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Free ez form 5. Free ez form   Figuring Your Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Identification NumberF-1 and M-1 visa holders. Free ez form J-1 visa holders. Free ez form Filing StatusResident Aliens Nonresident Aliens Reporting Your Income DeductionsResident Aliens Nonresident Aliens ExemptionsResident Aliens Nonresident Aliens Itemized DeductionsResident Aliens Nonresident Aliens Tax Credits and PaymentsResident Aliens Nonresident Aliens Bona Fide Residents of American Samoa or Puerto Rico Introduction After you have determined your alien status, the source of your income, and if and how that income is taxed in the United States, your next step is to figure your tax. Free ez form The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. Free ez form Resident aliens should get publications, forms, and instructions for U. Free ez form S. Free ez form citizens, because the information for filing returns for resident aliens is generally the same as for U. Free ez form S. Free ez form citizens. Free ez form If you are both a nonresident alien and a resident alien in the same tax year, see chapter 6 for a discussion of dual-status aliens. Free ez form Topics - This chapter discusses: Identification numbers, Filing status, Deductions, Exemptions, Tax credits and payments, and Special rules for bona fide residents of American Samoa and Puerto Rico. Free ez form Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 521 Moving Expenses 526 Charitable Contributions 535 Business Expenses 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) W-7 Application for IRS Individual Taxpayer Identification Number 1040 U. Free ez form S. Free ez form Individual Income Tax Return 1040NR U. Free ez form S. Free ez form Nonresident Alien Income Tax Return 1040NR-EZ U. Free ez form S. Free ez form Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4563 Exclusion of Income for Bona Fide Residents of American Samoa 8959 Additional Medicare Tax See chapter 12 for information about getting these publications and forms. Free ez form Tax Year You must figure your income and file a tax return on the basis of an annual accounting period called a tax year. Free ez form If you have not previously established a fiscal tax year, your tax year is the calendar year. Free ez form A calendar year is 12 consecutive months ending on December 31. Free ez form If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December or a 52–53 week year) and are considered to be a U. Free ez form S. Free ez form resident for any calendar year, you will be treated as a U. Free ez form S. Free ez form resident for any part of your fiscal year that falls within that calendar year. Free ez form Identification Number A taxpayer identification number must be furnished on returns, statements, and other tax-related documents. Free ez form For an individual, this is a social security number (SSN). Free ez form If you do not have and are not eligible to get an SSN, you must apply for an individual taxpayer identification number (ITIN). Free ez form An employer identification number (EIN) is required if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan. Free ez form You must furnish a taxpayer identification number if you are: An alien who has income effectively connected with the conduct of a U. Free ez form S. Free ez form trade or business at any time during the year, An alien who has a U. Free ez form S. Free ez form office or place of business at any time during the year, A nonresident alien spouse treated as a resident, as discussed in chapter 1, or Any other alien who files a tax return, an amended return, or a refund claim (but not information returns). Free ez form Social security number (SSN). Free ez form   Generally, you can get an SSN if you have been lawfully admitted to the United States for permanent residence or under other immigration categories that authorize U. Free ez form S. Free ez form employment. Free ez form   To apply for this number, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration (SSA) office or call the SSA at 1-800-772-1213. Free ez form You can also download Form SS-5 from the SSA's website at www. Free ez form socialsecurity. Free ez form gov/ssnumber/ss5. Free ez form htm. Free ez form You must visit an SSA office in person and submit your Form SS-5 along with original documentation showing your age, identity, immigration status, and authority to work in the United States. Free ez form Generally, you will receive your card about 2 weeks after the SSA has all of the necessary information. Free ez form F-1 and M-1 visa holders. Free ez form    If you are an F-1 or M-1 student, you must also show your Form I-20. Free ez form For more information, see SSA Publication 05-10181, International Students and Social Security Numbers, available online at www. Free ez form socialsecurity. Free ez form gov/pubs/10181. Free ez form html. Free ez form J-1 visa holders. Free ez form   If you are a J-1 exchange visitor, you will also need to show your Form DS-2019. Free ez form For more information, see SSA Publication 05-10107, Foreign Workers and Social Security Numbers, available online at www. Free ez form socialsecurity. Free ez form gov/pubs/10107. Free ez form html. Free ez form Individual taxpayer identification number (ITIN). Free ez form   If you do not have and are not eligible to get an SSN, you must apply for an ITIN. Free ez form For details on how to do so, see Form W-7 and its instructions. Free ez form Allow 6 to 10 weeks for the IRS to notify you of your ITIN. Free ez form If you already have an ITIN, enter it wherever an SSN is required on your tax return. Free ez form   An ITIN is for tax use only. Free ez form It does not entitle you to social security benefits or change your employment or immigration status under U. Free ez form S. Free ez form law. Free ez form   In addition to those aliens who are required to furnish a taxpayer identification number and are not eligible for an SSN, a Form W-7 must be filed for: Alien individuals who are claimed as dependents and are not eligible for an SSN, and Alien spouses who are claimed as exemptions and are not eligible for an SSN. Free ez form Employer identification number (EIN). Free ez form   An individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes. Free ez form To apply for an EIN, file Form SS-4, Application for Employer Identification Number, with the IRS. Free ez form Filing Status The amount of your tax depends on your filing status. Free ez form Your filing status is important in determining whether you can take certain deductions and credits. Free ez form The rules for determining your filing status are different for resident aliens and nonresident aliens. Free ez form Resident Aliens Resident aliens can use the same filing statuses available to U. Free ez form S. Free ez form citizens. Free ez form See your form instructions or Publication 501 for more information on filing status. Free ez form Married filing jointly. Free ez form   Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Free ez form Qualifying widow(er). Free ez form   If your spouse died in 2011 or 2012, you did not remarry before the end of 2013, and you have a dependent child living with you, you may qualify to file as a qualifying widow(er) and use the joint return tax rates. Free ez form This applies only if you could have filed a joint return with your spouse for the year your spouse died. Free ez form Head of household. Free ez form   You can qualify as head of household if you are unmarried or considered unmarried on the last day of the year and you pay more than half the cost of keeping up a home for you and a qualifying person. Free ez form You must be a resident alien for the entire tax year. Free ez form   You are considered unmarried for this purpose if your spouse was a nonresident alien at any time during the year and you do not make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Free ez form Note. Free ez form   Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit. Free ez form In that case, you will not be entitled to the credit. Free ez form See Publication 596 for more information. Free ez form Nonresident Aliens If you are a nonresident alien filing Form 1040NR, you may be able to use one of the filing statuses discussed later. Free ez form If you are filing Form 1040NR-EZ, you can only claim “Single nonresident alien” or “Married nonresident alien” as your filing status. Free ez form Married nonresident alien. Free ez form   Married nonresident aliens who are not married to U. Free ez form S. Free ez form citizens or residents generally must use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when determining the tax on income effectively connected with a U. Free ez form S. Free ez form trade or business. Free ez form Exceptions. Free ez form   Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation Worksheet for single individuals. Free ez form However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a married resident of Canada, Mexico, South Korea, or are a married U. Free ez form S. Free ez form national. Free ez form See the instructions for Form 1040NR or Form 1040NR-EZ to see if you qualify. Free ez form U. Free ez form S. Free ez form national is defined later in this section under Qualifying widow(er) . Free ez form   A nonresident alien generally cannot file as married filing jointly. Free ez form However, a nonresident alien who is married to a U. Free ez form S. Free ez form citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. Free ez form For information on these choices, see chapter 1. Free ez form If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately. Free ez form Qualifying widow(er). Free ez form   You may be eligible to file as a qualifying widow(er) and use the joint return tax rates if all of the following conditions apply. Free ez form You were a resident of Canada, Mexico, or South Korea, or a U. Free ez form S. Free ez form national (defined later). Free ez form Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Free ez form You have a dependent child living with you. Free ez form See the instructions for Form 1040NR for the rules for filing as a qualifying widow(er) with a dependent child. Free ez form   A U. Free ez form S. Free ez form national is an individual who, although not a U. Free ez form S. Free ez form citizen, owes his or her allegiance to the United States. Free ez form U. Free ez form S. Free ez form nationals include American Samoans and Northern Mariana Islanders who chose to become U. Free ez form S. Free ez form nationals instead of U. Free ez form S. Free ez form citizens. Free ez form Head of household. Free ez form   You cannot file as head of household if you are a nonresident alien at any time during the tax year. Free ez form However, if you are married, your spouse can qualify as a head of household if: Your spouse is a resident alien or U. Free ez form S. Free ez form citizen for the entire tax year, You do not choose to be treated as a resident alien, and Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens . Free ez form Note. Free ez form   Even if your spouse is considered unmarried for head of household purposes because you are a nonresident alien, your spouse may still be considered married for purposes of the earned income credit. Free ez form In that case, your spouse will not be entitled to the credit. Free ez form See Publication 596 for more information. Free ez form Estates and trusts. Free ez form   A nonresident alien estate or trust using Form 1040NR must use Tax Rate Schedule W in the Form 1040NR instructions when determining the tax on income effectively connected with a U. Free ez form S. Free ez form trade or business. Free ez form Special rules for aliens from certain U. Free ez form S. Free ez form possessions. Free ez form   A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who is temporarily working in the United States should read Bona Fide Residents of American Samoa or Puerto Rico, at the end of this chapter, for information about special rules. Free ez form Reporting Your Income You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. Free ez form For resident aliens, this includes income from sources both within and outside the United States. Free ez form For nonresident aliens, this includes both income that is effectively connected with a trade or business in the United States (subject to graduated tax rates) and income from U. Free ez form S. Free ez form sources that is not effectively connected (subject to a flat 30% tax rate or lower tax treaty rate). Free ez form Deductions Resident and nonresident aliens can claim similar deductions on their U. Free ez form S. Free ez form tax returns. Free ez form However, nonresident aliens generally can claim only deductions related to income that is effectively connected with their U. Free ez form S. Free ez form trade or business. Free ez form Resident Aliens You can claim the same deductions allowed to U. Free ez form S. Free ez form citizens if you are a resident alien for the entire tax year. Free ez form While the discussion that follows contains some of the same general rules and guidelines that apply to you, it is specifically directed toward nonresident aliens. Free ez form You should get Form 1040 and instructions for more information on how to claim your allowable deductions. Free ez form Nonresident Aliens You can claim deductions to figure your effectively connected taxable income. Free ez form You generally cannot claim deductions related to income that is not connected with your U. Free ez form S. Free ez form business activities. Free ez form Except for personal exemptions, and certain itemized deductions, discussed later, you can claim deductions only to the extent they are connected with your effectively connected income. Free ez form Ordinary and necessary business expenses. Free ez form   You can deduct all ordinary and necessary expenses in the operation of your U. Free ez form S. Free ez form trade or business to the extent they relate to income effectively connected with that trade or business. Free ez form The deduction for travel expenses while in the United States is discussed under Itemized Deductions, later. Free ez form For information about other business expenses, see Publication 535. Free ez form Losses. Free ez form   You can deduct losses resulting from transactions that you entered into for profit and that you were not reimbursed for by insurance, etc. Free ez form to the extent that they relate to income that is effectively connected with a trade or business in the United States. Free ez form Educator expenses. Free ez form   If you were an eligible educator in 2013, you can deduct as an adjustment to income up to $250 in unreimbursed qualified expenses you paid or incurred during 2013 for books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment, and other equipment and materials used in the classroom. Free ez form For more information, see your tax form instructions. Free ez form Individual retirement arrangement (IRA). Free ez form   If you made contributions to a traditional IRA for 2013, you may be able to take an IRA deduction. Free ez form But you must have taxable compensation effectively connected with a U. Free ez form S. Free ez form trade or business to do so. Free ez form A Form 5498 should be sent to you by May 31, 2014, that shows all contributions to your traditional IRA for 2013. Free ez form If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc. Free ez form ) at work or through self-employment, your IRA deduction may be reduced or eliminated. Free ez form But you can still make contributions to a traditional IRA even if you cannot deduct them. Free ez form If you made nondeductible contributions to a traditional IRA for 2013, you must report them on Form 8606, Nondeductible IRAs. Free ez form   For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Free ez form Moving expenses. Free ez form   If you are a nonresident alien temporarily in the United States earning taxable income for performing personal services, you can deduct moving expenses to the United States if you meet both of the following tests. Free ez form You are a full-time employee for at least 39 weeks during the 12 months right after you move, or if you are self-employed, you work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months right after you move. Free ez form Your new job location is at least 50 miles farther (by the shortest commonly traveled route) from your former home than your former job location was. Free ez form If you had no former job location, the new job location must be at least 50 miles from your former home. Free ez form   You cannot deduct the moving expense you have when returning to your home abroad or moving to a foreign job site. Free ez form   Figure your deductible moving expenses to the United States on Form 3903, and deduct them on line 26 of Form 1040NR. Free ez form   For more information on the moving expense deduction, see Publication 521. Free ez form Reimbursements. Free ez form   If your employer reimbursed you for allowable moving expenses under an accountable plan, your employer should have excluded these reimbursements from your income. Free ez form You can only deduct allowable moving expenses that were not reimbursed by your employer or that were reimbursed but the reimbursement was included in your income. Free ez form For more information, see Publication 521. Free ez form Moving expense or travel expense. Free ez form   If you deduct moving expenses to the United States, you cannot also deduct travel expenses (discussed later under Itemized Deductions) while temporarily away from your tax home in a foreign country. Free ez form Moving expenses are based on a change in your principal place of business while travel expenses are based on your temporary absence from your principal place of business. Free ez form Self-employed SEP, SIMPLE, and qualified retirement plans. Free ez form   If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. Free ez form To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U. Free ez form S. Free ez form trade or business. Free ez form   Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. Free ez form Penalty on early withdrawal of savings. Free ez form   You must include in income all effectively connected interest income you receive or that is credited to your account during the year. Free ez form Do not reduce it by any penalty you must pay on an early withdrawal from a time savings account. Free ez form However, if the interest income is effectively connected with your U. Free ez form S. Free ez form trade or business during the year, you can deduct on line 30 of Form 1040NR the amount of the early withdrawal penalty that the banking institution charged. Free ez form Student loan interest expense. Free ez form   If you paid interest on a student loan in 2013, you may be able to deduct up to $2,500 of the interest you paid. Free ez form Generally, you can claim the deduction if all the following requirements are met. Free ez form Your filing status is any filing status except married filing separately. Free ez form Your modified adjusted gross income is less than $75,000. Free ez form No one else is claiming an exemption for you on his or her 2013 tax return. Free ez form You paid interest on a loan taken out only to pay tuition and other qualified higher education expenses for yourself, your spouse, someone who was your dependent when the loan was taken out, or someone you could have claimed as a dependent for the year the loan was taken out except that: The person filed a joint return, The person had gross income that was equal to or more than the exemption amount for that year ($3,900 for 2013), or You could be claimed as a dependent on someone else's return. Free ez form The loan is not from a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. Free ez form The education expenses were paid or incurred within a reasonable period of time before or after the loan was taken out. Free ez form The person for whom the expenses were paid or incurred was an eligible student. Free ez form Use the worksheet in the Form 1040NR or Form 1040NR-EZ instructions to figure the deduction. Free ez form For more information, see Publication 970, Tax Benefits for Education. Free ez form Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Free ez form S. Free ez form citizens. Free ez form However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Free ez form S. Free ez form tax return. Free ez form Resident Aliens You can claim personal exemptions and exemptions for dependents according to the dependency rules for U. Free ez form S. Free ez form citizens. Free ez form You can claim an exemption for your spouse on a separate return if your spouse had no gross income for U. Free ez form S. Free ez form tax purposes and was not the dependent of another taxpayer. Free ez form You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States. Free ez form You can claim an exemption for each person who qualifies as a dependent according to the rules for U. Free ez form S. Free ez form citizens. Free ez form The dependent must be a citizen or national (defined earlier) of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begins. Free ez form Get Publication 501 for more information. Free ez form Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Free ez form See Identification Number, earlier. Free ez form Nonresident Aliens Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption ($3,900 for 2013). Free ez form You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following discussions. Free ez form Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Free ez form See Identification Number, earlier. Free ez form Residents of Mexico or Canada or U. Free ez form S. Free ez form nationals. Free ez form   If you are a resident of Mexico or Canada or a national of the United States (defined earlier), you can also claim a personal exemption for your spouse if your spouse had no gross income for U. Free ez form S. Free ez form tax purposes and cannot be claimed as the dependent on another U. Free ez form S. Free ez form taxpayer's return. Free ez form In addition, you can claim exemptions for your dependents who meet certain tests. Free ez form Residents of Mexico, Canada, or nationals of the United States must use the same rules as U. Free ez form S. Free ez form citizens to determine who is a dependent and for which dependents exemptions can be claimed. Free ez form See Publication 501 for these rules. Free ez form For purposes of these rules, dependents who are U. Free ez form S. Free ez form nationals meet the citizenship test discussed in Publication 501. Free ez form Residents of South Korea. Free ez form   Nonresident aliens who are residents of South Korea may be able to claim exemptions for a spouse and children. Free ez form The income tax treaty with South Korea imposes two additional requirements on South Korean residents: The spouse and all children claimed must live with the alien in the United States at some time during the tax year, and The additional deduction for the exemptions must be prorated based on the ratio of the alien's U. Free ez form S. Free ez form source gross income effectively connected with a U. Free ez form S. Free ez form trade or business for the tax year to the alien's entire income from all sources during the tax year. Free ez form Example. Free ez form Mr. Free ez form Park, a nonresident alien who is a resident of South Korea, lives temporarily in the United States with his wife and two children. Free ez form During the tax year he receives U. Free ez form S. Free ez form compensation of $18,000. Free ez form He also receives $6,000 of income from sources outside the United States that is not effectively connected with his U. Free ez form S. Free ez form trade or business. Free ez form Thus, his total income for the year is $24,000. Free ez form Mr. Free ez form Park meets all requirements for claiming exemptions for his spouse and two children. Free ez form The additional deduction for 2013 is $8,775 figured as follows: $18,000 $24,000 × $11,700* = $8,775               *3 × $3,900 = $11,700   Students and business apprentices from India. Free ez form   Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty may be able to claim exemptions for their spouse and dependents. Free ez form   You can claim an exemption for your spouse if he or she had no gross income during the year and cannot be claimed as a dependent on another U. Free ez form S. Free ez form taxpayer's return. Free ez form   You can claim exemptions 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 ez form S. Free ez form citizens. Free ez form See Publication 501 for these rules. Free ez form   List your spouse and dependents on line 7c of Form 1040NR. Free ez form Enter the total on the appropriate line to the right of line 7c. Free ez form Itemized Deductions Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Free ez form However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Free ez form S. Free ez form trade or business. Free ez form Resident Aliens You can claim the same itemized deductions as U. Free ez form S. Free ez form citizens, using Schedule A of Form 1040. Free ez form These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. Free ez form If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. Free ez form For further information, see Form 1040 and instructions. Free ez form Nonresident Aliens You can deduct certain itemized deductions if you receive income effectively connected with your U. Free ez form S. Free ez form trade or business. Free ez form These deductions include state and local income taxes, charitable contributions to U. Free ez form S. Free ez form organizations, casualty and theft losses, and miscellaneous deductions. Free ez form Use Schedule A of Form 1040NR to claim itemized deductions. Free ez form If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. Free ez form If you are claiming any other itemized deduction, you must file Form 1040NR. Free ez form Standard deduction. Free ez form   Nonresident aliens cannot claim the standard deduction. Free ez form However, see Students and business apprentices from India , next. Free ez form Students and business apprentices from India. Free ez form   A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. Free ez form You can claim the standard deduction provided you do not claim itemized deductions. Free ez form   Use Worksheet 5-1 to figure your standard deduction. Free ez form If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Free ez form State and local income taxes. Free ez form   You can deduct state and local income taxes you paid on income that is effectively connected with a trade or business in the United States. Free ez form If you received a refund or rebate in 2013 of taxes you paid in an earlier year, do not reduce your deduction by that amount. Free ez form Instead, you must include the refund or rebate in income if you deducted the taxes in the earlier year and the deduction reduced your tax. Free ez form See Recoveries in Publication 525 for details on how to figure the amount to include in income. Free ez form Charitable contributions. Free ez form   You can deduct your charitable contributions or gifts to qualified organizations subject to certain limits. Free ez form Qualified organizations include organizations that are religious, charitable, educational, scientific, or literary in nature, or that work to prevent cruelty to children or animals. Free ez form Certain organizations that promote national or international amateur sports competition are also qualified organizations. Free ez form Foreign organizations. Free ez form   Contributions made directly to a foreign organization are not deductible. Free ez form However, you can deduct contributions to a U. Free ez form S. Free ez form organization that transfers funds to a charitable foreign organization if the U. Free ez form S. Free ez form organization controls the use of the funds or if the foreign organization is only an administrative arm of the U. Free ez form S. Free ez form organization. Free ez form   For more information about organizations that qualify to receive charitable contributions, see Publication 526, Charitable Contributions. Free ez form Worksheet 5-1. Free ez form 2013 Standard Deduction Worksheet for Students and Business Apprentices From India Caution. Free ez form If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. Free ez form You cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Free ez form 1 Enter the amount shown below for your filing status. Free ez form           Single or married filing separately—$6,100 Qualifying widow(er)—$12,200 1. Free ez form           2 Can you be claimed as a dependent on someone else's U. Free ez form S. Free ez form income tax return?  No. Free ez form Enter the amount from line 1 on line 4. Free ez form Skip line 3 and go to line 5. Free ez form   Yes. Free ez form Go to line 3. Free ez form         3 Is your earned income* more than $650?           Yes. Free ez form Add $350 to your earned income. Free ez form Enter the total. Free ez form           No. Free ez form Enter $1,000 3. Free ez form       4 Enter the smaller of line 1 or line 3 4. Free ez form   5 If born before January 2, 1949, OR blind, enter $1,200 ($1,500 if single). Free ez form If born before January 2, 1949, AND blind, enter $2,400 ($3,000 if single). Free ez form Otherwise, enter -0- 5. Free ez form   6 Add lines 4 and 5. Free ez form Enter the total here and on Form 1040NR, line 38 (or Form 1040NR-EZ, line 11). Free ez form Print “Standard Deduction Allowed Under U. Free ez form S. Free ez form –India Income Tax Treaty” in the space to the left of these lines. Free ez form This is your standard deduction for 2013. Free ez form 6. Free ez form   *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Free ez form It also includes any amount received as a scholarship that you must include in your income. Free ez form Generally, your earned income is the total of the amount(s) you reported on Form 1040NR, lines 8,12,13, and 19, minus amounts on lines 27 and 31 (or Form 1040NR-EZ, lines 3 and 5, minus any amount on line 8). Free ez form Contributions from which you benefit. Free ez form   If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Free ez form   If you pay more than the fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. Free ez form For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Free ez form Cash contributions. Free ez form   You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written record from the charity. Free ez form The written record must include the name of the charity, date of the contribution, and the amount of the contribution. Free ez form   You may deduct a cash contribution of $250 or more only if you have a written statement from the charitable organization showing: The amount of any money contributed, Whether the organization gave you any goods or services in return for your contribution, and A description and estimate of the value of any goods or services described in (2). Free ez form If you received only intangible religious benefits, the organization must state this, but it does not have to describe or value the benefit. Free ez form Noncash contributions. Free ez form   For contributions not made in cash, the records you must keep depend on the amount of your deduction. Free ez form See Publication 526 for details. Free ez form For example, if you make a noncash contribution and the amount of your deduction is more than $500, you must complete and attach to your tax return Form 8283, Noncash Charitable Contributions. Free ez form If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. Free ez form If your total deduction is over $5,000, you also may have to get appraisals of the values of the property. Free ez form If the donated property is valued at more than $5,000, you must obtain a qualified appraisal. Free ez form You generally must attach to your tax return an appraisal of any property if your deduction for the property is more than $500,000. Free ez form See Form 8283 and its instructions for details. Free ez form Contributions of appreciated property. Free ez form   If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Free ez form However, if you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Free ez form Your basis in the property is generally what you paid for it. Free ez form If you need more information about basis, get Publication 551, Basis of Assets. Free ez form   Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Free ez form For information about these rules, see Publication 526. Free ez form Limit. Free ez form   The amount you can deduct in a tax year is limited in the same way it is for a citizen or resident of the United States. Free ez form For a discussion of limits on charitable contributions and other information, get Publication 526. Free ez form Casualty and theft losses. Free ez form   You can deduct your loss from fire, storm, shipwreck, or other casualty, or theft of property even though your property is not connected with a U. Free ez form S. Free ez form trade or business. Free ez form The property can be personal use property or income-producing property not connected with a U. Free ez form S. Free ez form trade or business. Free ez form The property must be located in the United States at the time of the casualty or theft. Free ez form You can deduct theft losses only in the year in which you discover the loss. Free ez form   The amount of the loss is the fair market value of the property immediately before the casualty or theft less its fair market value immediately after the casualty or theft (but not more than its cost or adjusted basis) less any insurance or other reimbursement. Free ez form The fair market value of property immediately after a theft is considered zero, because you no longer have the property. Free ez form   If your property is covered by insurance, you should file a timely insurance claim for reimbursement. Free ez form If you do not, you cannot deduct this loss as a casualty or theft loss. Free ez form   Figure your deductible casualty and theft losses on Form 4684, Casualties and Thefts. Free ez form Losses from personal use property. Free ez form    You cannot deduct the first $100 of each casualty or theft loss to property held for personal use. Free ez form You can deduct only the total of these losses for the year (reduced by the $100 limit) that is more than 10% of your adjusted gross income (line 37, Form 1040NR) for the year. Free ez form Losses from income-producing property. Free ez form   These losses are not subject to the limitations that apply to personal use property. Free ez form Use Section B of Form 4684 to figure your deduction for these losses. Free ez form Job expenses and other miscellaneous deductions. Free ez form   You can deduct job expenses, such as allowable unreimbursed travel expenses (discussed next), and other miscellaneous deductions. Free ez form Generally, the allowable deductions must be related to effectively connected income. Free ez form Deductible expenses include: Union dues, Safety equipment and small tools needed for your job, Dues to professional organizations, Subscriptions to professional journals, Tax return preparation fees, and Casualty and theft losses of property used in performing services as an employee (employee property). Free ez form   Most miscellaneous itemized deductions are deductible only if they are more than 2% of your adjusted gross income (line 37, Form 1040NR). Free ez form For more information on miscellaneous deductions, see the instructions for Form 1040NR. Free ez form Travel expenses. Free ez form   You may be able to deduct your ordinary and necessary travel expenses while you are temporarily performing personal services in the United States. Free ez form Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Free ez form You must be able to show you were present in the United States on an activity that required your temporary absence from your regular place of work. Free ez form   For example, if you have established a “tax home” through regular employment in a foreign country, and intend to return to similar employment in the same country at the end of your temporary stay in the United States, you can deduct reasonable travel expenses you paid. Free ez form You cannot deduct travel expenses for other members of your family or party. Free ez form Deductible travel expenses. Free ez form   If you qualify, you can deduct your expenses for: Transportation—airfare, local transportation, including train, bus, etc. Free ez form , Lodging—rent paid, utilities (do not include telephone), hotel or motel room expenses, and Meal expenses—actual expenses allowed if you keep records of the amounts, or, if you do not wish to keep detailed records, you are generally allowed a standard meal allowance amount depending on the date and area of your travel. Free ez form You generally can deduct only 50% of unreimbursed meal expenses. Free ez form The standard meal allowance rates for high-cost areas are available at www. Free ez form gsa. Free ez form gov/perdiem. Free ez form The rates for other areas are in Publication 463. Free ez form   Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 7 of Schedule A (Form 1040NR). Free ez form Expenses allocable to U. Free ez form S. Free ez form tax-exempt income. Free ez form   You cannot deduct an expense, or part of an expense, that is allocable to U. Free ez form S. Free ez form tax-exempt income, including income exempt by tax treaty. Free ez form Example. Free ez form Irina Oak, a citizen of Poland, resided in the United States for part of the year to acquire business experience from a U. Free ez form S. Free ez form company. Free ez form During her stay in the United States, she received a salary of $8,000 from her Polish employer. Free ez form She received no other U. Free ez form S. Free ez form source income. Free ez form She spent $3,000 on travel expenses, of which $1,000 were for meals. Free ez form None of these expenses were reimbursed. Free ez form Under the tax treaty with Poland, $5,000 of her salary is exempt from U. Free ez form S. Free ez form income tax. Free ez form In filling out Form 2106-EZ, she must reduce her deductible meal expenses by half ($500). Free ez form She must reduce the remaining $2,500 of travel expenses by 62. Free ez form 5% ($1,563) because 62. Free ez form 5% ($5,000 ÷ $8,000) of her salary is exempt from tax. Free ez form She enters the remaining total of $937 on line 7 of Schedule A (Form 1040NR). Free ez form She completes the remaining lines according to the instructions for Schedule A. Free ez form More information. Free ez form   For more information about deductible expenses, reimbursements, and recordkeeping, get Publication 463. Free ez form Tax Credits and Payments This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and payments for nonresident aliens. Free ez form Resident Aliens Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U. Free ez form S. Free ez form citizens. Free ez form The following items are some of the credits you may be able to claim. Free ez form Foreign tax credit. Free ez form   You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign country on foreign source income. Free ez form You cannot claim a credit for taxes paid or accrued on excluded foreign earned income. Free ez form To claim a credit for income taxes paid or accrued to a foreign country, you generally will file Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), with your Form 1040. Free ez form   For more information, get Publication 514, Foreign Tax Credit for Individuals. Free ez form Child and dependent care credit. Free ez form   You may be able to take this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Free ez form Generally, you must be able to claim an exemption for your dependent. Free ez form   For more information, get Publication 503, Child and Dependent Care Expenses, and Form 2441, Child and Dependent Care Expenses. Free ez form Credit for the elderly or the disabled. Free ez form   You may qualify for this credit if you are 65 or older or if you retired on permanent and total disability. Free ez form For more information on this credit, get Publication 524, Credit for the Elderly or the Disabled, and Schedule R (Form 1040A or 1040). Free ez form Education credits. Free ez form   You may qualify for these credits if you paid qualified education expenses for yourself, your spouse, or your dependent. Free ez form There are two education credits: the American Opportunity Credit and the lifetime learning credit. Free ez form You cannot claim these credits if you are married filing separately. Free ez form Use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to figure the credit. Free ez form For more information, see Publication 970. Free ez form Retirement savings contributions credit. Free ez form   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Free ez form You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than: $59,000, if your filing status is married filing jointly, $44,250, if your filing status is head of household, or $29,500, if your filing status is single, married filing separately, or qualifying widow(er). Free ez form Use Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the credit. Free ez form For more information, see Publication 590. Free ez form Child tax credit. Free ez form   You may be able to take this credit if you have a qualifying child. Free ez form   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Free ez form Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Free ez form Is a U. Free ez form S. Free ez form citizen, a U. Free ez form S. Free ez form national, or a resident alien. Free ez form Did not provide over half of his or her own support for 2013. Free ez form Lived with you more than half of 2013. Free ez form Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Free ez form Is claimed as a dependent on your return. Free ez form An adopted child is always treated as your own child. Free ez form An adopted child includes a child lawfully placed with you for legal adoption. Free ez form   See your form instructions for additional details. Free ez form Adoption credit. Free ez form   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Free ez form This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Free ez form To claim the adoption credit, file Form 8839, Qualified Adoption Expenses, with your Form 1040. Free ez form Earned income credit. Free ez form   You may qualify for an earned income credit of up to $3,250 if a child lived with you in the United States and your earned income and adjusted gross income were each less than $37,870 ($43,210 if married filing jointly). Free ez form If two children lived with you in the United States and your earned income and adjusted gross income were each less than $43,038 ($48,378 if married filing jointly), your credit could be as much as $5,372. Free ez form If three or more children lived with you in the United States and your earned income and adjusted gross income were each less than $46,227 ($51,567 if married filing jointly), your credit could be as much as $6,044. Free ez form If you do not have a qualifying child and your earned income and adjusted gross income were each less than $14,340 ($19,680 if married filing jointly), your credit could be as much as $487. Free ez form You cannot claim the earned income credit if your filing status is married filing separately. Free ez form    You and your spouse (if filing a joint return) and any qualifying child must have valid SSNs to claim this credit. Free ez form You cannot claim the credit using an ITIN. Free ez form If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Free ez form An example of a federally funded benefit is Medicaid. Free ez form If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Free ez form S. Free ez form citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Free ez form Other information. Free ez form   There are other eligibility rules that are not discussed here. Free ez form For more information, get Publication 596, Earned Income Credit. Free ez form Nonresident Aliens You can claim some of the same credits that resident aliens can claim. Free ez form You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income. Free ez form Credits Credits are allowed only if you receive effectively connected income. Free ez form You may be able to claim some of the following credits. Free ez form Foreign tax credit. Free ez form   If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U. Free ez form S. Free ez form possession on that income. Free ez form   If you do not have foreign source income effectively connected with a U. Free ez form S. Free ez form trade or business, you cannot claim credits against your U. Free ez form S. Free ez form tax for taxes paid or accrued to a foreign country or U. Free ez form S. Free ez form possession. Free ez form   You cannot take any credit for taxes imposed by a foreign country or U. Free ez form S. Free ez form possession on your U. Free ez form S. Free ez form source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. Free ez form   If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. Free ez form See Publication 514 for more information. Free ez form Child and dependent care credit. Free ez form   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Free ez form Generally, you must be able to claim an exemption for your dependent. Free ez form   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Free ez form S. Free ez form citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). Free ez form   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. Free ez form Earned income generally means wages, salaries, and professional fees for personal services performed. Free ez form   For more information, get Publication 503. Free ez form Education credits. Free ez form   If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Free ez form However, if you are married and choose to file a joint return with a U. Free ez form S. Free ez form citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. Free ez form Retirement savings contributions credit. Free ez form   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Free ez form You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. Free ez form Use Form 8880 to figure the credit. Free ez form For more information, see Publication 590. Free ez form Child tax credit. Free ez form   You may be able to take this credit if you have a qualifying child. Free ez form   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Free ez form Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Free ez form Is a U. Free ez form S. Free ez form citizen, a U. Free ez form S. Free ez form national, or a resident alien. Free ez form Did not provide over half of his or her own support for 2013. Free ez form Lived with you more than half of 2013. Free ez form Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Free ez form Is claimed as a dependent on your return. Free ez form An adopted child is always treated as your own child. Free ez form An adopted child includes a child lawfully placed with you for legal adoption. Free ez form   See your form instructions for additional details. Free ez form Adoption credit. Free ez form   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Free ez form This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Free ez form To claim the adoption credit, file Form 8839 with your Form 1040NR. Free ez form   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Free ez form S. Free ez form citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). Free ez form Credit for prior year minimum tax. Free ez form   If you paid alternative minimum tax in a prior year, get Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, to see if you qualify for this credit. Free ez form Earned income credit. Free ez form   If you are a nonresident alien for any part of the tax year, you generally cannot get the earned income credit. Free ez form However, if you are married and choose to file a joint return with a U. Free ez form S. Free ez form citizen or resident spouse as discussed in chapter 1, you may be eligible for the credit. Free ez form    You, your spouse, and any qualifying child must have valid SSNs to claim this credit. Free ez form You cannot claim the credit using an ITIN. Free ez form If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Free ez form An example of a federally funded benefit is Medicaid. Free ez form If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Free ez form S. Free ez form citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Free ez form   See Publication 596 for more information on the credit. Free ez form Tax Withheld You can claim the tax withheld during the year as a payment against your U. Free ez form S. Free ez form tax. Free ez form You claim it on line 61 of Form 1040NR or on line 18 of Form 1040NR-EZ. Free ez form The tax withheld reduces any tax you owe with Form 1040NR or Form 1040NR-EZ. Free ez form Withholding from wages. Free ez form   Any federal income tax withheld from your wages during the tax year while you were a nonresident alien is allowed as a payment against your U. Free ez form S. Free ez form income tax liability for the same year. Free ez form You can claim the income tax withheld whether or not you were engaged in a trade or business in the United States during the year, and whether or not the wages (or any other income) were connected with a trade or business in the United States. Free ez form Excess social security tax withheld. Free ez form   If you have two or more employers, you may be able to claim a credit against your U. Free ez form S. Free ez form income tax liability for social security tax withheld in excess of the maximum required. Free ez form See Social Security and Medicare Taxes in chapter 8 for more information. Free ez form Additional Medicare Tax. Free ez form   Your employer is responsible for withholding the 0. Free ez form 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. Free ez form If you do not owe Additional Medicare Tax, 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. Free ez form Tax paid on undistributed long-term capital gains. Free ez form   If you are a shareholder in a mutual fund (or other regulated investment company) or real estate investment trust, you can claim a credit for your share of any taxes paid by the company on its undistributed long-term capital gains. Free ez form You will receive information on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which you must attach to your return. Free ez form Tax withheld at the source. Free ez form   You can claim as a payment any tax withheld at the source on investment and other fixed or determinable annual or periodic income paid to you. Free ez form Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income. Free ez form Wage or salary payments can be fixed or determinable income to you, but usually are subject to withholding as discussed above. Free ez form Taxes on fixed or determinable income are withheld at a 30% rate or at a lower treaty rate. Free ez form Tax withheld on partnership income. Free ez form   If you are a foreign partner in a partnership, the partnership will withhold tax on your share of effectively connected taxable income from the partnership. Free ez form 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 ez form A partnership that is publicly traded may withhold on your actual distributions of effectively connected income. Free ez form In this case, the partnership will give you a statement on Form 1042-S. Free ez form Claim the tax withheld as a payment on line 61b or 61d of Form 1040NR, as appropriate. Free ez form Claiming tax withheld on your return. Free ez form   When you fill out your tax return, take extra care to enter the correct amount of any tax withheld shown on your information documents. Free ez form The following table lists some of the more common information documents and shows where to find the amount of tax withheld. Free ez form Form number Location  of tax  withheld RRB-1042S Box 12 SSA-1042S Box 9 W-2 Box 2 W-2c Box 2 1042-S Box 9 8805 Line 10 8288-A Box 2 Bona Fide Residents of American Samoa or Puerto Rico If you are a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you generally are taxed the same as resident aliens. Free ez form You should file Form 1040 and report all income from sources both in and outside the United States. Free ez form However, you can exclude the income discussed in the following paragraphs. Free ez form For tax purposes other than reporting income, however, you will be treated as a nonresident alien. Free ez form For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Free ez form There are also limits on what deductions and credits are allowed. Free ez form See Nonresident Aliens under Deductions , Itemized Deductions , and Tax Credits and Payments in this chapter. Free ez form Residents of Puerto Rico. Free ez form   If you are a bona fide resident of Puerto Rico for the entire year, you can exclude from gross income all income from sources in Puerto Rico (other than amounts for services performed as an employee of the United States or any of its agencies). Free ez form   If you report income on a calendar year basis and you do not have wages subject to withholding, file your return and pay your tax by June 15. Free ez form You must also make your first payment of estimated tax by June 15. Free ez form You cannot file a joint income tax return or make joint payments of estimated tax. Free ez form However, if you are married to a U. Free ez form S. Free ez form citizen or resident, see Nonresident Spouse Treated as a Resident in chapter 1. Free ez form   If you earn wages subject to withholding, your U. Free ez form S. Free ez form income tax return is due by April 15. Free ez form Your first payment of estimated tax is also due by April 15. Free ez form For information on withholding and estimated tax, see chapter 8 . Free ez form Residents of American Samoa. Free ez form   If you are a bona fide resident of American Samoa for the entire year, you can exclude from gross income all income from sources in American Samoa (other than amounts for services performed as an employee of the U. Free ez form S. Free ez form government or any of its agencies). Free ez form An employee of the American Samoan government is not considered an employee of the U. Free ez form S. Free ez form government or any of its agencies for purposes of the exclusion. Free ez form For more information about this exclusion, get Form 4563 and Publication 570, Tax Guide for Individuals With Income From U. Free ez form S. Free ez form Possessions. Free ez form Prev  Up  Next   Home   More Online Publications
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Animal and Plant Health Inspection Service

The Animal and Plant Health Inspection Service protects and promotes U.S. agricultural health, regulates genetically engineered organisms, administers the Animal Welfare Act, and manages wildlife damage.

Contact the Agency or Department

Website: Animal and Plant Health Inspection Service

Contact In-Person: Regional Offices

Address: Animal and Plant Health Inspection Service
Department of Agriculture

Washington, DC 20250

Phone Number: (202) 720-2511

Forms: Animal and Plant Health Inspection Service Forms

The Free Ez Form

Free ez form 7. Free ez form   Costs You Can Deduct or Capitalize Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Carrying Charges Research and Experimental CostsProduct. Free ez form Costs not included. Free ez form Intangible Drilling Costs Exploration CostsPartnerships and S corporations. Free ez form Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal CostsOther barrier removals. Free ez form Film and Television Production Costs What's New Film and television productions costs. Free ez form  The election to expense film and television production costs does not apply to productions that begin after December 31, 2013. Free ez form See Film and Television Production Costs , later. Free ez form Introduction This chapter discusses costs you can elect to deduct or capitalize. Free ez form You generally deduct a cost as a current business expense by subtracting it from your income in either the year you incur it or the year you pay it. Free ez form If you capitalize a cost, you may be able to recover it over a period of years through periodic deductions for amortization, depletion, or depreciation. Free ez form When you capitalize a cost, you add it to the basis of property to which it relates. Free ez form A partnership, corporation, estate, or trust makes the election to deduct or capitalize the costs discussed in this chapter except for exploration costs for mineral deposits. Free ez form Each individual partner, shareholder, or beneficiary elects whether to deduct or capitalize exploration costs. Free ez form You may be subject to the alternative minimum tax (AMT) if you deduct research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. Free ez form For more information on the alternative minimum tax, see the instructions for the following forms. Free ez form Form 6251, Alternative Minimum Tax—Individuals. Free ez form Form 4626, Alternative Minimum Tax—Corporations. Free ez form Topics - This chapter discusses: Carrying charges Research and experimental costs Intangible drilling costs Exploration costs Development costs Circulation costs Qualified disaster expenses Business start-up and organizational costs Reforestation costs Retired asset removal costs Barrier removal costs Film and television production costs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 3468 Investment Credit 8826 Disabled Access Credit See chapter 12 for information about getting publications and forms. Free ez form Carrying Charges Carrying charges include the taxes and interest you pay to carry or develop real property or to carry, transport, or install personal property. Free ez form Certain carrying charges must be capitalized under the uniform capitalization rules. Free ez form (For information on capitalization of interest, see chapter 4 . Free ez form ) You can elect to capitalize carrying charges not subject to the uniform capitalization rules, but only if they are otherwise deductible. Free ez form You can elect to capitalize carrying charges separately for each project you have and for each type of carrying charge. Free ez form For unimproved and unproductive real property, your election is good for only 1 year. Free ez form You must decide whether to capitalize carrying charges each year the property remains unimproved and unproductive. Free ez form For other real property, your election to capitalize carrying charges remains in effect until construction or development is completed. Free ez form For personal property, your election is effective until the date you install or first use it, whichever is later. Free ez form How to make the election. Free ez form   To make the election to capitalize a carrying charge, attach a statement to your original tax return for the year the election is to be effective indicating which charges you are electing to capitalize. Free ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free ez form Attach the statement to the amended return and write “Filed pursuant to section 301. Free ez form 9100-2” on the statement. Free ez form File the amended return at the same address you filed the original return. Free ez form Research and Experimental Costs The costs of research and experimentation are generally capital expenses. Free ez form However, you can elect to deduct these costs as a current business expense. Free ez form Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change. Free ez form If you meet certain requirements, you may elect to defer and amortize research and experimental costs. Free ez form For information on electing to defer and amortize these costs, see Research and Experimental Costs in chapter 8. Free ez form Research and experimental costs defined. Free ez form   Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. Free ez form Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. Free ez form Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement. Free ez form      The costs of obtaining a patent, including attorneys' fees paid or incurred in making and perfecting a patent application, are research and experimental costs. Free ez form However, costs paid or incurred to obtain another's patent are not research and experimental costs. Free ez form Product. Free ez form   The term “product” includes any of the following items. Free ez form Formula. Free ez form Invention. Free ez form Patent. Free ez form Pilot model. Free ez form Process. Free ez form Technique. Free ez form Property similar to the items listed above. Free ez form It also includes products used by you in your trade or business or held for sale, lease, or license. Free ez form Costs not included. Free ez form   Research and experimental costs do not include expenses for any of the following activities. Free ez form Advertising or promotions. Free ez form Consumer surveys. Free ez form Efficiency surveys. Free ez form Management studies. Free ez form Quality control testing. Free ez form Research in connection with literary, historical, or similar projects. Free ez form The acquisition of another's patent, model, production, or process. Free ez form When and how to elect. Free ez form   You make the election to deduct research and experimental costs by deducting them on your tax return for the year in which you first pay or incur research and experimental costs. Free ez form If you do not make the election to deduct research and experimental costs in the first year in which you pay or incur the costs, you can deduct the costs in a later year only with approval from the IRS. Free ez form Deducting or Amortizing Research and Experimentation Costs IF you . Free ez form . Free ez form . Free ez form THEN . Free ez form . Free ez form . Free ez form Elect to deduct research and experimental costs as a current business expense Deduct all research and experimental costs in the first year you pay or incur the costs and all later years. Free ez form Do not deduct research and experimental costs as a current business expense If you meet the requirements, amortize them over at least 60 months, starting with the month you first receive an economic benefit from the research. Free ez form See Research and Experimental Costs in chapter 8. Free ez form Research credit. Free ez form   If you pay or incur qualified research expenses, you may be able to take the research credit. Free ez form For more information see Form 6765, Credit for Increasing Research Activities and its instructions. Free ez form Intangible Drilling Costs The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. Free ez form You can usually recover them through depreciation or depletion. Free ez form However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. Free ez form These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest. Free ez form You can deduct only costs for drilling or preparing a well for the production of oil, gas, or geothermal steam or hot water. Free ez form You can elect to deduct only the costs of items with no salvage value. Free ez form These include wages, fuel, repairs, hauling, and supplies related to drilling wells and preparing them for production. Free ez form Your cost for any drilling or development work done by contractors under any form of contract is also an IDC. Free ez form However, see Amounts paid to contractor that must be capitalized , later. Free ez form You can also elect to deduct the cost of drilling exploratory bore holes to determine the location and delineation of offshore hydrocarbon deposits if the shaft is capable of conducting hydrocarbons to the surface on completion. Free ez form It does not matter whether there is any intent to produce hydrocarbons. Free ez form If you do not elect to deduct your IDCs as a current business expense, you can elect to deduct them over the 60-month period beginning with the month they were paid or incurred. Free ez form Amounts paid to contractor that must be capitalized. Free ez form   Amounts paid to a contractor must be capitalized if they are either: Amounts properly allocable to the cost of depreciable property, or Amounts paid only out of production or proceeds from production if these amounts are depletable income to the recipient. Free ez form How to make the election. Free ez form   You elect to deduct IDCs as a current business expense by taking the deduction on your income tax return for the first tax year you have eligible costs. Free ez form No formal statement is required. Free ez form If you file Schedule C (Form 1040), enter these costs under “Other expenses. Free ez form ”   For oil and gas wells, your election is binding for the year it is made and for all later years. Free ez form For geothermal wells, your election can be revoked by the filing of an amended return on which you do not take the deduction. Free ez form You can file the amended return for the year up to the normal time of expiration for filing a claim for credit or refund, generally, within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. Free ez form Energy credit for costs of geothermal wells. Free ez form   If you capitalize the drilling and development costs of geothermal wells that you place in service during the tax year, you may be able to claim a business energy credit. Free ez form See the Instructions for Form 3468 for more information. Free ez form Nonproductive well. Free ez form   If you capitalize your IDCs, you have another option if the well is nonproductive. Free ez form You can deduct the IDCs of the nonproductive well as an ordinary loss. Free ez form You must indicate and clearly state your election on your tax return for the year the well is completed. Free ez form Once made, the election for oil and gas wells is binding for all later years. Free ez form You can revoke your election for a geothermal well by filing an amended return that does not claim the loss. Free ez form Costs incurred outside the United States. Free ez form   You cannot deduct as a current business expense all the IDCs paid or incurred for an oil, gas, or geothermal well located outside the United States. Free ez form However, you can elect to include the costs in the adjusted basis of the well to figure depletion or depreciation. Free ez form If you do not make this election, you can deduct the costs over the 10-year period beginning with the tax year in which you paid or incurred them. Free ez form These rules do not apply to a nonproductive well. Free ez form Exploration Costs The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. Free ez form You recover these costs through depletion as the mineral is removed from the ground. Free ez form However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells). Free ez form How to make the election. Free ez form   You elect to deduct exploration costs by taking the deduction on your income tax return, or on an amended income tax return, for the first tax year for which you wish to deduct the costs paid or incurred during the tax year. Free ez form Your return must adequately describe and identify each property or mine, and clearly state how much is being deducted for each one. Free ez form The election applies to the tax year you make this election and all later tax years. Free ez form Partnerships and S corporations. Free ez form   Each partner, not the partnership, elects whether to capitalize or to deduct that partner's share of exploration costs. Free ez form Each shareholder, not the S corporation, elects whether to capitalize or to deduct that shareholder's share of exploration costs. Free ez form Reduced corporate deductions for exploration costs. Free ez form   A corporation (other than an S corporation) can deduct only 70% of its domestic exploration costs. Free ez form It must capitalize the remaining 30% of costs and amortize them over the 60-month period starting with the month the exploration costs are paid or incurred. Free ez form A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. Free ez form For more information on this method of amortization, see Internal Revenue Code section 59(e). Free ez form   The 30% the corporation capitalizes cannot be added to its basis in the property to figure cost depletion. Free ez form However, the amount amortized is treated as additional depreciation and is subject to recapture as ordinary income on a disposition of the property. Free ez form See Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. Free ez form   These rules also apply to the deduction of development costs by corporations. Free ez form See Development Costs , later. Free ez form Recapture of exploration expenses. Free ez form   When your mine reaches the producing stage, you must recapture any exploration costs you elected to deduct. Free ez form Use either of the following methods. Free ez form Method 1—Include the deducted costs in gross income for the tax year the mine reaches the producing stage. Free ez form Your election must be clearly indicated on the return. Free ez form Increase your adjusted basis in the mine by the amount included in income. Free ez form Generally, you must elect this recapture method by the due date (including extensions) of your return. Free ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free ez form Make the election on your amended return and write “Filed pursuant to section 301. Free ez form 9100-2” on the form where you are including the income. Free ez form File the amended return at the same address you filed the original return. Free ez form Method 2—Do not claim any depletion deduction for the tax year the mine reaches the producing stage and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. Free ez form   You also must recapture deducted exploration costs if you receive a bonus or royalty from mine property before it reaches the producing stage. Free ez form Do not claim any depletion deduction for the tax year you receive the bonus or royalty and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. Free ez form   Generally, if you dispose of the mine before you have fully recaptured the exploration costs you deducted, recapture the balance by treating all or part of your gain as ordinary income. Free ez form Under these circumstances, you generally treat as ordinary income all of your gain if it is less than your adjusted exploration costs with respect to the mine. Free ez form If your gain is more than your adjusted exploration costs, treat as ordinary income only a part of your gain, up to the amount of your adjusted exploration costs. Free ez form Foreign exploration costs. Free ez form   If you pay or incur exploration costs for a mine or other natural deposit located outside the United States, you cannot deduct all the costs in the current year. Free ez form You can elect to include the costs (other than for an oil, gas, or geothermal well) in the adjusted basis of the mineral property to figure cost depletion. Free ez form (Cost depletion is discussed in chapter 9 . Free ez form ) If you do not make this election, you must deduct the costs over the 10-year period beginning with the tax year in which you pay or incur them. Free ez form These rules also apply to foreign development costs. Free ez form Development Costs You can deduct costs paid or incurred during the tax year for developing a mine or any other natural deposit (other than an oil or gas well) located in the United States. Free ez form These costs must be paid or incurred after the discovery of ores or minerals in commercially marketable quantities. Free ez form Development costs also include depreciation on improvements used in the development of ores or minerals and costs incurred for you by a contractor. Free ez form Development costs do not include the costs for the acquisition or improvement of depreciable property. Free ez form Instead of deducting development costs in the year paid or incurred, you can elect to treat the cost as deferred expenses and deduct them ratably as the units of produced ores or minerals benefited by the expenses are sold. Free ez form This election applies each tax year to expenses paid or incurred in that year. Free ez form Once made, the election is binding for the year and cannot be revoked for any reason. Free ez form How to make the election. Free ez form   The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. Free ez form Generally, you must make the election by the due date of the return (including extensions). Free ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Free ez form 9100-2. Free ez form ” File the amended return at the same address you filed the original return. Free ez form Foreign development costs. Free ez form   The rules discussed earlier for foreign exploration costs apply to foreign development costs. Free ez form Reduced corporate deductions for development costs. Free ez form   The rules discussed earlier for reduced corporate deductions for exploration costs also apply to corporate deductions for development costs. Free ez form Circulation Costs A publisher can deduct as a current business expense the costs of establishing, maintaining, or increasing the circulation of a newspaper, magazine, or other periodical. Free ez form For example, a publisher can deduct the cost of hiring extra employees for a limited time to get new subscriptions through telephone calls. Free ez form Circulation costs are deductible even if they normally would be capitalized. Free ez form This rule does not apply to the following costs that must be capitalized. Free ez form The purchase of land or depreciable property. Free ez form The acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical, including the purchase of another publisher's list of subscribers. Free ez form Other treatment of circulation costs. Free ez form   If you do not want to deduct circulation costs as a current business expense, you can elect one of the following ways to recover these costs. Free ez form Capitalize all circulation costs that are properly chargeable to a capital account (see chapter 1 ). Free ez form Amortize circulation costs over the 3-year period beginning with the tax year they were paid or incurred. Free ez form How to make the election. Free ez form   You elect to capitalize circulation costs by attaching a statement to your return for the first tax year the election applies. Free ez form Your election is binding for the year it is made and for all later years, unless you get IRS approval to revoke it. Free ez form Business Start-Up and Organizational Costs Business start-up and organizational costs are generally capital expenditures. Free ez form However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. Free ez form The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Free ez form Any remaining costs must be amortized. Free ez form For information about amortizing start-up and organizational costs, see chapter 8 . Free ez form Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. Free ez form Organizational costs include the costs of creating a corporation. Free ez form For more information on start-up and organizational costs, see chapter 8 . Free ez form How to make the election. Free ez form   You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. Free ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Free ez form 9100-2. Free ez form ” File the amended return at the same address you filed the original return. Free ez form The election applies when computing taxable income for the current tax year and all subsequent years. Free ez form Reforestation Costs Reforestation costs are generally capital expenditures. Free ez form However, you can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. Free ez form The remaining costs can be amortized over an 84-month period. Free ez form For information about amortizing reforestation costs, see chapter 8 . Free ez form Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. Free ez form Qualified timber property is property that contains trees in significant commercial quantities. Free ez form See chapter 8 for more information on qualifying reforestation costs and qualified timber property. Free ez form If you elect to deduct qualified reforestation costs, create and maintain separate timber accounts for each qualified timber property and include all reforestation costs and the dates each was applied. Free ez form Do not include this qualified timber property in any account (for example, depletion block) for which depletion is allowed. Free ez form How to make the election. Free ez form   You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. Free ez form If Form T (Timber), Forest Activities Schedule, is required, complete Part IV of Form T. Free ez form If Form T is not required, attach a statement containing the following information for each qualified timber property for which an election is being made. Free ez form The unique stand identification numbers. Free ez form The total number of acres reforested during the tax year. Free ez form The nature of the reforestation treatments. Free ez form The total amounts of qualified reforestation expenditures eligible to be amortized or deducted. Free ez form   If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Free ez form 9100-2. Free ez form ” File the amended return at the same address you filed the original return. Free ez form The election applies when computing taxable income for the current tax year and all subsequent years. Free ez form   For additional information on reforestation costs, see chapter 8 . Free ez form Recapture. Free ez form   This deduction may have to be recaptured as ordinary income under section 1245 when you sell or otherwise dispose of the property that would have received an addition to basis if you had not elected to deduct the expenditure. Free ez form For more information on recapturing the deduction, see Depreciation Recapture in Publication 544. Free ez form Retired Asset Removal Costs If you retire and remove a depreciable asset in connection with the installation or production of a replacement asset, you can deduct the costs of removing the retired asset. Free ez form However, if you replace a component (part) of a depreciable asset, capitalize the removal costs if the replacement is an improvement and deduct the costs if the replacement is a repair. Free ez form Barrier Removal Costs The cost of an improvement to a business asset is normally a capital expense. Free ez form However, you can elect to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who are disabled or elderly. Free ez form You must own or lease the facility or vehicle for use in connection with your trade or business. Free ez form A facility is all or any part of buildings, structures, equipment, roads, walks, parking lots, or similar real or personal property. Free ez form A public transportation vehicle is a vehicle, such as a bus or railroad car, that provides transportation service to the public (including service for your customers, even if you are not in the business of providing transportation services). Free ez form You cannot deduct any costs that you paid or incurred to completely renovate or build a facility or public transportation vehicle or to replace depreciable property in the normal course of business. Free ez form Deduction limit. Free ez form   The most you can deduct as a cost of removing barriers to the disabled and the elderly for any tax year is $15,000. Free ez form However, you can add any costs over this limit to the basis of the property and depreciate these excess costs. Free ez form Partners and partnerships. Free ez form   The $15,000 limit applies to a partnership and also to each partner in the partnership. Free ez form A partner can allocate the $15,000 limit in any manner among the partner's individually incurred costs and the partner's distributive share of partnership costs. Free ez form If the partner cannot deduct the entire share of partnership costs, the partnership can add any costs not deducted to the basis of the improved property. Free ez form   A partnership must be able to show that any amount added to basis was not deducted by the partner and that it was over a partner's $15,000 limit (as determined by the partner). Free ez form If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership's costs in full. Free ez form Example. Free ez form Emilio Azul's distributive share of ABC partnership's deductible expenses for the removal of architectural barriers was $14,000. Free ez form Emilio had $12,000 of similar expenses in his sole proprietorship. Free ez form He elected to deduct $7,000 of them. Free ez form Emilio allocated the remaining $8,000 of the $15,000 limit to his share of ABC's expenses. Free ez form Emilio can add the excess $5,000 of his own expenses to the basis of the property used in his business. Free ez form Also, if ABC can show that Emilio could not deduct $6,000 ($14,000 – $8,000) of his share of the partnership's expenses because of how Emilio applied the limit, ABC can add $6,000 to the basis of its property. Free ez form Qualification standards. Free ez form   You can deduct your costs as a current expense only if the barrier removal meets the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. Free ez form You can view the Americans with Disabilities Act at www. Free ez form ada. Free ez form gov/pubs/ada. Free ez form htm. Free ez form   The following is a list of some architectural barrier removal costs that can be deducted. Free ez form Ground and floor surfaces. Free ez form Walks. Free ez form Parking lots. Free ez form Ramps. Free ez form Entrances. Free ez form Doors and doorways. Free ez form Stairs. Free ez form Floors. Free ez form Toilet rooms. Free ez form Water fountains. Free ez form Public telephones. Free ez form Elevators. Free ez form Controls. Free ez form Signage. Free ez form Alarms. Free ez form Protruding objects. Free ez form Symbols of accessibility. Free ez form You can find the ADA guidelines and requirements for architectural barrier removal at www. Free ez form usdoj. Free ez form gov/crt/ada/reg3a. Free ez form html. Free ez form   The costs for removal of transportation barriers from rail facilities, buses, and rapid and light rail vehicles are deductible. Free ez form You can find the guidelines and requirements for transportation barrier removal at www. Free ez form fta. Free ez form dot. Free ez form gov. Free ez form   Also, you can access the ADA website at www. Free ez form ada. Free ez form gov for additional information. Free ez form Other barrier removals. Free ez form   To be deductible, expenses of removing any barrier not covered by the above standards must meet all three of the following tests. Free ez form The removed barrier must be a substantial barrier to access or use of a facility or public transportation vehicle by persons who have a disability or are elderly. Free ez form The removed barrier must have been a barrier for at least one major group of persons who have a disability or are elderly (such as people who are blind, deaf, or wheelchair users). Free ez form The barrier must be removed without creating any new barrier that significantly impairs access to or use of the facility or vehicle by a major group of persons who have a disability or are elderly. Free ez form How to make the election. Free ez form   If you elect to deduct your costs for removing barriers to the disabled or the elderly, claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred. Free ez form Identify the deduction as a separate item. Free ez form The election applies to all the qualifying costs you have during the year, up to the $15,000 limit. Free ez form If you make this election, you must maintain adequate records to support your deduction. Free ez form   For your election to be valid, you generally must file your return by its due date, including extensions. Free ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Free ez form 9100-2. Free ez form ” File the amended return at the same address you filed the original return. Free ez form Your election is irrevocable after the due date, including extensions, of your return. Free ez form Disabled access credit. Free ez form   If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. Free ez form If you choose to claim the credit, you must reduce the amount you deduct or capitalize by the amount of the credit. Free ez form   For more information, see Form 8826, Disabled Access Credit. Free ez form Film and Television Production Costs Film and television production costs are generally capital expenses. Free ez form However, you can elect to deduct costs paid or incurred for certain productions commencing before January 1, 2014. Free ez form For more information, see section 181 of the Internal Revenue Code and the related Treasury Regulations. 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