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Form 1040ez Instructions

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Form 1040ez Instructions

Form 1040ez instructions 16. Form 1040ez instructions   How To Get Tax Help Table of Contents Go online, use a smart phone, call or walk in to an office near you. Form 1040ez instructions Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Form 1040ez instructions Free help with your tax return. Form 1040ez instructions   Free help in preparing your return is available nationwide from IRS-certified volunteers. Form 1040ez instructions The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Form 1040ez instructions The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Form 1040ez instructions Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Form 1040ez instructions Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Form 1040ez instructions To find the nearest VITA or TCE site, visit IRS. Form 1040ez instructions gov or call 1-800-906-9887. Form 1040ez instructions   As part of the TCE program, AARP offers the Tax-Aide counseling program. Form 1040ez instructions To find the nearest AARP Tax-Aide site, visit AARP's website at www. Form 1040ez instructions aarp. Form 1040ez instructions org/money/taxaide or call 1-888-227-7669. Form 1040ez instructions   For more information on these programs, go to IRS. Form 1040ez instructions gov and enter “VITA” in the search box. Form 1040ez instructions Internet. Form 1040ez instructions IRS. Form 1040ez instructions gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Form 1040ez instructions Apply for an Employer Identification Number (EIN). Form 1040ez instructions Go to IRS. Form 1040ez instructions gov and enter Apply for an EIN in the search box. Form 1040ez instructions Request an Electronic Filing PIN by going to IRS. Form 1040ez instructions gov and entering Electronic Filing PIN in the search box. Form 1040ez instructions Check the status of your 2013 refund with Where's My Refund? Go to IRS. Form 1040ez instructions gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Form 1040ez instructions If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Form 1040ez instructions Checking the status of your amended return. Form 1040ez instructions Go to IRS. Form 1040ez instructions gov and enter Where's My Amended Return in the search box. Form 1040ez instructions Download forms, instructions, and publications, including some accessible versions. Form 1040ez instructions Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Form 1040ez instructions gov or IRS2Go. Form 1040ez instructions Tax return and tax account transcripts are generally available for the current year and past three years. Form 1040ez instructions Figure your income tax withholding with the IRS Withholding Calculator on IRS. Form 1040ez instructions gov. Form 1040ez instructions Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Form 1040ez instructions Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Form 1040ez instructions gov. Form 1040ez instructions Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Form 1040ez instructions gov or IRS2Go. Form 1040ez instructions Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Form 1040ez instructions An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Form 1040ez instructions Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Form 1040ez instructions If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Form 1040ez instructions Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Form 1040ez instructions Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Form 1040ez instructions gov. Form 1040ez instructions Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Form 1040ez instructions The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Form 1040ez instructions Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Form 1040ez instructions AARP offers the Tax-Aide counseling program as part of the TCE program. Form 1040ez instructions Visit AARP's website to find the nearest Tax-Aide location. Form 1040ez instructions Research your tax questions. Form 1040ez instructions Search publications and instructions by topic or keyword. Form 1040ez instructions Read the Internal Revenue Code, regulations, or other official guidance. Form 1040ez instructions Read Internal Revenue Bulletins. Form 1040ez instructions Sign up to receive local and national tax news by email. Form 1040ez instructions Phone. Form 1040ez instructions You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Form 1040ez instructions Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Form 1040ez instructions Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Form 1040ez instructions Call to locate the nearest volunteer help site, 1-800-906-9887. Form 1040ez instructions Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Form 1040ez instructions The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Form 1040ez instructions Most VITA and TCE sites offer free electronic filing. Form 1040ez instructions Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Form 1040ez instructions Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Form 1040ez instructions Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Form 1040ez instructions The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Form 1040ez instructions If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Form 1040ez instructions Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Form 1040ez instructions Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Form 1040ez instructions Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Form 1040ez instructions Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Form 1040ez instructions Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Form 1040ez instructions You should receive your order within 10 business days. Form 1040ez instructions Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Form 1040ez instructions Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Form 1040ez instructions Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Form 1040ez instructions Call to ask tax questions, 1-800-829-1040. Form 1040ez instructions Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Form 1040ez instructions The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Form 1040ez instructions These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Form 1040ez instructions gsa. Form 1040ez instructions gov/fedrelay. Form 1040ez instructions Walk-in. Form 1040ez instructions You can find a selection of forms, publications and services — in-person, face-to-face. Form 1040ez instructions Products. Form 1040ez instructions You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Form 1040ez instructions Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Form 1040ez instructions Services. Form 1040ez instructions You can walk in to your local TAC most business days for personal, face-to-face tax help. Form 1040ez instructions An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Form 1040ez instructions If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Form 1040ez instructions No appointment is necessary—just walk in. Form 1040ez instructions Before visiting, check www. Form 1040ez instructions irs. Form 1040ez instructions gov/localcontacts for hours of operation and services provided. Form 1040ez instructions Mail. Form 1040ez instructions You can send your order for forms, instructions, and publications to the address below. Form 1040ez instructions You should receive a response within 10 business days after your request is received. Form 1040ez instructions  Internal Revenue Service 1201 N. Form 1040ez instructions Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Form 1040ez instructions   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Form 1040ez instructions Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Form 1040ez instructions What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Form 1040ez instructions We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Form 1040ez instructions You face (or your business is facing) an immediate threat of adverse action. Form 1040ez instructions You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Form 1040ez instructions   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Form 1040ez instructions Here's why we can help: TAS is an independent organization within the IRS. Form 1040ez instructions Our advocates know how to work with the IRS. Form 1040ez instructions Our services are free and tailored to meet your needs. Form 1040ez instructions We have offices in every state, the District of Columbia, and Puerto Rico. Form 1040ez instructions How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Form 1040ez instructions irs. Form 1040ez instructions gov/advocate, or call us toll-free at 1-877-777-4778. Form 1040ez instructions How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Form 1040ez instructions If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Form 1040ez instructions irs. Form 1040ez instructions gov/sams. Form 1040ez instructions Low Income Taxpayer Clinics. Form 1040ez instructions   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Form 1040ez instructions Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Form 1040ez instructions Visit www. Form 1040ez instructions TaxpayerAdvocate. Form 1040ez instructions irs. Form 1040ez instructions gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Form 1040ez instructions Prev  Up  Next   Home   More Online Publications
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The Form 1040ez Instructions

Form 1040ez instructions 2. Form 1040ez instructions   Source of Income Table of Contents Introduction Topics - This chapter discusses: Resident Aliens Nonresident AliensInterest Income Dividends Guarantee of Indebtedness Personal Services Transportation Income Scholarships, Grants, Prizes, and Awards Pensions and Annuities Rents or Royalties Real Property Personal Property Community Income Introduction After you have determined your alien status, you must determine the source of your income. Form 1040ez instructions This chapter will help you determine the source of different types of income you may receive during the tax year. Form 1040ez instructions This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. Form 1040ez instructions Topics - This chapter discusses: Income source rules, and Community income. Form 1040ez instructions Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. Form 1040ez instructions S. Form 1040ez instructions citizen. Form 1040ez instructions If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U. Form 1040ez instructions S. Form 1040ez instructions tax return. Form 1040ez instructions You must report these amounts from sources within and outside the United States. Form 1040ez instructions Nonresident Aliens A nonresident alien usually is subject to U. Form 1040ez instructions S. Form 1040ez instructions income tax only on U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions Under limited circumstances, certain foreign source income is subject to U. Form 1040ez instructions S. Form 1040ez instructions tax. Form 1040ez instructions See Foreign Income in chapter 4. Form 1040ez instructions The general rules for determining U. Form 1040ez instructions S. Form 1040ez instructions source income that apply to most nonresident aliens are shown in Table 2-1. Form 1040ez instructions The following discussions cover the general rules as well as the exceptions to these rules. Form 1040ez instructions Not all items of U. Form 1040ez instructions S. Form 1040ez instructions source income are taxable. Form 1040ez instructions See chapter 3. Form 1040ez instructions Interest Income Generally, U. Form 1040ez instructions S. Form 1040ez instructions source interest income includes the following items. Form 1040ez instructions Interest on bonds, notes, or other interest-bearing obligations of U. Form 1040ez instructions S. Form 1040ez instructions residents or domestic corporations. Form 1040ez instructions Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. Form 1040ez instructions S. Form 1040ez instructions trade or business at any time during the tax year. Form 1040ez instructions Original issue discount. Form 1040ez instructions Interest from a state, the District of Columbia, or the U. Form 1040ez instructions S. Form 1040ez instructions Government. Form 1040ez instructions The place or manner of payment is immaterial in determining the source of the income. Form 1040ez instructions A substitute interest payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as the interest on the transferred security. Form 1040ez instructions Exceptions. Form 1040ez instructions   U. Form 1040ez instructions S. Form 1040ez instructions source interest income does not include the following items. Form 1040ez instructions Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 80% of the payer's total gross income: Is from sources outside the United States, and Is attributable to the active conduct of a trade or business by the individual or corporation in a foreign country or a U. Form 1040ez instructions S. Form 1040ez instructions possession. Form 1040ez instructions However, the interest will be considered U. Form 1040ez instructions S. Form 1040ez instructions source interest income if either of the following apply. Form 1040ez instructions The recipient of the interest is related to the resident alien or domestic corporation. Form 1040ez instructions See section 954(d)(3) for the definition of related person. Form 1040ez instructions The terms of the obligation are significantly modified after August 9, 2010. Form 1040ez instructions Any extension of the term of the obligation is considered a significant modification. Form 1040ez instructions Interest paid by a foreign branch of a domestic corporation or a domestic partnership on 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. Form 1040ez instructions Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business. Form 1040ez instructions Dividends In most cases, dividend income received from domestic corporations is U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions Dividend income from foreign corporations is usually foreign source income. Form 1040ez instructions Exceptions to both of these rules are discussed below. Form 1040ez instructions A substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a distribution on the transferred security. Form 1040ez instructions Dividend equivalent payments. Form 1040ez instructions   U. Form 1040ez instructions S. Form 1040ez instructions source dividends also include all dividend equivalent payments. Form 1040ez instructions Dividend equivalent payments include substitute dividends, payments made pursuant to a specified notional principal contract, and all similar payments that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U. Form 1040ez instructions S. Form 1040ez instructions sources. Form 1040ez instructions    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. Form 1040ez instructions You can view this regulation at www. Form 1040ez instructions irs. Form 1040ez instructions gov/irb/2013-52_IRB/ar08. Form 1040ez instructions html. Form 1040ez instructions First exception. Form 1040ez instructions   Dividends received from a domestic corporation are not U. Form 1040ez instructions S. Form 1040ez instructions source income if the corporation elects to take the American Samoa economic development credit. Form 1040ez instructions Second exception. Form 1040ez instructions   Part of the dividends received from a foreign corporation is U. Form 1040ez instructions S. Form 1040ez instructions source income if 25% or more of its total gross income for the 3-year period ending with the close of its tax year preceding the declaration of dividends was effectively connected with a trade or business in the United States. Form 1040ez instructions If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. Form 1040ez instructions Determine the part that is U. Form 1040ez instructions S. Form 1040ez instructions source income by multiplying the dividend by the following fraction. Form 1040ez instructions   Foreign corporation's gross income connected with a U. Form 1040ez instructions S. Form 1040ez instructions trade or business for the 3-year period     Foreign corporation's gross income from all sources for that period   Guarantee of Indebtedness Certain amounts received directly or indirectly, for the provision of a guarantee of indebtedness issued after September 27, 2010, are U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions They must be paid by a noncorporate resident or U. Form 1040ez instructions S. Form 1040ez instructions corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. Form 1040ez instructions S. Form 1040ez instructions trade or business. Form 1040ez instructions For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). Form 1040ez instructions Personal Services All wages and any other compensation for services performed in the United States are considered to be from sources in the United States. Form 1040ez instructions The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. Form 1040ez instructions If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. Form 1040ez instructions Compensation (other than certain fringe benefits) is sourced on a time basis. Form 1040ez instructions Certain fringe benefits (such as housing and education) are sourced on a geographical basis. Form 1040ez instructions Or, you may be permitted to use an alternative basis to determine the source of compensation. Form 1040ez instructions See Alternative Basis , later. Form 1040ez instructions Multi-level marketing. Form 1040ez instructions   Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. Form 1040ez instructions Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. Form 1040ez instructions The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable. Form 1040ez instructions Self-employed individuals. Form 1040ez instructions   If you are self-employed, you determine the source of compensation for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. Form 1040ez instructions In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. Form 1040ez instructions Time Basis Use a time basis to figure your U. Form 1040ez instructions S. Form 1040ez instructions source compensation (other than the fringe benefits discussed later). Form 1040ez instructions Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed services in the United States during the year     Total number of days you performed services during the year   You can use a unit of time less than a day in the above fraction, if appropriate. Form 1040ez instructions The time period for which the compensation is made does not have to be a year. Form 1040ez instructions Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. Form 1040ez instructions Example 1. Form 1040ez instructions Christina Brooks, a resident of the Netherlands, worked 240 days for a U. Form 1040ez instructions S. Form 1040ez instructions company during the tax year. Form 1040ez instructions She received $80,000 in compensation. Form 1040ez instructions None of it was for fringe benefits. Form 1040ez instructions Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. Form 1040ez instructions Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions Example 2. Form 1040ez instructions Rob Waters, a resident of South Africa, is employed by a corporation. Form 1040ez instructions His annual salary is $100,000. Form 1040ez instructions None of it is for fringe benefits. Form 1040ez instructions During the first quarter of the year he worked entirely within the United States. Form 1040ez instructions On April 1, Rob was transferred to Singapore for the remainder of the year. Form 1040ez instructions Rob is able to establish that the first quarter of the year and the last 3 quarters of the year are two separate, distinct, and continuous periods of time. Form 1040ez instructions Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. Form 1040ez instructions 25 × $100,000). Form 1040ez instructions All of it is U. Form 1040ez instructions S. Form 1040ez instructions source income because he worked entirely within the United States during that quarter. Form 1040ez instructions The remaining $75,000 is attributable to the last three quarters of the year. Form 1040ez instructions During those quarters, he worked 150 days in Singapore and 30 days in the United States. Form 1040ez instructions His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. Form 1040ez instructions Of this $75,000, $12,500 ($75,000 × 30/180) is U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions Multi-year compensation. Form 1040ez instructions   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. Form 1040ez instructions Multi-year compensation is compensation that is included in your income in one tax year but that is attributable to a period that includes two or more tax years. Form 1040ez instructions   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. Form 1040ez instructions For example, an amount of compensation that specifically relates to a period of time that includes several calendar years is attributable to the entire multi-year period. Form 1040ez instructions   The amount of compensation treated as from U. Form 1040ez instructions S. Form 1040ez instructions sources is figured by multiplying the total multi-year compensation by a fraction. Form 1040ez instructions The numerator of the fraction is the number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in the United States in connection with the project. Form 1040ez instructions The denominator of the fraction is the total number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the project. Form 1040ez instructions Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. Form 1040ez instructions Housing. Form 1040ez instructions Education. Form 1040ez instructions Local transportation. Form 1040ez instructions Tax reimbursement. Form 1040ez instructions Hazardous or hardship duty pay as defined in Regulations section 1. Form 1040ez instructions 861-4(b)(2)(ii)(D)(5). Form 1040ez instructions Moving expense reimbursement. Form 1040ez instructions The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. Form 1040ez instructions Principal place of work. Form 1040ez instructions   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. Form 1040ez instructions Your principal place of work is usually the place where you spend most of your working time. Form 1040ez instructions This could be your office, plant, store, shop, or other location. Form 1040ez instructions If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. Form 1040ez instructions   If you have more than one job at any time, your main job location depends on the facts in each case. Form 1040ez instructions The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. Form 1040ez instructions Housing. Form 1040ez instructions   The source of a housing fringe benefit is determined based on the location of your principal place of work. Form 1040ez instructions A housing fringe benefit includes payments to you or on your behalf (and your family's if your family resides with you) only for the following. Form 1040ez instructions Rent. Form 1040ez instructions Utilities (except telephone charges). Form 1040ez instructions Real and personal property insurance. Form 1040ez instructions Occupancy taxes not deductible under section 164 or 216(a). Form 1040ez instructions Nonrefundable fees for securing a leasehold. Form 1040ez instructions Rental of furniture and accessories. Form 1040ez instructions Household repairs. Form 1040ez instructions Residential parking. Form 1040ez instructions Fair rental value of housing provided in kind by your employer. Form 1040ez instructions   A housing fringe benefit does not include: Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation), The cost of buying property, including principal payments on a mortgage, The cost of domestic labor (maids, gardeners, etc. Form 1040ez instructions ), Pay television subscriptions, Improvements and other expenses that increase the value or appreciably prolong the life of property, Purchased furniture or accessories, Depreciation or amortization of property or improvements, The value of meals or lodging that you exclude from gross income, or The value of meals or lodging that you deduct as moving expenses. Form 1040ez instructions Education. Form 1040ez instructions   The source of an education fringe benefit for the education expenses of your dependents is determined based on the location of your principal place of work. Form 1040ez instructions An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. Form 1040ez instructions Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. Form 1040ez instructions Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. Form 1040ez instructions Local transportation. Form 1040ez instructions   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. Form 1040ez instructions Your local transportation fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. Form 1040ez instructions The amount treated as a local transportation fringe benefit is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. Form 1040ez instructions Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. Form 1040ez instructions Tax reimbursement. Form 1040ez instructions   The source of a tax reimbursement fringe benefit is determined based on the location of the jurisdiction that imposed the tax for which you are reimbursed. Form 1040ez instructions Moving expense reimbursement. Form 1040ez instructions   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. Form 1040ez instructions However, the source is determined based on the location of your former principal place of work if you provide sufficient evidence that such determination of source is more appropriate under the facts and circumstances of your case. Form 1040ez instructions Sufficient evidence generally requires an agreement between you and your employer, or a written statement of company policy, which is reduced to writing before the move and which is entered into or established to induce you or other employees to move to another country. Form 1040ez instructions The written statement or agreement must state that your employer will reimburse you for moving expenses that you incur to return to your former principal place of work regardless of whether you continue to work for your employer after returning to that location. Form 1040ez instructions It may contain certain conditions upon which the right to reimbursement is determined as long as those conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of work. Form 1040ez instructions Alternative Basis If you are an employee, you can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your compensation than the time or geographical basis. Form 1040ez instructions If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your compensation. Form 1040ez instructions Also, if your total compensation from all sources is $250,000 or more, check “Yes” to both questions on line K on page 5 of Form 1040NR, and attach a written statement to your tax return that sets forth all of the following. Form 1040ez instructions Your name and social security number (written across the top of the statement). Form 1040ez instructions The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. Form 1040ez instructions For each item in (2), the alternative basis of allocation of source used. Form 1040ez instructions For each item in (2), a computation showing how the alternative allocation was computed. Form 1040ez instructions A comparison of the dollar amount of the U. Form 1040ez instructions S. Form 1040ez instructions compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. Form 1040ez instructions Transportation Income Transportation income is income from the use of a vessel or aircraft or for the performance of services directly related to the use of any vessel or aircraft. Form 1040ez instructions This is true whether the vessel or aircraft is owned, hired, or leased. Form 1040ez instructions The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. Form 1040ez instructions All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. Form 1040ez instructions If the transportation begins or ends in the United States, 50% of the transportation income is treated as derived from sources in the United States. Form 1040ez instructions For transportation income from personal services, 50% of the income is U. Form 1040ez instructions S. Form 1040ez instructions source income if the transportation is between the United States and a U. Form 1040ez instructions S. Form 1040ez instructions possession. Form 1040ez instructions For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. Form 1040ez instructions For information on how U. Form 1040ez instructions S. Form 1040ez instructions source transportation income is taxed, see chapter 4. Form 1040ez instructions Scholarships, Grants, Prizes, and Awards Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. Form 1040ez instructions However, see Activities to be performed outside the United States , later. Form 1040ez instructions For example, payments for research or study in the United States made by the United States, a noncorporate U. Form 1040ez instructions S. Form 1040ez instructions resident, or a domestic corporation, are from U. Form 1040ez instructions S. Form 1040ez instructions sources. Form 1040ez instructions Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. Form 1040ez instructions S. Form 1040ez instructions agent. Form 1040ez instructions Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. Form 1040ez instructions Activities to be performed outside the United States. Form 1040ez instructions   Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United States are not U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions    These rules do not apply to amounts paid as salary or other compensation for services. Form 1040ez instructions See Personal Services, earlier, for the source rules that apply. Form 1040ez instructions Pensions and Annuities If you receive a pension from a domestic trust for services performed both in and outside the United States, part of the pension payment is from U. Form 1040ez instructions S. Form 1040ez instructions sources. Form 1040ez instructions That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. Form 1040ez instructions This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). Form 1040ez instructions If you performed services as an employee of the United States, you may receive a distribution from the U. Form 1040ez instructions S. Form 1040ez instructions Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. Form 1040ez instructions Your U. Form 1040ez instructions S. Form 1040ez instructions source income is the otherwise taxable amount of the distribution that is attributable to your total U. Form 1040ez instructions S. Form 1040ez instructions Government basic pay other than tax-exempt pay for services performed outside the United States. Form 1040ez instructions Rents or Royalties Your U. Form 1040ez instructions S. Form 1040ez instructions source income includes rent and royalty income received during the tax year from property located in the United States or from any interest in that property. Form 1040ez instructions U. Form 1040ez instructions S. Form 1040ez instructions source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property. Form 1040ez instructions Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. Form 1040ez instructions Gross income from sources in the United States includes gains, profits, and income from the sale or other disposition of real property located in the United States. Form 1040ez instructions Natural resources. Form 1040ez instructions   The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a foreign country, or located in a foreign country and sold in the United States, is partly from sources in the United States. Form 1040ez instructions For information on determining that part, see section 1. Form 1040ez instructions 863-1(b) of the regulations. Form 1040ez instructions Table 2-1. Form 1040ez instructions Summary of Source Rules for Income of Nonresident Aliens Item of income Factor determining source Salaries, wages, other compensation Where services performed Business income:   Personal services Where services performed Sale of inventory—purchased Where sold Sale of inventory—produced Allocation Interest Residence of payer Dividends Whether a U. Form 1040ez instructions S. Form 1040ez instructions or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. Form 1040ez instructions Where property is used Sale of real property Location of property Sale of personal property Seller's tax home (but see Personal Property , later, for exceptions) Pension distributions attributable to contributions Where services were performed that earned the pension Investment earnings on pension contributions Location of pension trust Sale of natural resources Allocation based on fair market value of product at export terminal. Form 1040ez instructions For more information, see section 1. Form 1040ez instructions 863-1(b) of the regulations. Form 1040ez instructions *Exceptions include: a) Dividends paid by a U. Form 1040ez instructions S. Form 1040ez instructions corporation are foreign source if the corporation elects the  American Samoa economic development credit. Form 1040ez instructions  b) Part of a dividend paid by a foreign corporation is U. Form 1040ez instructions S. Form 1040ez instructions source if at least 25% of the  corporation's gross income is effectively connected with a U. Form 1040ez instructions S. Form 1040ez instructions trade or business for the  3 tax years before the year in which the dividends are declared. Form 1040ez instructions Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. Form 1040ez instructions Gain or loss from the sale or exchange of personal property generally has its source in the United States if you have a tax home in the United States. Form 1040ez instructions If you do not have a tax home in the United States, the gain or loss generally is considered to be from sources outside the United States. Form 1040ez instructions Tax home. Form 1040ez instructions   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Form 1040ez instructions Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. Form 1040ez instructions If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. Form 1040ez instructions If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Form 1040ez instructions Inventory property. Form 1040ez instructions   Inventory property is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. Form 1040ez instructions Income from the sale of inventory that you purchased is sourced where the property is sold. Form 1040ez instructions Generally, this is where title to the property passes to the buyer. Form 1040ez instructions For example, income from the sale of inventory in the United States is U. Form 1040ez instructions S. Form 1040ez instructions source income, whether you purchased it in the United States or in a foreign country. Form 1040ez instructions   Income from the sale of inventory property that you produced in the United States and sold outside the United States (or vice versa) is partly from sources in the United States and partly from sources outside the United States. Form 1040ez instructions For information on making this allocation, see section 1. Form 1040ez instructions 863-3 of the regulations. Form 1040ez instructions   These rules apply even if your tax home is not in the United States. Form 1040ez instructions Depreciable property. Form 1040ez instructions   To determine the source of any gain from the sale of depreciable personal property, you must first figure the part of the gain that is not more than the total depreciation adjustments on the property. Form 1040ez instructions You allocate this part of the gain to sources in the United States based on the ratio of U. Form 1040ez instructions S. Form 1040ez instructions depreciation adjustments to total depreciation adjustments. Form 1040ez instructions The rest of this part of the gain is considered to be from sources outside the United States. Form 1040ez instructions   For this purpose, “U. Form 1040ez instructions S. Form 1040ez instructions depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. Form 1040ez instructions S. Form 1040ez instructions sources. Form 1040ez instructions However, if the property is used predominantly in the United States during a tax year, all depreciation deductions allowable for that year are treated as U. Form 1040ez instructions S. Form 1040ez instructions depreciation adjustments. Form 1040ez instructions But there are some exceptions for certain transportation, communications, and other property used internationally. Form 1040ez instructions   Gain from the sale of depreciable property that is more than the total depreciation adjustments on the property is sourced as if the property were inventory property, as discussed above. Form 1040ez instructions   A loss is sourced in the same way as the depreciation deductions were sourced. Form 1040ez instructions However, if the property was used predominantly in the United States, the entire loss reduces U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. Form 1040ez instructions Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. Form 1040ez instructions The amount you can deduct depends on the property's cost, when you began using the property, how long it will take to recover your cost, and which depreciation method you use. Form 1040ez instructions A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. Form 1040ez instructions Intangible property. Form 1040ez instructions   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. Form 1040ez instructions The gain from the sale of amortizable or depreciable intangible property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the original deductions were sourced. Form 1040ez instructions This is the same as the source rule for gain from the sale of depreciable property. Form 1040ez instructions See Depreciable property , earlier, for details on how to apply this rule. Form 1040ez instructions   Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is used if the income from the sale is contingent on the productivity, use, or disposition of that property. Form 1040ez instructions If the income is not contingent on the productivity, use, or disposition of the property, the income is sourced according to your tax home as discussed earlier. Form 1040ez instructions If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. Form 1040ez instructions Sales through offices or fixed places of business. Form 1040ez instructions   Despite any of the earlier rules, if you do not have a tax home in the United States, but you maintain an office or other fixed place of business in the United States, treat the income from any sale of personal property (including inventory property) that is attributable to that office or place of business as U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions However, this rule does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your office or other fixed place of business outside the United States materially participated in the sale. Form 1040ez instructions   If you have a tax home in the United States but maintain an office or other fixed place of business outside the United States, income from sales of personal property, other than inventory, depreciable property, or intangibles, that is attributable to that foreign office or place of business may be treated as U. Form 1040ez instructions S. Form 1040ez instructions source income. Form 1040ez instructions The income is treated as U. Form 1040ez instructions S. Form 1040ez instructions source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. Form 1040ez instructions This rule also applies to losses if the foreign country would have imposed an income tax of less than 10% had the sale resulted in a gain. Form 1040ez instructions Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. Form 1040ez instructions S. Form 1040ez instructions state, or a U. Form 1040ez instructions S. Form 1040ez instructions possession, you generally must follow those laws to determine the income of yourself and your spouse for U. Form 1040ez instructions S. Form 1040ez instructions tax purposes. Form 1040ez instructions But you must disregard certain community property laws if: Both you and your spouse are nonresident aliens, or One of you is a nonresident alien and the other is a U. Form 1040ez instructions S. Form 1040ez instructions citizen or resident and you do not both choose to be treated as U. Form 1040ez instructions S. Form 1040ez instructions residents as explained in chapter 1. Form 1040ez instructions In these cases, you and your spouse must report community income as explained later. Form 1040ez instructions Earned income. Form 1040ez instructions   Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the spouse whose services produced the income. Form 1040ez instructions That spouse must report all of it on his or her separate return. Form 1040ez instructions Trade or business income. Form 1040ez instructions   Trade or business income, other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on the trade or business. Form 1040ez instructions That spouse must report all of it on his or her separate return. Form 1040ez instructions Partnership income (or loss). Form 1040ez instructions   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. Form 1040ez instructions The partner must report all of it on his or her separate return. Form 1040ez instructions Separate property income. Form 1040ez instructions   Income derived from the separate property of one spouse (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. Form 1040ez instructions That spouse must report all of it on his or her separate return. Form 1040ez instructions Use the appropriate community property law to determine what is separate property. Form 1040ez instructions Other community income. Form 1040ez instructions   All other community income is treated as provided by the applicable community property laws. Form 1040ez instructions Prev  Up  Next   Home   More Online Publications