardar esta documentación, vea el tema titulado Cuánto Tiempo Debe Mantener Los Documentos , en el capítulo 1. Corrected tax return    Si mantiene un registro de propinas, puede utilizar el Formulario 4070A-PR, Registro Diario de Propinas del(la) Empleado(a) (o el Formulario 4070-A, en inglés). Corrected tax return Para obtener el Formulario 4070A-PR (o el Formulario 4070-A), pídale al IRS o a su empleador la Publicación 1244-PR (o la Publicación 1244, en inglés). Corrected tax return Asimismo, la Publicación 1244-PR está disponible en el sitio web www. Corrected tax return irs. Corrected tax return gov/pub/irs-pdf/p1244pr. Corrected tax return pdf. Corrected tax return La Publicación 1244-PR (o la Publicación 1244, en inglés) contiene suficientes copias del Formulario 4070A-PR (o del Formulario 4070-A, en inglés) para un año. Corrected tax return Cada día, anote la información solicitada en el formulario. Corrected tax return   Además de la información solicitada en el Formulario 4070A-PR, también es necesario que mantenga un registro u otra documentación de la fecha y el valor de toda propina que reciba que no sea en efectivo, tales como boletos, pases u otros artículos de valor. Corrected tax return Aunque no declara estas propinas a su empleador, tiene que declararlas en su declaración de impuestos. Corrected tax return   Si no utiliza el Formulario 4070A-PR (o el Formulario 4070-A, en inglés), comience su registro escribiendo su nombre, el nombre de su empleador y el nombre del negocio o establecimiento donde trabaja si es distinto al nombre de su empleador. Corrected tax return Luego, cada día que trabaje, anote la fecha y la siguiente información: Propinas en efectivo que obtiene directamente de los clientes o de otros empleados. Corrected tax return Propinas de los clientes que pagan con tarjeta de crédito y de débito que su empleador le paga. Corrected tax return El valor de toda propina que haya recibido que no sea pagada en efectivo, tales como boletos, pases y otros artículos de valor. Corrected tax return La cantidad de propinas que usted le pagó a otros empleados a través de un fondo común u otro acuerdo de distribución de propinas y los nombres de los empleados a los cuales les pagó las propinas. Corrected tax return Registro electrónico de propinas. Corrected tax return   Usted puede utilizar un sistema electrónico provisto por su empleador para mantener un registro de propinas diarias. Corrected tax return En tal caso, tiene que recibir y guardar una copia en papel de este registro. Corrected tax return Cargos por servicios. Corrected tax return   No anote en su registro de propinas la cantidad de ningún cargo por servicios que su empleador añada a la cuenta de un cliente y que luego le pague a usted y que el empleador trate como salario de usted. Corrected tax return Los cargos de este tipo son parte de su salario, no son propinas. Corrected tax return Vea los ejemplos que se presentan a continuación. Corrected tax return Ejemplo 1. Corrected tax return El restaurante Buena Comida añade un cargo del 18% a la cuenta de grupos de 6 o más clientes. Corrected tax return Juanita forma parte de un grupo de 8 personas. Corrected tax return Además del costo de la comida y bebidas que se sirvieron a todos en el grupo de Juanita, la cuenta incluye un monto igual al 18% del costo de las mismas, el cual aparece en la línea para anotar propinas. Corrected tax return Dicho monto se incluye en el total de la cuenta. Corrected tax return Debido a que Juanita no tenía un derecho ilimitado de determinar el monto en la línea para anotar propinas, el cargo del 18% se considera un cargo por servicios. Corrected tax return No anote el cargo del 18% en su registro de propinas. Corrected tax return Los cargos por servicios que se le paguen son considerados salarios y no propinas. Corrected tax return Ejemplo 2. Corrected tax return El restaurante Buena Comida también incluye ejemplos de cálculos para las cantidades de propinas en la parte inferior de la cuenta para la comida y las bebidas servidas a los clientes. Corrected tax return En la parte inferior de la cuenta de David, debajo de la línea para la firma, se incluye una línea en blanco para anotar propinas, además de ejemplos de propinas calculadas en base al 15%, 18% y 20% de los costos de la comida y bebidas que le sirvieron. Corrected tax return Debido a que David tenía libertad para anotar cualquier cantidad en la línea para anotar propinas, o dejarla en blanco, cualquier cantidad que David anote se considera propina. Corrected tax return Cerciórese de incluir esta cantidad en su registro de propinas. Corrected tax return Cómo Declarar las Propinas a su Empleador ¿Por qué tiene que declarar sus propinas a su empleador?   Tiene que declarar sus propinas a su empleador para que: Éste pueda retenerle impuesto federal sobre el ingreso, impuestos del Seguro Social, impuestos de Medicare, Impuesto Adicional del Medicare o impuestos de la jubilación ferroviaria, Éste pueda declarar la cantidad correcta de sus ganancias a la Administración del Seguro Social o a la Junta de la Jubilación Ferroviaria (lo cual afecta sus beneficios cuando se jubile o si queda incapacitado, o los beneficios de su familia cuando usted fallezca) y Usted pueda evitar la Multa por no declarar las propinas a su empleador (tema explicado más adelante). Corrected tax return Propinas que tiene que declarar a su empleador. Corrected tax return   Declárele a su empleador solamente las propinas que reciba en efectivo, en cheques, tarjetas de débito y de crédito. Corrected tax return   Si el total de las propinas que reciba de un trabajo en un mes determinado es menos de $20, no declare las propinas de ese mes a ese empleador. Corrected tax return   Si recibe propinas conforme a un acuerdo para compartir propinas equitativamente, declare sólo las propinas que reciba y retenga. Corrected tax return No declare a su empleador ninguna parte de las propinas que reciba para luego entregárselas a otros empleados. Corrected tax return Sin embargo, tiene que declarar las propinas que reciba de otros empleados. Corrected tax return    No declare a su empleador el valor de las propinas que no reciba en efectivo, tales como boletos o pases. Corrected tax return No se pagan impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuestos de la jubilación ferroviaria sobre estas propinas. Corrected tax return Cómo se declaran las propinas. Corrected tax return    Si su empleador no le proporciona otro medio para declarar las propinas, puede usar el Formulario 4070-PR, en español (o el Formulario 4070, en inglés). Corrected tax return Escriba la información requerida en el formulario, incluya su firma y la fecha y entrégueselo a su empleador. Corrected tax return Si desea obtener copias del formulario para un año completo, comuníquese con el IRS o pídale a su empleador la Publicación 1244-PR (o la Publicación 1244, en inglés). Corrected tax return   Si no usa el Formulario 4070-PR (o el Formulario 4070, en inglés), entréguele a su empleador un informe con la información siguiente: Su nombre, dirección y número de Seguro Social. Corrected tax return El nombre de su empleador, la dirección y el nombre del establecimiento (si es diferente al nombre del empleador). Corrected tax return El mes (o las fechas de cualquier período más corto) en el cual usted recibió propinas. Corrected tax return El total de propinas que se tienen que declarar para ese período. Corrected tax return Usted tiene que firmar y fechar el informe. Corrected tax return Cerciórese de guardar una copia junto con sus documentos tributarios u otros documentos personales. Corrected tax return   Su empleador puede requerirle que declare sus propinas más de una vez al mes. Corrected tax return Sin embargo, el informe no puede abarcar un período mayor de un mes natural. Corrected tax return Informe electrónico de propinas. Corrected tax return   Su empleador puede exigir que facilite su informe de propinas por medios electrónicos. Corrected tax return Cuándo debe declarar las propinas. Corrected tax return   Entregue a su empleador el informe correspondiente a cada mes, a más tardar el día 10 del mes siguiente. Corrected tax return Si el día 10 cae en sábado, domingo o día feriado legal, entonces entréguele el informe a su empleador el próximo día siempre que no sea sábado, domingo o día feriado legal. Corrected tax return Ejemplo. Corrected tax return Tiene que declararle a su empleador la cantidad de propinas que recibió en septiembre del año 2014 a más tardar el día 10 de octubre de 2014. Corrected tax return Declaración final. Corrected tax return   Si deja de trabajar durante el mes, puede declarar las propinas recibidas cuando termine su empleo. Corrected tax return Multa por no declarar las propinas. Corrected tax return   Si no le declara a su empleador las propinas que recibió, tal como se requiere, puede estar sujeto a que se le imponga una multa equivalente al 50% de los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria que adeude sobre las propinas que no declaró. Corrected tax return (Para información sobre estos impuestos, vea Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos, más adelante). Corrected tax return La cantidad de la multa que se impone es adicional a los impuestos que adeude. Corrected tax return   Puede evitar que esta multa le sea impuesta si puede demostrar que existe causa razonable por la cual no le declaró las propinas a su empleador. Corrected tax return Para hacerlo, adjunte un documento escrito a su declaración de impuestos explicando la razón por la cual no declaró la cantidad de propinas que recibió. Corrected tax return Entrega de dinero al empleador para el pago de los impuestos. Corrected tax return   Es posible que lo que gana normalmente no sea suficiente para que su empleador le retenga todos los impuestos que adeude sobre su salario normal más las propinas que recibe. Corrected tax return Si esto ocurre, puede entregarle dinero a su empleador hasta el cierre del año natural para pagar el resto de los impuestos. Corrected tax return   Si no le entrega dinero suficiente a su empleador, el mismo aplicará su salario normal y todo dinero que usted le entregue para los impuestos, en el orden siguiente: Todos los impuestos sobre su salario normal. Corrected tax return Los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuestos de la jubilación ferroviaria sobre las propinas que declaró. Corrected tax return Los impuestos federales, estatales y locales sobre los ingresos sobre las propinas que declaró. Corrected tax return    Su empleador puede descontar de su próximo salario todo impuesto que quede pendiente. Corrected tax return Si al final del año aún no se le han retenido suficientes impuestos, usted puede estar sujeto a una multa por pago insuficiente de impuestos estimados. Corrected tax return Vea la Publicación 505, Tax Withholding and Estimated Tax (Retención de impuestos e impuesto estimado), en inglés, para más información. Corrected tax return    Impuestos no recaudados. Corrected tax return Usted tiene que informar en su declaración de impuestos todo impuesto del Seguro Social y Medicare o impuestos de la jubilación ferroviaria que no se recaudaron al final del año 2013. Corrected tax return Estos impuestos no recaudados aparecerán en su Formulario W-2 del año 2013. Corrected tax return Vea el tema titulado Cómo se declaran los impuestos no recaudados del Seguro Social, Medicare o impuesto de la jubilación ferroviaria sobre propinas declaradas a su empleador , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos, a continuación. Corrected tax return Cómo se Declaran las Propinas en la Declaración de Impuestos Cómo se declaran las propinas. Corrected tax return    Declare las propinas que recibió junto con su salario en la línea 7 del Formulario 1040, la línea 7 del Formulario 1040A o en la línea 1 del Formulario 1040EZ. Corrected tax return Qué propinas se tienen que declarar. Corrected tax return   Usted tiene que informar en su declaración de impuestos todas las propinas que recibió en 2013. Corrected tax return Incluya las que recibió en efectivo y las que no fueron en efectivo. Corrected tax return Toda propina que usted haya declarado en 2013 a su empleador está incluida en los salarios que aparecen en el recuadro 1 de su Formulario W-2. Corrected tax return Sume a la cantidad del recuadro 1 solamente las propinas que usted no le declaró a su empleador. Corrected tax return    Si recibió $20 o más en propinas en efectivo o cargadas a tarjetas de crédito o débito en un mes y no las declaró a su empleador, vea más adelante el tema titulado Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador . Corrected tax return    Si usted no llevó un registro diario de las propinas que recibió, tal como se requiere, y aparece una cantidad en el recuadro 8 del Formulario W-2, vea más adelante la sección titulada Asignación de Propinas . Corrected tax return   Si usted llevó un registro diario y declaró a su empleador todas las propinas que recibió, tal como se requiere conforme a las reglas explicadas anteriormente, añada a la cantidad que aparece en el recuadro 1 de su Formulario W-2 las siguientes propinas: Las propinas que recibió tanto en efectivo como cargadas a tarjetas de crédito o débito que fueron menos de $20 en un mes cualquiera. Corrected tax return El valor de las propinas que no recibió en efectivo, tales como boletos, pases u otros artículos de valor. Corrected tax return Ejemplo. Corrected tax return Mariano Almendares comenzó a trabajar en el Restaurante Océano Azul (su único empleador en el año 2013) el día 30 de junio y recibió $10,000 en salarios durante el año. Corrected tax return Mariano llevó un registro diario de las propinas que recibió durante el año, el cual muestra que en junio recibió $18 en propinas y en el resto del año recibió $7,000 en propinas. Corrected tax return Al Sr. Corrected tax return Almendares no se le requirió declararle a su empleador las propinas que recibió en junio, pero sí le declaró todas las propinas que recibió durante el resto del año, tal como se requiere. Corrected tax return El Formulario W-2 que el Sr. Corrected tax return Almendares recibió del Restaurante Océano Azul muestra $17,000 ($10,000 de salario más $7,000 de propinas declaradas) en el recuadro 1. Corrected tax return El Sr. Corrected tax return Almendares añade a esa cantidad los $18 de propinas que no le declaró al empleador y declara $17,018 como salario en su declaración de impuestos. Corrected tax return Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador. Corrected tax return    Si en un mes recibió $20 o más en propinas en efectivo o cargadas a tarjetas de crédito o débito en algún empleo y no declaró todas esas propinas a su empleador, tiene que declarar como impuesto adicional los impuestos del Seguro Social, Medicare e Impuesto Adicional del Medicare sobre las propinas que no declaró a su empleador. Corrected tax return Para declarar estos impuestos, tiene que presentar una declaración aunque de otro modo no tuviera que presentarla. Corrected tax return Para hacerlo, tiene que usar el Formulario 1040. Corrected tax return (No puede presentar el Formulario 1040EZ ni el Formulario 1040A). Corrected tax return    Use el Formulario 4137, Social Security and Medicare Tax on Unreported Tip Income (Impuestos del Seguro Social y de Medicare sobre el ingreso de propinas no declaradas), en inglés, para calcular los impuestos al Seguro Social y al Medicare. Corrected tax return Anote el impuesto en su declaración como se indica y adjunte el Formulario 4137 debidamente completado a la misma. Corrected tax return Use el Formulario 8959, en inglés, para calcular el Impuesto Adicional del Medicare. Corrected tax return    Si usted está sujeto a la Railroad Retirement Tax Act (Ley Tributaria para la Jubilación Ferroviaria), no puede utilizar el Formulario 4137 para pagar el impuesto para la jubilación ferroviaria sobre propinas no declaradas. Corrected tax return Para obtener crédito para la jubilación ferroviaria, tiene que declarar sus propinas a su empleador. Corrected tax return Cómo se declaran los impuestos no recaudados del Seguro Social, Medicare o impuesto de la jubilación ferroviaria sobre propinas declaradas a su empleador. Corrected tax return   Usted podría tener impuestos sin recaudar si su salario normal no es suficiente para que su empleador retenga todos los impuestos adeudados y si no le dio a su empleador dinero suficiente para pagar el resto de los impuestos. Corrected tax return Para más información, vea Entrega de dinero al empleador para el pago de los impuestos , bajo Cómo Declarar las Propinas a su Empleador, anteriormente. Corrected tax return   Si su empleador no pudo recaudar todos los impuestos al Seguro Social y al Medicare o impuesto de la jubilación ferroviaria que usted adeuda sobre propinas declaradas para 2013, los impuestos por recaudar se mostrarán en el recuadro 12 del Formulario W-2 (códigos A y B). Corrected tax return Tiene que declarar estas cantidades como impuesto adicional en su declaración. Corrected tax return A diferencia de la parte no recaudada del impuesto regular al Medicare (1. Corrected tax return 45%), el Impuesto Adicional del Medicare no recaudado no se declara en el recuadro 12 del Formulario W-2 con el código B. Corrected tax return    Para declarar estos impuestos no recaudados, tiene que presentar una declaración aunque no tuviera que presentarla de otro modo. Corrected tax return Tiene que declarar estos impuestos en la línea 60 del Formulario 1040. Corrected tax return Vea las instrucciones para la línea 60 del Formulario 1040, disponibles en inglés. Corrected tax return (No puede presentar el Formulario 1040EZ ni el Formulario 1040A). Corrected tax return Asignación de Propinas Si su empleador le asignó propinas, las mismas aparecen por separado en el recuadro 8 de su Formulario W-2. Corrected tax return Estas propinas no están incluidas en el recuadro 1 con sus salarios y propinas declaradas. Corrected tax return Si el recuadro 8 está en blanco, lo que se explica en esta sección no es aplicable en su caso. Corrected tax return ¿Qué son propinas asignadas?   Éstas son propinas que su empleador le asignó, además de las que usted le declaró para el año. Corrected tax return Su empleador habrá hecho esto únicamente si: Usted trabajó en un establecimiento (restaurante, bar o negocio similar) que tiene que asignar las propinas a los empleados y La cantidad de propinas que declaró a su empleador fue menos de su parte del 8% de las ventas de comidas y bebidas del establecimiento donde usted trabajó. Corrected tax return De las propinas asignadas, no se retienen impuestos sobre los ingresos, Seguro Social, Medicare, Impuesto Adicional del Medicare ni impuestos de la jubilación ferroviaria. Corrected tax return ¿Cómo se calcula su asignación de propinas?   Las propinas que se le asignan a usted son su parte de una cantidad calculada restando las propinas declaradas de todos los empleados del 8% (u otra tasa más baja aprobada) de las ventas de comida y bebida (que no sean ventas de comida para llevar por los clientes o ventas con un cargo por servicio del 10% o más). Corrected tax return Su parte de esa cantidad fue calculada utilizando un método provisto por un acuerdo laboral entre empleador y empleado o por un método provisto por los reglamentos del IRS basado en las ventas hechas o las horas trabajadas por los empleados. Corrected tax return Para más información sobre el método de asignación exacto utilizado, consulte a su empleador. Corrected tax return ¿Tiene que incluir en la declaración sus propinas asignadas?   Tiene que incluir en la declaración de impuestos todas las propinas que recibió en 2013, incluyendo las propinas pagadas en efectivo como las no pagadas en efectivo. Corrected tax return Todas las propinas que usted haya declarado en 2013 a su empleador están incluidas en los salarios que aparecen en el recuadro 1 de su Formulario W-2. Corrected tax return Sume a la cantidad del recuadro 1 solamente las propinas que usted no le declaró a su empleador. Corrected tax return Esto tiene que incluir toda propina asignada mostrada en el recuadro 8 de su(s) Formulario(s) W-2, a menos que tenga registros confiables que muestren que recibió menos propinas en el año que las cifras asignadas. Corrected tax return   Vea los temas titulados Qué propinas se tienen que declarar , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos y Cómo Mantener un Registro Diario de Propinas , anteriormente. Corrected tax return Cómo declarar las propinas asignadas. Corrected tax return   Declare la cantidad en el recuadro 1 y las propinas asignadas en el recuadro 8 de su(s) Formulario(s) W-2 como salario en la línea 7 del Formulario 1040, en la línea 8 del Formulario 1040NR o en la línea 3 del Formulario 1040NR-EZ. Corrected tax return (No puede presentar el Formulario 1040A ni el Formulario 1040EZ cuando se tienen propinas asignadas). Corrected tax return    Debido a que los impuestos del Seguro Social, Medicare o Impuesto Adicional del Medicare no fueron retenidos de las propinas asignadas, tiene que declararlos como impuestos adicionales en su declaración. Corrected tax return Complete el Formulario 4137 e incluya las propinas asignadas en la línea 1 del formulario. Corrected tax return Vea Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos. Corrected tax return Prev  Up  Next   Home   More Online Publications
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Letter 3217C Frequently Asked Questions (FAQs)

What is the letter telling me?

This letter is telling you we have accepted your oral or written request to pay what you owe IRS in installments. It provides you with a specific dollar amount to pay each month and when your payment is due. It also provides the address that your payments should be mailed to. Included is the dollar amount for the fee we charge to establish an agreement. The amount varies depending on the type of agreement that is established. The letter also provides instructions on how to apply for the Low Income Fee Reduction (if you qualify).

What do I have to do?

The letter contains your payment due date. You should mail your payment to us 5 days prior to the due date. It tells you what items you need to put on your check so it can be correctly identified and applied to your account.

How much time do I have?

The letter is usually mailed 4 to 6 weeks before your first payment is due.

What happens if I don't take any action?

If you fail to make your payments the IRS can begin enforcement action by placing a levy on your bank account or wages or file a lien on personal property.

Who should I contact?

If you are unable to make your monthly payment, you should contact IRS as soon as possible. Expeditious contact prior to your payment due date may temporarily stop enforcement actions. The person who answers the phone will assist you.

Page Last Reviewed or Updated: 03-Feb-2014

The Corrected Tax Return

Corrected tax return 8. Corrected tax return   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. Corrected tax return Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. Corrected tax return Introduction This chapter discusses how to pay your U. Corrected tax return S. Corrected tax return income tax as you earn or receive income during the year. Corrected tax return In general, the federal income tax is a pay as you go tax. Corrected tax return There are two ways to pay as you go. Corrected tax return Withholding. Corrected tax return If you are an employee, your employer probably withholds income tax from your pay. Corrected tax return Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. Corrected tax return In each case, the amount withheld is paid to the U. Corrected tax return S. Corrected tax return Treasury in your name. Corrected tax return Estimated tax. Corrected tax return If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Corrected tax return People who are in business for themselves generally will have to pay their tax this way. Corrected tax return You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. Corrected tax return Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Corrected tax return Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. Corrected tax return Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. Corrected tax return S. Corrected tax return Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. Corrected tax return S. Corrected tax return Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. Corrected tax return S. Corrected tax return Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. Corrected tax return Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. Corrected tax return If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. Corrected tax return If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. Corrected tax return S. Corrected tax return citizens. Corrected tax return If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. Corrected tax return If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. Corrected tax return However, if the income is effectively connected with a U. Corrected tax return S. Corrected tax return trade or business, file Form W-8ECI instead. Corrected tax return Withholding From Compensation The following discussion generally applies only to nonresident aliens. Corrected tax return Tax is withheld from resident aliens in the same manner as U. Corrected tax return S. Corrected tax return citizens. Corrected tax return Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. Corrected tax return S. Corrected tax return citizens. Corrected tax return Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. Corrected tax return Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. Corrected tax return Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). Corrected tax return These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). Corrected tax return Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. Corrected tax return This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. Corrected tax return Enter your social security number (SSN) on line 2. Corrected tax return Do not enter an individual taxpayer identification number (ITIN). Corrected tax return Check only “Single” marital status on line 3 (regardless of your actual marital status). Corrected tax return Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. Corrected tax return S. Corrected tax return national. Corrected tax return Write “Nonresident Alien” or “NRA” on the dotted line on line 6. Corrected tax return You can request additional withholding on line 6 at your option. Corrected tax return Do not claim “Exempt” withholding status on line 7. Corrected tax return A U. Corrected tax return S. Corrected tax return national is an individual who, although not a U. Corrected tax return S. Corrected tax return citizen, owes his or her allegiance to the United States. Corrected tax return U. Corrected tax return S. Corrected tax return nationals include American Samoans, and Northern Mariana Islanders who chose to become U. Corrected tax return S. Corrected tax return nationals instead of U. Corrected tax return S. Corrected tax return citizens. Corrected tax return See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. Corrected tax return S. Corrected tax return source scholarship or fellowship grant that is not a payment for services. Corrected tax return Students and business apprentices from India. Corrected tax return   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. Corrected tax return You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. Corrected tax return S. Corrected tax return taxpayer's 2013 return. Corrected tax return You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Corrected tax return S. Corrected tax return citizens. Corrected tax return Household employees. Corrected tax return   If you work as a household employee, your employer does not have to withhold income tax. Corrected tax return However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. Corrected tax return The agreement goes into effect when your employer accepts the agreement by beginning the withholding. Corrected tax return You or your employer may end the agreement by letting the other know in writing. Corrected tax return Agricultural workers. Corrected tax return   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. Corrected tax return However, your employer will withhold income tax only if you and your employer agree to withhold. Corrected tax return In that case, you must provide your employer with a properly completed Form W-4. Corrected tax return You can find more information about not having tax withheld at www. Corrected tax return irs. Corrected tax return gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Corrected tax return Wages Exempt From Withholding Wages that are exempt from U. Corrected tax return S. Corrected tax return income tax under an income tax treaty are generally exempt from withholding. Corrected tax return For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. Corrected tax return Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. Corrected tax return S. Corrected tax return Virgin Islands may be exempt from withholding. Corrected tax return The following paragraphs explain these exemptions. Corrected tax return Residents of Canada or Mexico engaged in transportation-related employment. Corrected tax return   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. Corrected tax return These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. Corrected tax return    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. Corrected tax return   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. Corrected tax return S. Corrected tax return citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. Corrected tax return   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. Corrected tax return Residents of American Samoa and Puerto Rico. Corrected tax return   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. Corrected tax return Residents of the U. Corrected tax return S. Corrected tax return Virgin Islands. Corrected tax return   Nonresident aliens who are bona fide residents of the U. Corrected tax return S Virgin Islands are not subject to withholding of U. Corrected tax return S. Corrected tax return tax on income earned while temporarily employed in the United States. Corrected tax return This is because those persons pay their income tax to the U. Corrected tax return S. Corrected tax return Virgin Islands. Corrected tax return To avoid having tax withheld on income earned in the United States, bona fide residents of the U. Corrected tax return S. Corrected tax return Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. Corrected tax return S. Corrected tax return Virgin Islands and expect to pay tax on all income to the U. Corrected tax return S. Corrected tax return Virgin Islands. Corrected tax return Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. Corrected tax return You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. Corrected tax return You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. Corrected tax return Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. Corrected tax return S. Corrected tax return income tax. Corrected tax return Include them in taxable income. Corrected tax return In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. Corrected tax return Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. Corrected tax return However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. Corrected tax return An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. Corrected tax return You must agree to timely file an income tax return for the current tax year. Corrected tax return Central withholding agreements. Corrected tax return   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. Corrected tax return Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. Corrected tax return   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. Corrected tax return Either you or your authorized representative can file the form. Corrected tax return It should be sent to the IRS at least 45 days before the tour begins or the event occurs. Corrected tax return Exceptions will be considered on a case by case basis. Corrected tax return   For more information on the CWA program, go to www. Corrected tax return irs. Corrected tax return gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. Corrected tax return Final payment exemption. Corrected tax return   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. Corrected tax return This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. Corrected tax return To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. Corrected tax return A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. Corrected tax return Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Corrected tax return A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. Corrected tax return This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Corrected tax return A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. Corrected tax return The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. Corrected tax return The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. Corrected tax return Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. Corrected tax return A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. Corrected tax return   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. Corrected tax return Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. Corrected tax return   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. Corrected tax return You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. Corrected tax return Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). Corrected tax return To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. Corrected tax return S. Corrected tax return national and are not a resident of Canada, Mexico, or South Korea. Corrected tax return For purposes of 30% withholding, the exemption is prorated at $10. Corrected tax return 82 a day in 2014 for the period that labor or personal services are performed in the United States. Corrected tax return To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. Corrected tax return Example. Corrected tax return Eric Johannsen, who is a resident of Country X worked under a contract with a U. Corrected tax return S. Corrected tax return firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. Corrected tax return He earned $6,000 for the services performed (not considered wages) in the United States. Corrected tax return Eric is married and has three dependent children. Corrected tax return His wife is not employed and has no income subject to U. Corrected tax return S. Corrected tax return tax. Corrected tax return The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. Corrected tax return 82), and withholding at 30% is applied against the balance. Corrected tax return Thus, $1,475. Corrected tax return 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). Corrected tax return U. Corrected tax return S. Corrected tax return nationals or residents of Canada, Mexico, or South Korea. Corrected tax return   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. Corrected tax return However, if you are a U. Corrected tax return S. Corrected tax return national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. Corrected tax return S. Corrected tax return citizens. Corrected tax return For the 30% (or lower treaty) rate withholding, you can take $10. Corrected tax return 82 per day for each allowable exemption in 2014. Corrected tax return If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. Corrected tax return However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . Corrected tax return Students and business apprentices from India. Corrected tax return   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Corrected tax return S. Corrected tax return taxpayer's 2014 return. Corrected tax return You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Corrected tax return S. Corrected tax return citizens. Corrected tax return For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. Corrected tax return 82 per day for each allowable exemption in 2014. Corrected tax return Refund of Taxes Withheld in Error Multi-level marketing. Corrected tax return   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. Corrected tax return S. Corrected tax return income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. Corrected tax return You must also attach to the U. Corrected tax return S. Corrected tax return income tax return or claim for refund supporting information that includes, but is not limited to, the following items. Corrected tax return A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. Corrected tax return A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. Corrected tax return S. Corrected tax return taxation. Corrected tax return A statement listing all the dates you entered and left the United States during the taxable year. Corrected tax return If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. Corrected tax return A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. Corrected tax return A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. Corrected tax return Any further relevant document or record supporting your claim that the taxes were withheld in error. Corrected tax return Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. Corrected tax return It also includes 85% of social security benefits paid to nonresident aliens. Corrected tax return Refund of taxes withheld in error on social security benefits paid to resident aliens. Corrected tax return   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. Corrected tax return For U. Corrected tax return S. Corrected tax return income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Corrected tax return See Green Card Test in chapter 1. Corrected tax return If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Corrected tax return SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Corrected tax return If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Corrected tax return You must also attach the following to your Form 1040 or 1040A. Corrected tax return A copy of Form SSA-1042S, Social Security Benefit Statement. Corrected tax return A copy of the “green card. Corrected tax return ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. Corrected tax return S. Corrected tax return lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Corrected tax return I am filing a U. Corrected tax return S. Corrected tax return income tax return for the tax year as a resident alien reporting all of my worldwide income. Corrected tax return I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. Corrected tax return Other income not subject to withholding of 30% (or lower treaty) rate. Corrected tax return   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. Corrected tax return Income (other than compensation) that is effectively connected with your U. Corrected tax return S. Corrected tax return trade or business. Corrected tax return Income from real property that you choose to treat as effectively connected with a U. Corrected tax return S. Corrected tax return trade or business. Corrected tax return See Income From Real Property in chapter 4 for details about this choice. Corrected tax return   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. Corrected tax return Tax Withheld on Partnership Income If you are a foreign partner in a U. Corrected tax return S. Corrected tax return or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. Corrected tax return You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. Corrected tax return Generally, you must use Form 8804-C for this purpose. Corrected tax return See the Instructions for Form 8804-C for more information. Corrected tax return The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. Corrected tax return 6% for 2014). Corrected tax return However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. Corrected tax return Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. Corrected tax return Claim the tax withheld as a credit on your 2014 Form 1040NR. Corrected tax return The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Corrected tax return A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. Corrected tax return In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. Corrected tax return S. Corrected tax return Source Income Subject to Withholding. Corrected tax return Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. Corrected tax return See chapter 3. Corrected tax return If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. Corrected tax return S. Corrected tax return source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. Corrected tax return However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. Corrected tax return Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. Corrected tax return Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). Corrected tax return Use the following instructions instead of the Form W-4 instructions to complete the worksheet. Corrected tax return Line A. Corrected tax return   Enter the total of the following amounts on line A. Corrected tax return Personal exemption. Corrected tax return   Include the prorated part of your allowable personal exemption. Corrected tax return Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. Corrected tax return 82). Corrected tax return Expenses. Corrected tax return   Include expenses that will be deductible on your return. Corrected tax return These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. Corrected tax return They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. Corrected tax return Nontaxable grant or scholarship. Corrected tax return   Include the part of your grant or scholarship that is not taxable under U. Corrected tax return S. Corrected tax return law or under a tax treaty. Corrected tax return Line B. Corrected tax return   Enter -0- unless the following paragraph applies to you. Corrected tax return   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. Corrected tax return The standard deduction amount for 2013 is $6,100. Corrected tax return Lines C and D. Corrected tax return   Enter -0- on both lines unless the following paragraphs apply to you. Corrected tax return   If you are a resident of Canada, Mexico, South Korea, or a U. Corrected tax return S. Corrected tax return national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. Corrected tax return   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Corrected tax return S. Corrected tax return taxpayer's 2014 return. Corrected tax return You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Corrected tax return S. Corrected tax return citizens. Corrected tax return   Enter any additional amount for your spouse on line C. Corrected tax return Enter any additional amount for your dependents on line D. Corrected tax return Lines E, F, and G. Corrected tax return   No entries should be made on lines E, F, and G. Corrected tax return Line H. Corrected tax return   Add the amounts on lines A through D and enter the total on line H. Corrected tax return Form W-4. Corrected tax return   Complete lines 1 through 4 of Form W-4. Corrected tax return Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. Corrected tax return   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. Corrected tax return S. Corrected tax return income tax return to be allowed the exemptions and deductions you claimed on that form. Corrected tax return If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. Corrected tax return S. Corrected tax return income tax return for the previous year. Corrected tax return If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. Corrected tax return S. Corrected tax return income tax return when required. Corrected tax return After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. Corrected tax return The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. Corrected tax return You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. Corrected tax return Use this form to prepare your annual U. Corrected tax return S. Corrected tax return income tax return. Corrected tax return Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. Corrected tax return Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. Corrected tax return File Form W-8BEN for income that is not personal services income. Corrected tax return File Form 8233 for personal services income as discussed next. Corrected tax return Employees and independent contractors. Corrected tax return   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. Corrected tax return   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. Corrected tax return This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. Corrected tax return In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. Corrected tax return Students, teachers, and researchers. Corrected tax return   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. Corrected tax return For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. Corrected tax return   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. Corrected tax return Special events and promotions. Corrected tax return   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. Corrected tax return Form 13930 is used to request a reduction in withholding. Corrected tax return Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. Corrected tax return One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. Corrected tax return You will be required to pay U. Corrected tax return S. Corrected tax return tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. Corrected tax return For more details on treaty provisions that apply to compensation, see Publication 901. Corrected tax return Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. Corrected tax return S. Corrected tax return real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. Corrected tax return A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. Corrected tax return S. Corrected tax return real property interest by the shareholder is subject to withholding at 35%. Corrected tax return Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. Corrected tax return These rules are covered in Publication 515. Corrected tax return For information on the tax treatment of dispositions of U. Corrected tax return S. Corrected tax return real property interests, see Real Property Gain or Loss in chapter 4. Corrected tax return If you are a partner in a domestic partnership, and the partnership disposes of a U. Corrected tax return S. Corrected tax return real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. Corrected tax return Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. Corrected tax return S. Corrected tax return Source Income Subject to Withholding (in the case of a publicly traded partnership). Corrected tax return Withholding is not required in the following situations. Corrected tax return The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. Corrected tax return The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. Corrected tax return However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. Corrected tax return The property disposed of is an interest in a U. Corrected tax return S. Corrected tax return corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. Corrected tax return S. Corrected tax return real property interest. Corrected tax return You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. Corrected tax return S. Corrected tax return taxpayer identification number, and home address. Corrected tax return You can give the certification to a qualified substitute. Corrected tax return The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. Corrected tax return For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. Corrected tax return The buyer receives a withholding certificate from the Internal Revenue Service. Corrected tax return You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. Corrected tax return S. Corrected tax return tax treaty. Corrected tax return The buyer must file a copy of the notice with the Ogden Service Center, P. Corrected tax return O. Corrected tax return Box 409101, Ogden, UT 84409. Corrected tax return You must verify the notice as true and sign it under penalties of perjury. Corrected tax return The notice must contain the following information. Corrected tax return A statement that the notice is a notice of nonrecognition under regulation section 1. Corrected tax return 1445-2(d)(2). Corrected tax return Your name, taxpayer identification number, and home address. Corrected tax return A statement that you are not required to recognize any gain or loss on the transfer. Corrected tax return A brief description of the transfer. Corrected tax return A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. Corrected tax return You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. Corrected tax return Instead, a withholding certificate (described next) must be obtained. Corrected tax return The amount you realize on the transfer of a U. Corrected tax return S. Corrected tax return real property interest is zero. Corrected tax return The property is acquired by the United States, a U. Corrected tax return S. Corrected tax return state or possession, a political subdivision, or the District of Columbia. Corrected tax return The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. Corrected tax return S. Corrected tax return real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. Corrected tax return For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. Corrected tax return See Wash sale under Real Property Gain or Loss in chapter 4. Corrected tax return The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. Corrected tax return This also applies to the qualified substitute's statement under (4). Corrected tax return Withholding certificates. Corrected tax return   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. Corrected tax return Either you or the buyer can request a withholding certificate. Corrected tax return   A withholding certificate can be issued due to any of the following. Corrected tax return The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. Corrected tax return All of your realized gain is exempt from U. Corrected tax return S. Corrected tax return tax. Corrected tax return You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. Corrected tax return   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. Corrected tax return Credit for tax withheld. Corrected tax return   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. Corrected tax return S. Corrected tax return Withholding Tax Return for Dispositions by Foreign Persons of U. Corrected tax return S. Corrected tax return Real Property Interests. Corrected tax return This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Corrected tax return S. Corrected tax return Real Property Interests. Corrected tax return Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). Corrected tax return You must file Copy B with your tax return to take credit for the tax withheld. Corrected tax return   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. Corrected tax return The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. Corrected tax return When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. Corrected tax return Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. Corrected tax return Your payments of these taxes contribute to your coverage under the U. Corrected tax return S. Corrected tax return social security system. Corrected tax return Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. Corrected tax return In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. Corrected tax return All taxable wages are subject to Medicare tax. Corrected tax return Your employer deducts these taxes from each wage payment. Corrected tax return Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. Corrected tax return You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. Corrected tax return 40. Corrected tax return Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. Corrected tax return If any one employer deducted more than $7,049. Corrected tax return 40, you cannot claim a credit for that amount. Corrected tax return Ask your employer to refund the excess. Corrected tax return If your employer does not refund the excess, you can file a claim for refund using Form 843. Corrected tax return In general, U. Corrected tax return S. Corrected tax return social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. Corrected tax return In limited situations, these taxes apply to wages for services performed outside the United States. Corrected tax return Your employer should be able to tell you if social security and Medicare taxes apply to your wages. Corrected tax return You cannot make voluntary payments if no taxes are due. Corrected tax return Additional Medicare Tax. Corrected tax return   Beginning in 2013, in addition to the Medicare tax, a 0. Corrected tax return 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. Corrected tax return   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. Corrected tax return Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Corrected tax return   Your employer is responsible for withholding the 0. Corrected tax return 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. Corrected tax return If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. Corrected tax return   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Corrected tax return    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Corrected tax return For more information on Additional Medicare Tax, go to IRS. Corrected tax return gov and enter “Additional Medicare Tax” in the search box. Corrected tax return   Self-employed individuals may also be required to pay Additional Medicare Tax. Corrected tax return See Self-Employment Tax , later. Corrected tax return Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. Corrected tax return This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. Corrected tax return These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. Corrected tax return Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. Corrected tax return Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. Corrected tax return Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. Corrected tax return In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. Corrected tax return Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. Corrected tax return Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. Corrected tax return The U. Corrected tax return S. Corrected tax return Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. Corrected tax return S. Corrected tax return resident. Corrected tax return On-campus work means work performed on the school's premises. Corrected tax return On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. Corrected tax return On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. Corrected tax return Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. Corrected tax return If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Corrected tax return Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. Corrected tax return Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. Corrected tax return If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Corrected tax return Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. Corrected tax return The employer must be the petitioner through whom the alien obtained the “Q” visa. Corrected tax return Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. Corrected tax return Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Corrected tax return If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Corrected tax return Attach the following items to Form 843. Corrected tax return A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. Corrected tax return A copy of your visa. Corrected tax return Form I-94 (or other documentation showing your dates of arrival or departure). Corrected tax return If you have an F-1 visa, documentation showing permission to work in the U. Corrected tax return S. Corrected tax return If you have a J-1 visa, documentation showing permission to work in the U. Corrected tax return S. Corrected tax return If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. Corrected tax return S. Corrected tax return A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. Corrected tax return If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. Corrected tax return If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. Corrected tax return File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. Corrected tax return Do not use Form 843 to request a refund of Additional Medicare Tax. Corrected tax return If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. Corrected tax return If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. Corrected tax return S. Corrected tax return Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. Corrected tax return See the Instructions for Form 1040X. Corrected tax return Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. Corrected tax return You can find more information about not having tax withheld at www. Corrected tax return irs. Corrected tax return gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Corrected tax return Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. Corrected tax return Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. Corrected tax return S. Corrected tax return social security system. Corrected tax return Residents of the U. Corrected tax return S. Corrected tax return Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. Corrected tax return S. Corrected tax return residents for this purpose and are subject to the self-employment tax. Corrected tax return Resident aliens must pay self-employment tax under the same rules that apply to U. Corrected tax return S. Corrected tax return citizens. Corrected tax return However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. Corrected tax return Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. Corrected tax return Example. Corrected tax return Bill Jones is an author engaged in the business of writing books. Corrected tax return Bill had several books published in a foreign country while he was a citizen and resident of that country. Corrected tax return During 2013, Bill entered the United States as a resident alien. Corrected tax return After becoming a U. Corrected tax return S. Corrected tax return resident, he continued to receive royalties from his foreign publisher. Corrected tax return Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). Corrected tax return Bill's 2013 self-employment income includes the royalties received after he became a U. Corrected tax return S. Corrected tax return resident even though the books were published while he was a nonresident alien. Corrected tax return This royalty income is subject to self-employment tax. Corrected tax return Reporting self-employment tax. Corrected tax return   Use Schedule SE (Form 1040) to report and figure your self-employment tax. Corrected tax return Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. Corrected tax return Attach Schedule SE to Form 1040 or Form 1040NR. Corrected tax return Additional Medicare Tax. Corrected tax return   Self-employed individuals must pay a 0. Corrected tax return 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. Corrected tax return   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. Corrected tax return A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Corrected tax return   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Corrected tax return For more information on Additional Medicare Tax, go to IRS. Corrected tax return gov and enter “Additional Medicare Tax” in the search box. Corrected tax return Deduction for employer-equivalent portion of self-employment tax. Corrected tax return   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. Corrected tax return This deduction is figured on Schedule SE (Form 1040). Corrected tax return Note. Corrected tax return No portion of the Additional Medicare Tax is deductible for self-employment tax. Corrected tax return More information. Corrected tax return   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. Corrected tax return International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. Corrected tax return These agreements are commonly referred to as totalization agreements. Corrected tax return Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Corrected tax return The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. Corrected tax return Agreements are in effect with the following countries. Corrected tax return Australia. Corrected tax return Austria. Corrected tax return Belgium. Corrected tax return Canada. Corrected tax return Chile. Corrected tax return Czech Republic. Corrected tax return Denmark. Corrected tax return Finland. Corrected tax return France. Corrected tax return Germany. Corrected tax return Greece. Corrected tax return Ireland. Corrected tax return Italy. Corrected tax return Japan. Corrected tax return Korea, South. Corrected tax return Luxembourg. Corrected tax return The Netherlands. Corrected tax return Norway. Corrected tax return Poland. Corrected tax return Portugal. Corrected tax return Spain. Corrected tax return Sweden. Corrected tax return Switzerland. Corrected tax return The United Kingdom. Corrected tax return Agreements with other countries are expected to enter into force in the future. Corrected tax return Employees. Corrected tax return   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. Corrected tax return However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. Corrected tax return You can get more information on any agreement by contacting the U. Corrected tax return S. Corrected tax return Social Security Administration at the address given later. Corrected tax return If you have access to the Internet, you can get more information at www. Corrected tax return socialsecurity. Corrected tax return gov/international. Corrected tax return   To establish that your pay is subject only to foreign social security taxes and is exempt from U. Corrected tax return S. Corrected tax return social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. Corrected tax return This will usually be the same agency to which you or your employer pays your foreign social security taxes. Corrected tax return The foreign agency will be able to tell you what information is needed for them to issue the certificate. Corrected tax return Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. Corrected tax return S. Corrected tax return social security taxes. Corrected tax return Only wages paid on or after the effective date of the agreement can be exempt from U. Corrected tax return S. Corrected tax return social security taxes. Corrected tax return    Some of the countries with which the United States has agreements will not issue certificates of coverage. Corrected tax return In this case, either you or your employer should request a statement that your wages are not covered by the U. Corrected tax return S. Corrected tax return social security system. Corrected tax return Request the statement from the following address. Corrected tax return U. Corrected tax return S. Corrected tax return Social Security Administration Office of International Programs P. Corrected tax return O. Corrected tax return Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. Corrected tax return   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. Corrected tax return However, under some agreements, you may be exempt from U. Corrected tax return S. Corrected tax return self-employment tax if you temporarily transfer your business activity to or from the United States. Corrected tax return   If you believe that your self-employment income is subject only to U. Corrected tax return S. Corrected tax return self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. Corrected tax return S. Corrected tax return Social Security Administration at the address given earlier. Corrected tax return This certificate will establish your exemption from foreign social security taxes. Corrected tax return   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. Corrected tax return S. Corrected tax return self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. Corrected tax return If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. Corrected tax return S. Corrected tax return social security system. Corrected tax return Request it from the U. Corrected tax return S. Corrected tax return Social Security Administration at the address given earlier. Corrected tax return Attach a photocopy of either statement to Form 1040 each year you are exempt. Corrected tax return Also print “Exempt, see attached statement” on the line for self-employment tax. Corrected tax return Estimated Tax Form 1040-ES (NR) You may have income from which no U. Corrected tax return S. Corrected tax return income tax is withheld. Corrected tax return Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. Corrected tax return If so, you may have to pay estimated tax. Corrected tax return Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). Corrected tax return If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. Corrected tax return Item (2) does not apply if you did not file a 2013 return. Corrected tax return A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. Corrected tax return If you pay by check, make it payable to the "United States Treasury. Corrected tax return " How to estimate your tax for 2014. Corrected tax return   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. Corrected tax return If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. Corrected tax return Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. Corrected tax return Note. Corrected tax return If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). Corrected tax return When to pay estimated tax. Corrected tax return   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. Corrected tax return If you have wages subject to the same withholding rules that apply to U. Corrected tax return S. Corrected tax return citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. Corrected tax return If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. Corrected tax return   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. Corrected tax return 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. Corrected tax return 15, 2014 4th installment Jan. Corrected tax return 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. Corrected tax return    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. Corrected tax return Fiscal year. Corrected tax return   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. Corrected tax return If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. Corrected tax return Changes in income, deductions, or exemptions. Corrected tax return   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. Corrected tax return This can happen if you receive additional income or if any of your deductions are reduced or eliminated. Corrected tax return If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. Corrected tax return Amended estimated tax. Corrected tax return   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. Corrected tax return To do this, see the instructions for Form 1040-ES (NR) and Publication 505. Corrected tax return Penalty for failure to pay estimated income tax. Corrected tax return   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. Corrected tax return These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Corrected tax return Prev  Up  Next   Home   More Online Publications