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Filing Past Taxes

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Filing Past Taxes

Filing past taxes Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. Filing past taxes irs. Filing past taxes gov/pub596. Filing past taxes What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. Filing past taxes A tax credit usually means more money in your pocket. Filing past taxes It reduces the amount of tax you owe. Filing past taxes The EIC may also give you a refund. Filing past taxes Can I Claim the EIC? To claim the EIC, you must meet certain rules. Filing past taxes These rules are summarized in Table 1. Filing past taxes Table 1. Filing past taxes Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Filing past taxes Second, you must meet all the rules in one of these columns, whichever applies. Filing past taxes Third, you must meet the rule in this column. Filing past taxes Chapter 1. Filing past taxes  Rules for Everyone Chapter 2. Filing past taxes  Rules If You Have a Qualifying Child Chapter 3. Filing past taxes  Rules If You Do Not Have a Qualifying Child Chapter 4. Filing past taxes  Figuring and Claiming the EIC 1. Filing past taxes Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Filing past taxes 2. Filing past taxes You must have a valid social security number. Filing past taxes   3. Filing past taxes Your filing status cannot be Married filing separately. Filing past taxes   4. Filing past taxes You must be a U. Filing past taxes S. Filing past taxes citizen or resident alien all year. Filing past taxes   5. Filing past taxes You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Filing past taxes   6. Filing past taxes Your investment income must be $3,300 or less. Filing past taxes    7. Filing past taxes You must have earned income. Filing past taxes 8. Filing past taxes Your child must meet the relationship, age, residency, and joint return tests. Filing past taxes   9. Filing past taxes Your qualifying child cannot be used by more than one person to claim the EIC. Filing past taxes   10. Filing past taxes You cannot be a qualifying child of another person. Filing past taxes 11. Filing past taxes You must be at least age 25 but under age 65. Filing past taxes    12. Filing past taxes You cannot be the dependent of another person. Filing past taxes   13. Filing past taxes You cannot be a qualifying child of another person. Filing past taxes   14. Filing past taxes You must have lived in the United States more than half of the year. Filing past taxes 15. Filing past taxes Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Filing past taxes Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. Filing past taxes You are one of those people if any of the following statements are true for 2013. Filing past taxes You are filing Schedule E (Form 1040). Filing past taxes You are reporting income from the rental of personal property not used in a trade or business. Filing past taxes You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). Filing past taxes You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. Filing past taxes If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. Filing past taxes You do not need this publication. Filing past taxes But you can read it to find out whether you can take the EIC and to learn more about the EIC. Filing past taxes Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). Filing past taxes See chapter 3. Filing past taxes How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. Filing past taxes To figure it yourself, you can complete a worksheet in the instructions for the form you file. Filing past taxes To find out how to have the IRS figure it for you, see chapter 4. Filing past taxes How Can I Quickly Locate Specific information? You can use the index to look up specific information. Filing past taxes In most cases, index entries will point you to headings, tables, or a worksheet. Filing past taxes Is There Help Online? Yes. Filing past taxes You can use the EITC Assistant at www. Filing past taxes irs. Filing past taxes gov/eitc to find out if you may be eligible for the credit. Filing past taxes The EITC Assistant is available in English and Spanish. Filing past taxes What's New for 2013 Earned income amount is more. Filing past taxes The maximum amount of income you can earn and still get the credit has increased. Filing past taxes You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Filing past taxes Your adjusted gross income also must be less than the amount in the above list that applies to you. Filing past taxes For details, see Rules 1 and 15. Filing past taxes Investment income amount is more. Filing past taxes The maximum amount of investment income you can have and still get the credit has increased to $3,300. Filing past taxes See Rule 6—Your Investment Income Must Be $3,300 or Less . Filing past taxes Reminders Increased EIC on certain joint returns. Filing past taxes . Filing past taxes  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Filing past taxes As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Filing past taxes When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Filing past taxes Earned income credit has no effect on certain welfare benefits. Filing past taxes  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Filing past taxes These programs include the following. Filing past taxes Temporary Assistance for Needy Families (TANF). Filing past taxes Medicaid. Filing past taxes Supplemental security income (SSI). Filing past taxes Supplemental Nutrition Assistance Program (food stamps). Filing past taxes Low-income housing. Filing past taxes In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Filing past taxes Check with your local benefit coordinator to find out if your refund will affect your benefits. Filing past taxes Do not overlook your state credit. Filing past taxes  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. Filing past taxes For a list of states that offer a state EIC, go to www. Filing past taxes irs. Filing past taxes gov/eitc. Filing past taxes EIC questioned by IRS. Filing past taxes  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Filing past taxes We will tell you what documents to send us. Filing past taxes These may include: birth certificates, school records, etc. Filing past taxes The process of establishing your eligibility will delay your refund. Filing past taxes Spanish version of Publication 596. Filing past taxes  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. Filing past taxes It is a Spanish translation of Publication 596. Filing past taxes See How To Get Tax Help to find out how to order this and other IRS forms and publications. Filing past taxes Photographs of missing children. Filing past taxes  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Filing past taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Filing past taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Filing past taxes Comments and suggestions. Filing past taxes  We welcome your comments about this publication and your suggestions for future editions. Filing past taxes You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. Filing past taxes NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Filing past taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Filing past taxes You can send your comments from www. Filing past taxes irs. Filing past taxes gov/formspubs/. Filing past taxes Click on “More Information” and then on “Comment on Tax Forms and Publications. Filing past taxes ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Filing past taxes Ordering forms and publications. Filing past taxes  Visit www. Filing past taxes irs. Filing past taxes gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Filing past taxes  Internal Revenue Service 1201 N. Filing past taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Filing past taxes  If you have a tax question, check the information available on IRS. Filing past taxes gov or call 1-800-829-1040. Filing past taxes We cannot answer tax questions sent to either of the above addresses. Filing past taxes Prev  Up  Next   Home   More Online Publications
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IRS Report on Avoiding Troubled Tax-Advantaged Bonds

The Internal Revenue Service office of Tax Exempt Bonds (TEB) released the report, Avoiding Troubled Tax-Advantaged Bonds. This report produced by the TEB Compliance Practice Research Team seeks to provide aid to issuers of tax-advantaged bonds municipal bonds. It identifies some considerations for issuers of such bonds and is TEB’s initial step toward producing public resource products that assist issuers in avoiding troubled transactions. For more than a decade, TEB observed some of the worst problems in the municipal industry and then witnessed the efforts taken (by leaders in state and local government, the professional communities that support them, and various regulatory bodies) to address them. Many of these complex compliance issues facing issuers of tax-advantaged municipal debt still exist.  

Publishing Avoiding Troubled Tax-Advantaged Bonds is a part of TEB’s continuing effort to provide practical steps and products that may be helpful to issuers of tax-advantaged municipal bonds. As such, we welcome comments and feedback from the tax-advantaged municipal bond community that provide further tools and clarification for issuers. Please submit your comments and feedback to TaxExemptBondQuestions@irs.gov inserting “Avoiding Troubled Tax-Advantaged Bonds Question” on the Subject: line.

The report covers three phases of the life cycle of bonds, each with various considerations, of which an issuer should be aware. These three identified phases are 1) the transaction development phase, 2) the transaction execution phase, and 3) the post-issuance phase. Watch for the TEB presentation of phase one “Transaction Development,” in an upcoming Webinar scheduled for this fall.

TEB hopes that the tax-exempt bond community will use this information to create related products beneficial to their members. These products will provide additional tools that facilitate issuer adoption of practices and procedures that avoid abusive or questionable transactions.

 

 

Page Last Reviewed or Updated: 26-Mar-2014

The Filing Past Taxes

Filing past taxes 3. Filing past taxes   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. Filing past taxes Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. Filing past taxes An exclusion from gross income is generally income you receive that is not included in your U. Filing past taxes S. Filing past taxes income and is not subject to U. Filing past taxes S. Filing past taxes tax. Filing past taxes This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. Filing past taxes Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. Filing past taxes Useful Items - You may want to see: Publication 54 Tax Guide for U. Filing past taxes S. Filing past taxes Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. Filing past taxes Resident Aliens Resident aliens may be able to exclude the following items from their gross income. Filing past taxes Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. Filing past taxes The exclusion is $97,600 in 2013. Filing past taxes In addition, you may be able to exclude or deduct certain foreign housing amounts. Filing past taxes You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. Filing past taxes For more information, see Publication 54. Filing past taxes Foreign country. Filing past taxes    A foreign country is any territory under the sovereignty of a government other than that of the United States. Filing past taxes   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. Filing past taxes It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. Filing past taxes   The term “foreign country” does not include U. Filing past taxes S. Filing past taxes possessions or territories. Filing past taxes It does not include the Antarctic region. Filing past taxes Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. Filing past taxes Interest Income Interest income that is not connected with a U. Filing past taxes S. Filing past taxes trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. Filing past taxes State and local government obligations. Filing past taxes   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. Filing past taxes S. Filing past taxes possession, generally is not included in income. Filing past taxes However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. Filing past taxes Portfolio interest. Filing past taxes   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. Filing past taxes To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. Filing past taxes Note. Filing past taxes For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. Filing past taxes Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. Filing past taxes Obligations in registered form. Filing past taxes   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. Filing past taxes   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. Filing past taxes   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. Filing past taxes For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. Filing past taxes Obligations not in registered form. Filing past taxes    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. Filing past taxes A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. Filing past taxes   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. Filing past taxes In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. Filing past taxes Interest that does not qualify as portfolio interest. Filing past taxes   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. Filing past taxes You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. Filing past taxes Contingent interest. Filing past taxes   Portfolio interest does not include contingent interest. Filing past taxes Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. Filing past taxes For exceptions, see Internal Revenue Code section 871(h)(4)(C). Filing past taxes Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. Filing past taxes Related persons. Filing past taxes   Related persons include the following. Filing past taxes Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Filing past taxes ), and lineal descendants (children, grandchildren, etc. Filing past taxes ). Filing past taxes Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. Filing past taxes Certain corporations, partnerships, and other entities. Filing past taxes For details, see Nondeductible Loss in chapter 2 of Publication 544. Filing past taxes Exception for existing debt. Filing past taxes   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. Filing past taxes Dividend Income The following dividend income is exempt from the 30% tax. Filing past taxes Certain dividends paid by foreign corporations. Filing past taxes   There is no 30% tax on U. Filing past taxes S. Filing past taxes source dividends you receive from a foreign corporation. Filing past taxes See Second exception under Dividends in chapter 2 for how to figure the amount of U. Filing past taxes S. Filing past taxes source dividends. Filing past taxes Certain interest-related dividends. Filing past taxes   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. Filing past taxes The mutual fund will designate in writing which dividends are interest-related dividends. Filing past taxes Certain short-term capital gain dividends. Filing past taxes   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. Filing past taxes The mutual fund will designate in writing which dividends are short-term capital gain dividends. Filing past taxes This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. Filing past taxes Services Performed for Foreign Employer If you were paid by a foreign employer, your U. Filing past taxes S. Filing past taxes source income may be exempt from U. Filing past taxes S. Filing past taxes tax, but only if you meet one of the situations discussed next. Filing past taxes Employees of foreign persons, organizations, or offices. Filing past taxes   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. Filing past taxes S. Filing past taxes sources and is tax exempt if you meet all three of the following conditions. Filing past taxes You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. Filing past taxes S. Filing past taxes corporation, a U. Filing past taxes S. Filing past taxes partnership, or a U. Filing past taxes S. Filing past taxes citizen or resident. Filing past taxes You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. Filing past taxes Your pay for these services is not more than $3,000. Filing past taxes If you do not meet all three conditions, your income from personal services performed in the United States is U. Filing past taxes S. Filing past taxes source income and is taxed according to the rules in chapter 4. Filing past taxes   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. Filing past taxes To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. Filing past taxes If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. Filing past taxes   A day means a calendar day during any part of which you are physically present in the United States. Filing past taxes Example 1. Filing past taxes During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. Filing past taxes S. Filing past taxes partnership. Filing past taxes Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. Filing past taxes That office paid him a total gross salary of $2,800 for those services. Filing past taxes During 2013, he was not engaged in a trade or business in the United States. Filing past taxes The salary is not considered U. Filing past taxes S. Filing past taxes source income and is exempt from U. Filing past taxes S. Filing past taxes tax. Filing past taxes Example 2. Filing past taxes The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. Filing past taxes He received $2,875 in 2013, and $1,625 in 2014. Filing past taxes During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. Filing past taxes Henry's salary is U. Filing past taxes S. Filing past taxes source income and is taxed under the rules in chapter 4. Filing past taxes Crew members. Filing past taxes   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. Filing past taxes S. Filing past taxes possession is not U. Filing past taxes S. Filing past taxes source income and is exempt from U. Filing past taxes S. Filing past taxes tax. Filing past taxes This exemption does not apply to compensation for services performed on foreign aircraft. Filing past taxes Students and exchange visitors. Filing past taxes   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. Filing past taxes   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. Filing past taxes It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. Filing past taxes   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. Filing past taxes Foreign employer. Filing past taxes   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. Filing past taxes S. Filing past taxes possession by a U. Filing past taxes S. Filing past taxes corporation, a U. Filing past taxes S. Filing past taxes partnership, or an individual who is a U. Filing past taxes S. Filing past taxes citizen or resident. Filing past taxes   The term “foreign employer” does not include a foreign government. Filing past taxes Pay from a foreign government that is exempt from U. Filing past taxes S. Filing past taxes income tax is discussed in chapter 10. Filing past taxes Income from certain annuities. Filing past taxes   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. Filing past taxes S. Filing past taxes income tax if you meet both of the following conditions. Filing past taxes You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . Filing past taxes At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. Filing past taxes S. Filing past taxes citizens or residents. Filing past taxes   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. Filing past taxes S. Filing past taxes citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. Filing past taxes   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. Filing past taxes Income affected by treaties. Filing past taxes   Income of any kind that is exempt from U. Filing past taxes S. Filing past taxes tax under a treaty to which the United States is a party is excluded from your gross income. Filing past taxes Income on which the tax is only limited by treaty, however, is included in gross income. Filing past taxes See chapter 9. Filing past taxes Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. Filing past taxes Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. Filing past taxes If you are married and file a joint return, you may be able to exclude up to $500,000. Filing past taxes For information on the requirements for this exclusion, see Publication 523. Filing past taxes This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. Filing past taxes Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. Filing past taxes The rules discussed here apply to both resident and nonresident aliens. Filing past taxes If a nonresident alien receives a grant that is not from U. Filing past taxes S. Filing past taxes sources, it is not subject to U. Filing past taxes S. Filing past taxes tax. Filing past taxes See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. Filing past taxes S. Filing past taxes sources. Filing past taxes A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. Filing past taxes Candidate for a degree. Filing past taxes   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Filing past taxes Eligible educational institution. Filing past taxes   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Filing past taxes Qualified education expenses. Filing past taxes   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Filing past taxes These items must be required of all students in your course of instruction. Filing past taxes However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. Filing past taxes Expenses that do not qualify. Filing past taxes   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Filing past taxes This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. Filing past taxes Scholarship or fellowship amounts used to pay these costs are taxable. Filing past taxes Amounts used to pay expenses that do not qualify. Filing past taxes   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. Filing past taxes Payment for services. Filing past taxes   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. Filing past taxes This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. Filing past taxes Example. Filing past taxes On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. Filing past taxes As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. Filing past taxes Of the $2,500 scholarship, $1,000 represents payment for her services. Filing past taxes Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. Filing past taxes Prev  Up  Next   Home   More Online Publications