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Free Efile Taxes

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Free Efile Taxes

Free efile taxes 3. Free efile taxes   Credit for Withholding and Estimated Tax for 2013 Table of Contents Introduction Topics - This chapter discusses: WithholdingForm W-2 Form W-2G The 1099 Series Form Not Correct Form Received After Filing Separate Returns Fiscal Years (FY) Estimated TaxSeparate Returns Divorced Taxpayers Excess Social Security or Railroad Retirement Tax WithholdingJoint returns. Free efile taxes Worksheet for Nonrailroad Employees Worksheets for Railroad Employees Introduction When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Free efile taxes Also take credit for the estimated tax you paid for 2013. Free efile taxes These credits are subtracted from your total tax. Free efile taxes Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Free efile taxes If the total of your withholding and your estimated tax payments for any payment period is less than the amount you needed to pay by the due date for that period, you may be charged a penalty, even if the total of these credits is more than your tax for the year. Free efile taxes Topics - This chapter discusses: How to take credit for withholding, How to take credit for estimated taxes you paid, and How to take credit for excess social security, Medicare, or railroad retirement tax withholding. Free efile taxes Withholding If you had income tax withheld during 2013, you generally should be sent a statement by January 31, 2014, showing your income and the tax withheld. Free efile taxes Depending on the source of your income, you will receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Free efile taxes Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Free efile taxes You should receive a separate Form W-2 from each employer you worked for. Free efile taxes If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Free efile taxes However, your employer must provide or send it to you by January 31, 2014. Free efile taxes If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Free efile taxes If you have not received your Form W-2 by January 31, contact your employer or payer to request a copy. Free efile taxes If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Free efile taxes The phone number for the IRS is listed in chapter 5. Free efile taxes You will be asked for the following information. Free efile taxes Your name, address, city and state, zip code, and social security number. Free efile taxes Your employer's name, address, city, state, zip code, and the employer's identification number (if known). Free efile taxes An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. Free efile taxes The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible. Free efile taxes Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Free efile taxes Total the federal income tax withheld (shown in box 2 of all Forms W-2 received) and enter that amount on the appropriate line of your tax return. Free efile taxes In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Free efile taxes Your sick pay may be combined with other wages in one Form W-2 or you may receive a separate Form W-2 for sick pay. Free efile taxes If you file a paper tax return, attach Copy B of Form W-2 to your return. Free efile taxes Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Free efile taxes If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Free efile taxes Report the amounts you won on line 21 of Form 1040. Free efile taxes Take credit for the tax withheld on line 62 of Form 1040. Free efile taxes If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Free efile taxes Gambling losses can be deducted on Schedule A (Form 1040) as a miscellaneous itemized deduction. Free efile taxes However, you cannot deduct more than the gambling winnings you report on Form 1040. Free efile taxes File Form W-2G with your income tax return only if it shows any federal income tax withheld in box 2. Free efile taxes The 1099 Series Most forms in the 1099 series are not filed with your return. Free efile taxes In general, these forms should be furnished to you by January 31, 2014. Free efile taxes Unless instructed to file any of these forms with your return, keep them for your records. Free efile taxes There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-C, Cancellation of Debt; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third-Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received From Cooperatives; Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530); Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free efile taxes ; Form SSA-1099, Social Security Benefit Statement; and Form RRB-1099, Payments by the Railroad Retirement Board. Free efile taxes If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Free efile taxes See the instructions to these forms for details. Free efile taxes Reporting your withholding. Free efile taxes   Report on your tax return all federal income tax withholding shown on your Form 1099, Form SSA-1099, and/or Form RRB-1099. Free efile taxes Include the amount withheld in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Free efile taxes Form 1099-R. Free efile taxes   Attach Form 1099-R to your paper return if federal income tax withholding is shown in box 4. Free efile taxes Do not attach any other Form 1099. Free efile taxes Form Not Correct If you receive a form with incorrect information, you should ask the payer for a corrected form. Free efile taxes Call the telephone number or write to the address given for the payer on the form. Free efile taxes The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Free efile taxes A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Free efile taxes In certain situations, you will receive two forms in place of the original incorrect form. Free efile taxes This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Free efile taxes One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Free efile taxes This form will have an “X” in the “CORRECTED” box at the top of the form. Free efile taxes The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Free efile taxes Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Free efile taxes S. Free efile taxes Individual Income Tax Return. Free efile taxes Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Free efile taxes Do not include any amount withheld from your spouse's income. Free efile taxes However, different rules may apply if you live in a community property state. Free efile taxes Community property states. Free efile taxes   The following are community property states. Free efile taxes Arizona. Free efile taxes California. Free efile taxes Idaho. Free efile taxes Louisiana. Free efile taxes Nevada. Free efile taxes New Mexico. Free efile taxes Texas. Free efile taxes Washington. Free efile taxes Wisconsin. Free efile taxes Generally, if you live in a community property state and file a separate return, you and your spouse each must report half of all community income in addition to your own separate income. Free efile taxes If you are required to report half of all community income, you are entitled to take credit for half of all taxes withheld on the community income. Free efile taxes If you were divorced during the year, each of you generally must report half the community income and can take credit for half the withholding on that community income for the period before the divorce. Free efile taxes   For more information on these rules, and some exceptions, see Publication 555, Community Property. Free efile taxes Fiscal Years (FY) If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules, described below, to determine your credit for federal income tax withholding. Free efile taxes Fiscal year withholding. Free efile taxes    You can claim credit on your tax return only for the tax withheld during the calendar year (CY) ending within your fiscal year. Free efile taxes You cannot claim credit for any of the tax withheld during the calendar year beginning in your fiscal year. Free efile taxes You will be able to claim credit for that withholding on your return for your next fiscal year. Free efile taxes   The Form W-2 or 1099 you receive for the calendar year that ends during your fiscal year will show the tax withheld and the income you received during that calendar year. Free efile taxes   Although you take credit for all the withheld tax shown on the form, report only the part of the income shown on the form that you received during your fiscal year. Free efile taxes Add to that the income you received during the rest of your fiscal year. Free efile taxes Example. Free efile taxes Miles Hanson files his return for a fiscal year ending June 30, 2013. Free efile taxes In January 2013, he received a Form W-2 that showed that his wages for 2012 were $31,200 and that his income tax withheld was $3,380. Free efile taxes His records show that he had received $15,000 of the wages by June 30, 2012, and $16,200 from July 1 through December 31, 2012. Free efile taxes See Table 3-1 . Free efile taxes On his return for the fiscal year ending June 30, 2013, Miles will report the $16,200 he was paid in July through December of 2012, plus the $18,850 he was paid during the rest of the fiscal year, January 1, 2013, through June 30, 2013. Free efile taxes However, he takes credit for all $3,380 that was withheld during 2012. Free efile taxes On his return for the fiscal year ending June 30, 2012, he reported the $15,000 he was paid in January through June 2012, but took no credit for the tax withheld during that time. Free efile taxes On his return for the fiscal year ending June 30, 2014, he will take the credit for any tax withheld during 2013 but not for any tax withheld during 2014. Free efile taxes Table 3-1. Free efile taxes Example for Fiscal Year Ending June 30, 2013—Miles Hanson Date Form W-2 Miles' records Tax return for FY ending 6/30/20121 Tax return for FY ending 6/30/2013 Wages With- holding Wages With- holding Wages With- holding Wages With- holding CY 20122 $31,200 $3,380             1/1/2012 –  6/30/2012     $15,000 $1,600 $15,000       7/1/2012 –  12/31/2012     $16,200 $1,780     $16,200 $3,380 CY 2013 $37,700 $4,316 3             1/1/2013 –  6/30/2013     $18,850 $2,158     $18,850   7/1/2013 –  12/31/2013     $18,850 4 $2,158         1Miles' tax return for FY ending 6/30/2012 also included his wages for 7/1–12/31/2011 and the withholding shown on his 2011 Form W-2. Free efile taxes  2Calendar year (January 1 – December 31). Free efile taxes   3Withholding shown on 2013 Form W-2 ($4,316) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which calendar year 2013 ends. Free efile taxes   4Wages for 7/1–12/31/2013 ($18,850) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which the wages were received. Free efile taxes Backup withholding. Free efile taxes   If income tax has been withheld under the backup withholding rule, take credit for it on your tax return for the fiscal year in which you received the income. Free efile taxes Example. Free efile taxes Emily Smith's records show that she received income in November 2013 and February 2014 from which there was backup withholding ($100 and $50, respectively). Free efile taxes Emily takes credit for the entire $150 of backup withholding on her tax return for the fiscal year ending September 30, 2014. Free efile taxes Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Free efile taxes Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Free efile taxes You must use Form 1040 or Form 1040A if you paid estimated tax. Free efile taxes You cannot file Form 1040EZ. Free efile taxes If you were a beneficiary of an estate or trust, you should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Free efile taxes , from the fiduciary. Free efile taxes If you have estimated taxes credited to you from the estate or trust (from Schedule K-1 (Form 1041)), you must report the estimated taxes on Schedule E (Form 1040). Free efile taxes On the dotted line next to the entry space for line 37 of Schedule E (Form 1040), enter “ES payment claimed” and the amount. Free efile taxes However, do not include this amount in the total on line 37. Free efile taxes Instead, enter the amount on Form 1040, line 63. Free efile taxes This estimated tax payment for 2013 is treated as being made by you on January 15, 2014. Free efile taxes Name changed. Free efile taxes   If you changed your name, and you made estimated tax payments using your former name, attach a statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and The social security number under which you made the payments. Free efile taxes  The statement should cover payments you made jointly with your spouse as well as any you made separately. Free efile taxes   Be sure to report the change to your local Social Security Administration office before filing your 2014 tax return. Free efile taxes This prevents delays in processing your return and issuing refunds. Free efile taxes It also safeguards your future social security benefits. Free efile taxes For more information, call the Social Security Administration at 1-800-772-1213. Free efile taxes Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Free efile taxes If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Free efile taxes One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Free efile taxes If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free efile taxes Example. Free efile taxes James and Evelyn Brown made joint estimated tax payments for 2013 totaling $3,000. Free efile taxes They file separate 2013 Forms 1040. Free efile taxes James' tax is $4,000 and Evelyn's is $1,000. Free efile taxes If they do not agree on how to divide the $3,000, they must divide it proportionately between their returns. Free efile taxes Because James' tax ($4,000) is 80% of the total tax ($5,000), his share of the estimated tax is $2,400 (80% of $3,000). Free efile taxes The balance, $600 (20% of $3,000), is Evelyn's share. Free efile taxes Divorced Taxpayers If you made joint estimated tax payments for 2013 and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Free efile taxes If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free efile taxes See Example earlier under Separate Returns. Free efile taxes If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided at the top of page 1 of Form 1040 or Form 1040A. Free efile taxes If you divorced and remarried in 2013, enter your present spouse's SSN in that space. Free efile taxes Enter your former spouse's SSN, followed by “DIV,” under Payments to the left of Form 1040, line 63, or in the blank space to the left of Form 1040A, line 37. Free efile taxes Excess Social Security or Railroad Retirement Tax Withholding Most employers must withhold social security tax from your wages. Free efile taxes In some cases, however, the federal government and state and local governments do not have to withhold social security tax from their employees' wages. Free efile taxes If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Free efile taxes Two or more employers. Free efile taxes   If you worked for two or more employers in 2013, too much social security tax or tier 1 RRTA tax may have been withheld from your pay. Free efile taxes You may be able to claim the excess as a credit against your income tax when you file your return. Free efile taxes Table 3-2 shows the maximum amount that should have been withheld for any of these taxes for 2013. Free efile taxes Figure the excess withholding on the appropriate worksheet. Free efile taxes    Table 3-2. Free efile taxes Maximum Social Security and RRTA Withholding for 2013 Type of tax Maximum wages subject to tax Tax rate Maximum tax to be withheld Social security $113,700 6. Free efile taxes 2% $7,049. Free efile taxes 40 Tier 1 RRTA $113,700 6. Free efile taxes 2% $7,049. Free efile taxes 40 Tier 2 RRTA $84,300 4. Free efile taxes 4% $3,709. Free efile taxes 20 Joint returns. Free efile taxes   If you are filing a joint return, you and your spouse must figure any excess social security or tier 1 RRTA separately. Free efile taxes Note. Free efile taxes All wages are subject to Medicare tax withholding. Free efile taxes Employer's error. Free efile taxes   If you had only one employer and he or she withheld too much social security, Medicare, or tier 1 RRTA tax, ask the employer to refund the excess amount to you. Free efile taxes If the employer refuses to refund the overcollection, ask for a statement indicating the amount of the overcollection to support your claim. Free efile taxes File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Free efile taxes Worksheet for Nonrailroad Employees If you did not work for a railroad during 2013, figure the excess social security withholding on Worksheet 3-1. Free efile taxes Note. Free efile taxes If you worked for both a railroad employer and a nonrailroad employer, use Worksheet 3-2, to figure excess social security and tier 1 RRTA tax. Free efile taxes Where to claim credit for excess social security withholding. Free efile taxes   If you file Form 1040, enter the excess on line 69. Free efile taxes   If you file Form 1040A, include the excess in the total on line 41. Free efile taxes Write “Excess SST” and show the amount of the credit in the space to the left of the line. Free efile taxes   You cannot claim excess social security tax withholding on Form 1040EZ. Free efile taxes Worksheets for Railroad Employees If you worked for a railroad during 2013, figure your excess withholding on Worksheet 3-2 and 3-3, as appropriate. Free efile taxes Where to claim credit for excess tier 1 RRTA withholding. Free efile taxes   If you file Form 1040, enter the excess on line 69. Free efile taxes   If you file Form 1040A, include the excess in the total on line 41. Free efile taxes Write “Excess SST” and show the amount of the credit in the space to the left of the line. Free efile taxes   You cannot claim excess tier 1 RRTA withholding on Form 1040EZ. Free efile taxes How to claim refund of excess tier 2 RRTA. Free efile taxes   To claim a refund of tier 2 tax, use Form 843. Free efile taxes Be sure to attach a copy of all of your Forms W-2. Free efile taxes   See Worksheet 3-3 and the Instructions for Form 843, for more details. Free efile taxes Worksheet 3-1. Free efile taxes Excess Social Security—Nonrailroad Employees 1. Free efile taxes Add all social security tax withheld (but not more than  $7,049. Free efile taxes 40 for each employer). Free efile taxes This tax should be shown  in box 4 of your Forms W-2. Free efile taxes Enter the total here 1. Free efile taxes   2. Free efile taxes Enter any uncollected social security tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Free efile taxes   3. Free efile taxes Add lines 1 and 2. Free efile taxes If $7,049. Free efile taxes 40 or less, stop here. Free efile taxes You cannot claim the credit 3. Free efile taxes   4. Free efile taxes Social security limit 4. Free efile taxes $7,049. Free efile taxes 40 5. Free efile taxes Excess. Free efile taxes Subtract line 4 from line 3 5. Free efile taxes   Worksheet 3-2. Free efile taxes Excess Social Security and Tier 1 RRTA—Railroad Employees 1. Free efile taxes Add all social security and tier 1 RRTA tax withheld (but not more than $7,049. Free efile taxes 40 for each employer). Free efile taxes Social security tax should be shown in box 4 and tier 1 RRTA should be shown  in box 14 of your Forms W-2. Free efile taxes Enter the total here 1. Free efile taxes   2. Free efile taxes Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Free efile taxes   3. Free efile taxes Add lines 1 and 2. Free efile taxes If $7,049. Free efile taxes 40 or less, stop here. Free efile taxes You cannot claim the credit 3. Free efile taxes   4. Free efile taxes Social security and tier 1 RRTA tax limit 4. Free efile taxes $7,049. Free efile taxes 40 5. Free efile taxes Excess. Free efile taxes Subtract line 4 from line 3 5. Free efile taxes   Worksheet 3-3. Free efile taxes Excess Tier 2 RRTA—Railroad Employees 1. Free efile taxes Add all tier 2 RRTA tax withheld (but not more than $3,709. Free efile taxes 20 for each employer). Free efile taxes Box 14 of your Forms W-2 should show tier 2 RRTA tax. Free efile taxes Enter the total here 1. Free efile taxes   2. Free efile taxes Enter any uncollected tier 2 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Free efile taxes   3. Free efile taxes Add lines 1 and 2. Free efile taxes If $3,709. Free efile taxes 20 or less, stop here. Free efile taxes You cannot claim the credit. Free efile taxes 3. Free efile taxes   4. Free efile taxes Tier 2 RRTA tax limit 4. Free efile taxes $3,709. Free efile taxes 20 5. Free efile taxes Excess. Free efile taxes Subtract line 4 from line 3. Free efile taxes 5. Free efile taxes   Prev  Up  Next   Home   More Online Publications
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Understanding your CP504B Notice

You have an unpaid amount due on your account. If you do not pay the amount due immediately, the
IRS will seize (levy) certain property or rights to property and apply it to pay the
amount you owe.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

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

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

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


What you need to do

  • Read your notice carefully — it explains your due date, amount due, and payment options.
  • Make your payment by your due date. Go to the payments page to find out more about your payment options.

You may want to...


Answers to Common Questions

What is the notice telling me?
This notice is telling you that we intend to issue a levy against certain property or rights to property because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. It is also telling you that we will begin searching for other assets on which to issue a levy. We may also file a Federal Tax Lien, if we have not already done so.

What do I have to do?
Pay the amount due shown on the notice. Mail us your payment in the envelope we sent you. Include the bottom part of the notice to make sure we correctly credit your account.

If you can't pay the whole amount now, call us at the number printed at the top of the notice to see if you qualify for an installment agreement.

How much time do I have?
You should pay your balance due by the due date shown on your notice.

What happens if I don't pay or contact the IRS?
If you don't pay the amount due, we may send you a notice giving you a right to a hearing before the IRS Office of Appeals if you have not already received such a notice. We may then seize ("levy") your property or rights to property. Property includes:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits

This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).

If you don't pay the amount due or call us to make payment arrangements, we can file a Notice of Federal Tax Lien on your property at any time, if we haven’t already done so.

If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.

Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.

What if I don't agree or have already taken corrective action?
If you do not agree with this notice, contact us immediately at the number printed at the top of the notice. We will do our best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 05-Mar-2014

The Free Efile Taxes

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