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Free File Taxes On Line

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Free File Taxes On Line

Free file taxes on line 6. Free file taxes on line   How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free file taxes on line Prev  Up  Next   Home   More Online Publications
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Online and Home Shopping

Late delivery, shipment of wrong or damaged items, and hidden costs are common home shopping complaints. To avoid problems and resolve them more easily, follow the advice in the "Before You Buy" checklist In addition:

  • Be wary of post office boxes and sellers in other countries. It may be difficult to find the seller to resolve a problem later.
  • Know the total price. Make sure it includes all charges, shipping, handling, insurance and taxes. Coupons and other discounts should be properly deducted.
  • Make sure you are clear on what you are buying. Watch for words like "refurbished," "reconditioned," "close-out," or "discontinued."
  • The security code on the back of your card offers you extra protections on online purchases.
  • Keep a record of your purchase. Save any information the seller gives you such as product description, delivery date, cancellation policy, privacy policy, warranties, and order confirmation numbers.
  • Keep track of your order. If it's late, you have the right to cancel and demand a refund.

Online and Group Coupons

In addition to the traditional coupons found in newspapers, coupons can also be found online. Online coupons come in a variety of forms; they can be found on manufacturers’ websites and on dedicated coupon websites. Coupons are also available on social media websites for becoming a fan of a product, or for sharing your email address with the company.
Group coupons are another online saving tool. Here’s how they work: local companies offer reduced prices for things like spa services, gourmet meals, and outdoor adventures through a third party company. If interested, you pay the third party company to take advantage of the deal. Group coupons allow you to try new experiences, by reducing the trial cost. Before you purchase a group coupon, ask yourself “Am I really going to use this?” If the answer is “no”, don’t buy it. Read the terms and conditions of all coupons for expiration dates or use limitations.

The Free File Taxes On Line

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