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Filelate How To Get Tax Help Table of Contents You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Filelate By selecting the method that is best for you, you will have quick and easy access to tax help. Filelate Contacting your Taxpayer Advocate. Filelate   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Filelate   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Filelate While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Filelate   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Filelate Call the IRS at 1–800–829–1040. Filelate Call, write, or fax the Taxpayer Advocate office in your area. Filelate Call 1–800–829–4059 if you are a TTY/TDD user. Filelate   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Filelate Free tax services. Filelate   To find out what services are available, get Publication 910, Guide to Free Tax Services. Filelate It contains a list of free tax publications and an index of tax topics. Filelate It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Filelate Personal computer. Filelate With your personal computer and modem, you can access the IRS on the Internet at www. Filelate irs. Filelate gov. Filelate While visiting our web site, you can: Find answers to questions you may have. Filelate Download forms and publications or search for forms and publications by topic or keyword. Filelate View forms that may be filled in electronically, print the completed form, and then save the form for recordkeeping. Filelate View Internal Revenue Bulletins published in the last few years. Filelate Search regulations and the Internal Revenue Code. Filelate Receive our electronic newsletters on hot tax issues and news. Filelate Get information on starting and operating a small business. Filelate You can also reach us with your computer using File Transfer Protocol at ftp. Filelate irs. Filelate gov. Filelate TaxFax Service. Filelate Using the phone attached to your fax machine, you can receive forms and instructions by calling 703–368–9694. Filelate Follow the directions from the prompts. Filelate When you order forms, enter the catalog number for the form you need. Filelate The items you request will be faxed to you. Filelate For help with transmission problems, call the FedWorld Help Desk at 703–487–4608. Filelate Phone. Filelate Many services are available by phone. Filelate Ordering forms, instructions, and publications. Filelate Call 1–800–829–3676 to order current and prior year forms, instructions, and publications. Filelate Asking tax questions. Filelate Call the IRS with your tax questions at 1–800–829–1040. Filelate TTY/TDD equipment. Filelate If you have access to TTY/TDD equipment, call 1–800–829–4059 to ask tax questions or to order forms and publications. Filelate TeleTax topics. Filelate Call 1–800–829–4477 to listen to pre-recorded messages covering various tax topics. Filelate Evaluating the quality of our telephone services. Filelate To ensure that IRS representatives give accurate, courteous, and professional answers, we evaluate the quality of our telephone services in several ways. Filelate A second IRS representative sometimes monitors live telephone calls. Filelate That person only evaluates the IRS assistor and does not keep a record of any taxpayer's name or tax identification number. Filelate We sometimes record telephone calls to evaluate IRS assistors objectively. Filelate We hold these recordings no longer than one week and use them only to measure the quality of assistance. Filelate We value our customers' opinions. Filelate Throughout this year, we will be surveying our customers for their opinions on our service. Filelate Walk-in. Filelate You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Filelate Some IRS offices, libraries, grocery stores, copy centers, city and county governments, credit unions, and office supply stores have an extensive collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Filelate Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Filelate Mail. Filelate You can send your order for forms, instructions, and publications to the Distribution Center nearest to you and receive a response within 10 workdays after your request is received. Filelate Find the address that applies to your part of the country. Filelate Western part of U. Filelate S. Filelate : Western Area Distribution Center Rancho Cordova, CA 95743–0001 Central part of U. Filelate S. Filelate : Central Area Distribution Center P. Filelate O. Filelate Box 8903 Bloomington, IL 61702–8903 Eastern part of U. Filelate S. Filelate and foreign addresses: Eastern Area Distribution Center P. Filelate O. Filelate Box 85074 Richmond, VA 23261–5074 CD-ROM. Filelate You can order IRS Publication 1796, Federal Tax Products on CD-ROM, and obtain: Current tax forms, instructions, and publications. Filelate Prior-year tax forms and instructions. Filelate Popular tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping. Filelate Internal Revenue Bulletins. Filelate The CD-ROM can be purchased from National Technical Information Service (NTIS) by calling 1–877–233–6767 or on the Internet at www. Filelate irs. Filelate gov. Filelate The first release is available in mid-December and the final release is available in late January. Filelate IRS Publication 3207, Small Business Resource Guide, is an interactive CD-ROM that contains information important to small businesses. Filelate It is available in mid-February. Filelate You can get a free copy by calling 1–800–829–3676 or visiting the IRS web site at www. Filelate irs. Filelate gov. Filelate Prev  Up  Next   Home   More Online Publications
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Understanding your CP12M Notice

We made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Review the notice, and compare our changes to the information on your tax return.
  • If you agree with the changes we made, do nothing; you should receive a refund check in 4-6 weeks, as long as you don't owe other tax or debts we're required to collect.
  • If you don't agree, call 1-800-829-8374 to review your account or contact us by mail. Include any correspondence or documentation.

You may want to...

  • Download copies of the following materials (if they weren't included with your notice):
  • Call 1-800-TAX-FORM (1-800-829-3676) to have forms and publications mailed to you.

Answers to Common Questions

What is the Making Work Pay Credit?
The Making Work Pay Credit is a refundable tax credit that can go up to $400 for individuals and to $800 for married taxpayers.

How can taxpayers get this credit?
Even if your federal income tax withholding was reduced because of the credit, you must complete a Schedule M, Making Work Pay, and claim the credit on your income tax return to benefit from it.

What happens if I don't receive a paycheck from an employer?
You can claim the credit on your 2010 income tax return by filing a Schedule M, Making Work Pay.

What is the Government Retiree Credit?
Taxpayers can take a credit of $250 ($500 if married and both spouses qualify) if you or your spouse received a pension or annuity payment in 2010 for service performed for the U.S. Government or any U.S. state or local government, and the service was not covered by social security. But you cannot take the credit if you and your spouse both received a $250 economic recovery payment.


Tips for next year

  • In 2011, when you file your taxes for tax year 2010, complete Schedule M to see if you are eligible for the Making Work Pay and Government Retiree Credits.
  • Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.
Page Last Reviewed or Updated: 19-Feb-2014

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Filelate 1. Filelate   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. Filelate Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. Filelate S. Filelate Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. Filelate S. Filelate Individual Income Tax Return 2350 Application for Extension of Time To File U. Filelate S. Filelate Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. Filelate S. Filelate Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. Filelate Filing Requirements If you are a U. Filelate S. Filelate citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Filelate Your income, filing status, and age generally determine whether you must file an income tax return. Filelate Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. Filelate Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. Filelate Gross income. Filelate   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Filelate   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. Filelate If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. Filelate Self-employed individuals. Filelate   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Filelate Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. Filelate 65 or older. Filelate   You are considered to be age 65 on the day before your 65th birthday. Filelate For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Filelate Residents of U. Filelate S. Filelate possessions. Filelate   If you are (or were) a bona fide resident of a U. Filelate S. Filelate possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. Filelate S. Filelate Possession. Filelate See the instructions for the form for more information. Filelate When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. Filelate If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. Filelate In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. Filelate When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Filelate — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Filelate A tax return delivered by the U. Filelate S. Filelate mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. Filelate See your Form 1040 or Form 1040A instructions for a list of designated delivery services. Filelate Foreign wire transfers. Filelate   If you have a U. Filelate S. Filelate bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). Filelate If you do not have a U. Filelate S. Filelate bank account, ask if your financial institution has a U. Filelate S. Filelate affiliate that can help you make same-day wire transfers. Filelate   For more information, visit www. Filelate eftps. Filelate gov. Filelate Extensions You can get an extension of time to file your return. Filelate In some circumstances, you also can get an extension of time to file and pay any tax due. Filelate However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Filelate This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. Filelate If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. Filelate Automatic 2-month extension. Filelate   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. Filelate S. Filelate citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Filelate   If you use a calendar year, the regular due date of your return is April 15. Filelate Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. Filelate Married taxpayers. Filelate   If you file a joint return, either you or your spouse can qualify for the automatic extension. Filelate If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. Filelate How to get the extension. Filelate   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. Filelate Automatic 6-month extension. Filelate   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). Filelate To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). Filelate For more information about filing electronically, see E-file options , later. Filelate   The form must show your properly estimated tax liability based on the information available to you. Filelate    You may not be eligible. Filelate You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. Filelate E-file options. Filelate    You can use e-file to get an extension of time to file. Filelate You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. Filelate   First, complete Form 4868 to use as a worksheet. Filelate If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Filelate    Then, do one of the following. Filelate E-file Form 4868. Filelate You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Filelate You will need to provide certain information from your tax return for 2012. Filelate If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. Filelate If you e-file Form 4868, do not also send a paper Form 4868. Filelate E-file and pay by credit or debit card. Filelate You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. Filelate You can do this by phone or over the Internet. Filelate If you do this, you do not file Form 4868. Filelate For more information, see the instructions for your tax return. Filelate When to file. Filelate   Generally, you must request the 6-month extension by the regular due date of your return. Filelate Previous 2-month extension. Filelate   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. Filelate The 2-month period and the 6-month period start at the same time. Filelate You have to request the additional 4 months by the new due date allowed by the 2-month extension. Filelate   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. Filelate You must make an accurate estimate of your tax based on the information available to you. Filelate If you find you cannot pay the full amount due with Form 4868, you can still get the extension. Filelate You will owe interest on the unpaid amount from the original due date of the return. Filelate   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. Filelate Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. Filelate In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). Filelate Additional extension of time for taxpayers out of the country. Filelate   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Filelate   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Filelate Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. Filelate   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. Filelate Extension of time to meet tests. Filelate   You generally cannot get an extension of more than 6 months. Filelate However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. Filelate   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. Filelate The tests, the exclusions, and the deduction are explained in chapter 4. Filelate   You should request an extension if all three of the following apply. Filelate You are a U. Filelate S. Filelate citizen or resident alien. Filelate You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. Filelate Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. Filelate   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. Filelate However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. Filelate How to get an extension. Filelate   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. Filelate Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Filelate What if tests are not met. Filelate   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). Filelate    You should make any request for an extension early, so that if it is denied you still can file your return on time. Filelate Otherwise, if you file late and additional tax is due, you may be subject to a penalty. Filelate Return filed before test is met. Filelate   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. Filelate S. Filelate and foreign sources and pay the tax on that income. Filelate If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. Filelate Foreign Currency You must express the amounts you report on your U. Filelate S. Filelate tax return in U. Filelate S. Filelate dollars. Filelate If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Filelate S. Filelate dollars. Filelate How you do this depends on your functional currency. Filelate Your functional currency generally is the U. Filelate S. Filelate dollar unless you are required to use the currency of a foreign country. Filelate You must make all federal income tax determinations in your functional currency. Filelate The U. Filelate S. Filelate dollar is the functional currency for all taxpayers except some qualified business units (QBUs). Filelate A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. Filelate Even if you have a QBU, your functional currency is the dollar if any of the following apply. Filelate You conduct the business in U. Filelate S. Filelate dollars. Filelate The principal place of business is located in the United States. Filelate You choose to or are required to use the U. Filelate S. Filelate dollar as your functional currency. Filelate The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Filelate Make all income tax determinations in your functional currency. Filelate If your functional currency is the U. Filelate S. Filelate dollar, you must immediately translate into U. Filelate S. Filelate dollars all items of income, expense, etc. Filelate (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Filelate Use the exchange rate prevailing when you receive, pay, or accrue the item. Filelate If there is more than one exchange rate, use the one that most properly reflects your income. Filelate You can generally get exchange rates from banks and U. Filelate S. Filelate Embassies. Filelate If your functional currency is not the U. Filelate S. Filelate dollar, make all income tax determinations in your functional currency. Filelate At the end of the year, translate the results, such as income or loss, into U. Filelate S. Filelate dollars to report on your income tax return. Filelate Blocked Income You generally must report your foreign income in terms of U. Filelate S. Filelate dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. Filelate S. Filelate dollars. Filelate If, because of restrictions in a foreign country, your income is not readily convertible into U. Filelate S. Filelate dollars or into other money or property that is readily convertible into U. Filelate S. Filelate dollars, your income is “blocked” or “deferrable” income. Filelate You can report this income in one of two ways: Report the income and pay your federal income tax with U. Filelate S. Filelate dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. Filelate If you choose to postpone the reporting of the income, you must file an information return with your tax return. Filelate For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. Filelate Rul. Filelate 74-351. Filelate ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. Filelate You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. Filelate You must report your income on your information return using the foreign currency in which you received that income. Filelate If you have blocked income from more than one foreign country, include a separate information return for each country. Filelate Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. Filelate S. Filelate dollars or into other money or property that is convertible into U. Filelate S. Filelate currency. Filelate Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. Filelate If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. Filelate If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. Filelate If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. Filelate To apply for permission, file Form 3115, Application for Change in Accounting Method. Filelate You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. Filelate See the instructions for Form 3115 for information on changing your accounting method. Filelate Fulbright Grant All income must be reported in U. Filelate S. Filelate dollars. Filelate In most cases, the tax also must be paid in U. Filelate S. Filelate dollars. Filelate If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. Filelate S. Filelate tax that is based on the blocked income. Filelate Paying U. Filelate S. Filelate tax in foreign currency. Filelate   To qualify for this method of payment, you must prepare a statement that shows the following information. Filelate You were a Fulbright grantee and were paid in nonconvertible foreign currency. Filelate The total grant you received during the year and the amount you received in nonconvertible foreign currency. Filelate At least 70% of the grant was paid in nonconvertible foreign currency. Filelate The statement must be certified by the U. Filelate S. Filelate educational foundation or commission paying the grant or other person having control of grant payments to you. Filelate   You should prepare at least two copies of this statement. Filelate Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. Filelate Figuring actual tax. Filelate   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. Filelate If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. Filelate   Adjusted gross income that is blocked income × Total U. Filelate S. Filelate tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. Filelate A copy of the certified statement discussed earlier. Filelate A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. Filelate S. Filelate dollars. Filelate The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. Filelate Figuring estimated tax on nonconvertible foreign currency. Filelate   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. Filelate   Adjusted gross income that is blocked income × Total estimated U. Filelate S. Filelate tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. Filelate Deposit of foreign currency with disbursing officer. Filelate   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. Filelate Estimated tax installments. Filelate   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. Filelate See Estimated Tax , later. Filelate Deposit receipt. Filelate   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. Filelate The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. Filelate S. Filelate dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. Filelate Keep the copy for your records. Filelate Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. Filelate IRS e-file offers accurate, safe, and fast alternatives to filing on paper. Filelate IRS computers quickly and automatically check for errors or other missing information. Filelate Even returns with a foreign address can be e-filed! How to e-file. Filelate   There are three ways you can e-file. Filelate Use your personal computer. Filelate Use a volunteer. Filelate Many programs offering free tax help can e-file your return. Filelate Use a tax professional. Filelate Most tax professionals can e-file your return. Filelate These methods are explained in detail in the instructions for your tax return. Filelate Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. Filelate You claim the foreign earned income exclusion. Filelate You claim the foreign housing exclusion or deduction. Filelate You live in a foreign country. Filelate Instead, use one of the following special addresses. Filelate If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. Filelate O. Filelate Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. Filelate However, you should not file with the addresses listed above if you are a bona fide resident of the U. Filelate S. Filelate Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. Filelate Resident of U. Filelate S. Filelate Virgin Islands (USVI). Filelate   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. Filelate S. Filelate return. Filelate However, you must file a return with the USVI. Filelate    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Filelate Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. Filelate   If you are a U. Filelate S. Filelate citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. Filelate File the original return with the United States and file a signed copy of the U. Filelate S. Filelate return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. Filelate   You must complete Form 8689, Allocation of Individual Income Tax to the U. Filelate S. Filelate Virgin Islands, and attach a copy to both your U. Filelate S. Filelate return and your USVI return. Filelate You should file your U. Filelate S. Filelate return with the address listed under Where To File. Filelate   See Publication 570, Tax Guide for Individuals With Income From U. Filelate S. Filelate Possessions, for information about filing Virgin Islands returns. Filelate Resident of Guam. Filelate   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. Filelate    Send your return to the:     Department of Revenue and Taxation Government of Guam P. Filelate O. Filelate Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. Filelate S. Filelate citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. Filelate Send your return to the address listed under Where To File. Filelate   See Publication 570 for information about filing Guam returns. Filelate Resident of the Commonwealth of the Northern Mariana Islands. Filelate   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. Filelate    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Filelate O. Filelate Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. Filelate S. Filelate citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. Filelate Send your return to the address listed under Where To File. Filelate   See Publication 570 for information about filing Northern Mariana Islands returns. Filelate Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Filelate S. Filelate citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. Filelate S. Filelate resident. Filelate This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. Filelate If you make this choice, the following two rules apply. Filelate You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. Filelate You must file a joint income tax return for the year you make the choice. Filelate This means that neither of you can claim under any tax treaty not to be a U. Filelate S. Filelate resident for a tax year for which the choice is in effect. Filelate You can file joint or separate returns in years after the year in which you make the choice. Filelate Example 1. Filelate Pat Smith, a U. Filelate S. Filelate citizen, is married to Norman, a nonresident alien. Filelate Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Filelate Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. Filelate Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. Filelate Example 2. Filelate When Bob and Sharon Williams got married, both were nonresident aliens. Filelate In June of last year, Bob became a resident alien and remained a resident for the rest of the year. Filelate Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. Filelate Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. Filelate Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. Filelate If you do not choose to treat your nonresident alien spouse as a U. Filelate S. Filelate resident, you may be able to use head of household filing status. Filelate To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. Filelate For more information, see Publication 501. Filelate Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. Filelate S. Filelate resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). Filelate To get an SSN for a nonresident alien spouse, apply at an office of the U. Filelate S. Filelate Social Security Administration (SSA) or U. Filelate S. Filelate consulate. Filelate You must complete Form SS-5, Application for a Social Security Card, available at www. Filelate socialsecurity. Filelate gov or by calling 1-800-772-1213. Filelate You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. Filelate If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. Filelate How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Filelate It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. Filelate S. Filelate citizen or resident alien on the last day of your tax year and that you choose to be treated as U. Filelate S. Filelate residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. Filelate (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Filelate ) You generally make this choice when you file your joint return. Filelate However, you also can make the choice by filing a joint amended return on Form 1040X. Filelate Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. Filelate If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. Filelate You generally must file the amended joint return within 3 years from the date you filed your original U. Filelate S. Filelate income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Filelate Table 1–1. Filelate Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. Filelate   • The revocation must be made by the due date for filing the tax return for that tax year. Filelate   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Filelate The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. Filelate     • The name and address of any person who is revoking the choice for a deceased spouse. Filelate     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Filelate   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. Filelate Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. Filelate   • If the surviving spouse is a U. Filelate S. Filelate citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Filelate   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Filelate Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. Filelate Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Filelate Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. Filelate S. Filelate citizen or resident alien at any time during the later tax year. Filelate Example. Filelate Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Filelate They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. Filelate On January 10, 2012, Dick became a nonresident alien. Filelate Judy had remained a nonresident alien. Filelate Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. Filelate Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. Filelate For 2013, both are treated as nonresident aliens. Filelate If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. Filelate Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. Filelate If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. Filelate Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. Filelate S. Filelate citizen or resident abroad as for a taxpayer in the United States. Filelate For current instructions on making estimated tax payments, see Form 1040-ES. Filelate If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Filelate Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Filelate (The return must cover all 12 months. Filelate ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). Filelate See Publication 505 for more information. Filelate The first installment of estimated tax is due on April 15, 2014. Filelate Foreign earned income exclusion. Filelate   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. Filelate In addition, you can reduce your income by your estimated foreign housing deduction. Filelate However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. Filelate If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. Filelate   For more information about figuring your estimated tax, see Publication 505. Filelate Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. Filelate 1). Filelate   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. Filelate 1. Filelate Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). Filelate See the filing instructions at www. Filelate bsaefiling. Filelate fincen. Filelate treas. Filelate gov/main. Filelate html. Filelate   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. Filelate You do not need to file the report if the assets are with a U. Filelate S. Filelate military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. Filelate   More information about the filing of Form 114 can be found in the instructions for the form. Filelate FinCEN Form 105. Filelate   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. Filelate Certain recipients of currency or monetary instruments also must file Form 105. Filelate   More information about the filing of Form 105 can be found in the instructions on the back of the form. Filelate Form 8938. Filelate   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). Filelate The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Filelate Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Filelate S. Filelate person. Filelate   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Filelate   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Filelate Prev  Up  Next   Home   More Online Publications