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H And R Free File

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H And R Free File

H and r free file 8. H and r free file   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. H and r free file Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. H and r free file Introduction This chapter discusses how to pay your U. H and r free file S. H and r free file income tax as you earn or receive income during the year. H and r free file In general, the federal income tax is a pay as you go tax. H and r free file There are two ways to pay as you go. H and r free file Withholding. H and r free file If you are an employee, your employer probably withholds income tax from your pay. H and r free file Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. H and r free file In each case, the amount withheld is paid to the U. H and r free file S. H and r free file Treasury in your name. H and r free file Estimated tax. H and r free file If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. H and r free file People who are in business for themselves generally will have to pay their tax this way. H and r free file You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. H and r free file Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. H and r free file Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. H and r free file Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. H and r free file S. H and r free file Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. H and r free file S. H and r free file Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. H and r free file S. H and r free file Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. H and r free file Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. H and r free file If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. H and r free file If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. H and r free file S. H and r free file citizens. H and r free file If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. H and r free file If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. H and r free file However, if the income is effectively connected with a U. H and r free file S. H and r free file trade or business, file Form W-8ECI instead. H and r free file Withholding From Compensation The following discussion generally applies only to nonresident aliens. H and r free file Tax is withheld from resident aliens in the same manner as U. H and r free file S. H and r free file citizens. H and r free file Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. H and r free file S. H and r free file citizens. H and r free file Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. H and r free file Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. H and r free file Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). H and r free file These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). H and r free file Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. H and r free file This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. H and r free file Enter your social security number (SSN) on line 2. H and r free file Do not enter an individual taxpayer identification number (ITIN). H and r free file Check only “Single” marital status on line 3 (regardless of your actual marital status). H and r free file Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. H and r free file S. H and r free file national. H and r free file Write “Nonresident Alien” or “NRA” on the dotted line on line 6. H and r free file You can request additional withholding on line 6 at your option. H and r free file Do not claim “Exempt” withholding status on line 7. H and r free file A U. H and r free file S. H and r free file national is an individual who, although not a U. H and r free file S. H and r free file citizen, owes his or her allegiance to the United States. H and r free file U. H and r free file S. H and r free file nationals include American Samoans, and Northern Mariana Islanders who chose to become U. H and r free file S. H and r free file nationals instead of U. H and r free file S. H and r free file citizens. H and r free file See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. H and r free file S. H and r free file source scholarship or fellowship grant that is not a payment for services. H and r free file Students and business apprentices from India. H and r free file   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. H and r free file You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. H and r free file S. H and r free file taxpayer's 2013 return. H and r free file You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. H and r free file S. H and r free file citizens. H and r free file Household employees. H and r free file   If you work as a household employee, your employer does not have to withhold income tax. H and r free file However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. H and r free file The agreement goes into effect when your employer accepts the agreement by beginning the withholding. H and r free file You or your employer may end the agreement by letting the other know in writing. H and r free file Agricultural workers. H and r free file   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. H and r free file However, your employer will withhold income tax only if you and your employer agree to withhold. H and r free file In that case, you must provide your employer with a properly completed Form W-4. H and r free file You can find more information about not having tax withheld at www. H and r free file irs. H and r free file gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. H and r free file Wages Exempt From Withholding Wages that are exempt from U. H and r free file S. H and r free file income tax under an income tax treaty are generally exempt from withholding. H and r free file For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. H and r free file Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. H and r free file S. H and r free file Virgin Islands may be exempt from withholding. H and r free file The following paragraphs explain these exemptions. H and r free file Residents of Canada or Mexico engaged in transportation-related employment. H and r free file   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. H and r free file These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. H and r free file    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. H and r free file   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. H and r free file S. H and r free file citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. H and r free file   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. H and r free file Residents of American Samoa and Puerto Rico. H and r free file   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. H and r free file Residents of the U. H and r free file S. H and r free file Virgin Islands. H and r free file   Nonresident aliens who are bona fide residents of the U. H and r free file S Virgin Islands are not subject to withholding of U. H and r free file S. H and r free file tax on income earned while temporarily employed in the United States. H and r free file This is because those persons pay their income tax to the U. H and r free file S. H and r free file Virgin Islands. H and r free file To avoid having tax withheld on income earned in the United States, bona fide residents of the U. H and r free file S. H and r free file Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. H and r free file S. H and r free file Virgin Islands and expect to pay tax on all income to the U. H and r free file S. H and r free file Virgin Islands. H and r free file Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. H and r free file You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. H and r free file You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. H and r free file Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. H and r free file S. H and r free file income tax. H and r free file Include them in taxable income. H and r free file In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. H and r free file Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. H and r free file However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. H and r free file An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. H and r free file You must agree to timely file an income tax return for the current tax year. H and r free file Central withholding agreements. H and r free file   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. H and r free file Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. H and r free file   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. H and r free file Either you or your authorized representative can file the form. H and r free file It should be sent to the IRS at least 45 days before the tour begins or the event occurs. H and r free file Exceptions will be considered on a case by case basis. H and r free file   For more information on the CWA program, go to www. H and r free file irs. H and r free file gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. H and r free file Final payment exemption. H and r free file   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. H and r free file This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. H and r free file To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. H and r free file A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. H and r free file Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. H and r free file A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. H and r free file This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. H and r free file A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. H and r free file The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. H and r free file The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. H and r free file Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. H and r free file A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. H and r free file   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. H and r free file Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. H and r free file   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. H and r free file You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. H and r free file Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). H and r free file To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. H and r free file S. H and r free file national and are not a resident of Canada, Mexico, or South Korea. H and r free file For purposes of 30% withholding, the exemption is prorated at $10. H and r free file 82 a day in 2014 for the period that labor or personal services are performed in the United States. H and r free file To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. H and r free file Example. H and r free file Eric Johannsen, who is a resident of Country X worked under a contract with a U. H and r free file S. H and r free file firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. H and r free file He earned $6,000 for the services performed (not considered wages) in the United States. H and r free file Eric is married and has three dependent children. H and r free file His wife is not employed and has no income subject to U. H and r free file S. H and r free file tax. H and r free file The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. H and r free file 82), and withholding at 30% is applied against the balance. H and r free file Thus, $1,475. H and r free file 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). H and r free file U. H and r free file S. H and r free file nationals or residents of Canada, Mexico, or South Korea. H and r free file   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. H and r free file However, if you are a U. H and r free file S. H and r free file national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. H and r free file S. H and r free file citizens. H and r free file For the 30% (or lower treaty) rate withholding, you can take $10. H and r free file 82 per day for each allowable exemption in 2014. H and r free file If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. H and r free file However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . H and r free file Students and business apprentices from India. H and r free file   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. H and r free file S. H and r free file taxpayer's 2014 return. H and r free file You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. H and r free file S. H and r free file citizens. H and r free file For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. H and r free file 82 per day for each allowable exemption in 2014. H and r free file Refund of Taxes Withheld in Error Multi-level marketing. H and r free file   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. H and r free file S. H and r free file income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. H and r free file You must also attach to the U. H and r free file S. H and r free file income tax return or claim for refund supporting information that includes, but is not limited to, the following items. H and r free file A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. H and r free file A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. H and r free file S. H and r free file taxation. H and r free file A statement listing all the dates you entered and left the United States during the taxable year. H and r free file If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. H and r free file A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. H and r free file A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. H and r free file Any further relevant document or record supporting your claim that the taxes were withheld in error. H and r free file Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. H and r free file It also includes 85% of social security benefits paid to nonresident aliens. H and r free file Refund of taxes withheld in error on social security benefits paid to resident aliens. H and r free file   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. H and r free file For U. H and r free file S. H and r free file income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. H and r free file See Green Card Test in chapter 1. H and r free file If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. H and r free file SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. H and r free file If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. H and r free file You must also attach the following to your Form 1040 or 1040A. H and r free file A copy of Form SSA-1042S, Social Security Benefit Statement. H and r free file A copy of the “green card. H and r free file ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. H and r free file S. H and r free file lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. H and r free file I am filing a U. H and r free file S. H and r free file income tax return for the tax year as a resident alien reporting all of my worldwide income. H and r free file I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. H and r free file Other income not subject to withholding of 30% (or lower treaty) rate. H and r free file   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. H and r free file Income (other than compensation) that is effectively connected with your U. H and r free file S. H and r free file trade or business. H and r free file Income from real property that you choose to treat as effectively connected with a U. H and r free file S. H and r free file trade or business. H and r free file See Income From Real Property in chapter 4 for details about this choice. H and r free file   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. H and r free file Tax Withheld on Partnership Income If you are a foreign partner in a U. H and r free file S. H and r free file or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. H and r free file You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. H and r free file Generally, you must use Form 8804-C for this purpose. H and r free file See the Instructions for Form 8804-C for more information. H and r free file The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. H and r free file 6% for 2014). H and r free file However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. H and r free file Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. H and r free file Claim the tax withheld as a credit on your 2014 Form 1040NR. H and r free file The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. H and r free file A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. H and r free file In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. H and r free file S. H and r free file Source Income Subject to Withholding. H and r free file Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. H and r free file See chapter 3. H and r free file If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. H and r free file S. H and r free file source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. H and r free file However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. H and r free file Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. H and r free file Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). H and r free file Use the following instructions instead of the Form W-4 instructions to complete the worksheet. H and r free file Line A. H and r free file   Enter the total of the following amounts on line A. H and r free file Personal exemption. H and r free file   Include the prorated part of your allowable personal exemption. H and r free file Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. H and r free file 82). H and r free file Expenses. H and r free file   Include expenses that will be deductible on your return. H and r free file These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. H and r free file They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. H and r free file Nontaxable grant or scholarship. H and r free file   Include the part of your grant or scholarship that is not taxable under U. H and r free file S. H and r free file law or under a tax treaty. H and r free file Line B. H and r free file   Enter -0- unless the following paragraph applies to you. H and r free file   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. H and r free file The standard deduction amount for 2013 is $6,100. H and r free file Lines C and D. H and r free file   Enter -0- on both lines unless the following paragraphs apply to you. H and r free file   If you are a resident of Canada, Mexico, South Korea, or a U. H and r free file S. H and r free file national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. H and r free file   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. H and r free file S. H and r free file taxpayer's 2014 return. H and r free file You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. H and r free file S. H and r free file citizens. H and r free file   Enter any additional amount for your spouse on line C. H and r free file Enter any additional amount for your dependents on line D. H and r free file Lines E, F, and G. H and r free file   No entries should be made on lines E, F, and G. H and r free file Line H. H and r free file   Add the amounts on lines A through D and enter the total on line H. H and r free file Form W-4. H and r free file   Complete lines 1 through 4 of Form W-4. H and r free file Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. H and r free file   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. H and r free file S. H and r free file income tax return to be allowed the exemptions and deductions you claimed on that form. H and r free file If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. H and r free file S. H and r free file income tax return for the previous year. H and r free file If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. H and r free file S. H and r free file income tax return when required. H and r free file After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. H and r free file The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. H and r free file You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. H and r free file Use this form to prepare your annual U. H and r free file S. H and r free file income tax return. H and r free file Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. H and r free file Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. H and r free file File Form W-8BEN for income that is not personal services income. H and r free file File Form 8233 for personal services income as discussed next. H and r free file Employees and independent contractors. H and r free file   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. H and r free file   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. H and r free file This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. H and r free file In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. H and r free file Students, teachers, and researchers. H and r free file   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. H and r free file For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. H and r free file   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. H and r free file Special events and promotions. H and r free file   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. H and r free file Form 13930 is used to request a reduction in withholding. H and r free file Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. H and r free file One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. H and r free file You will be required to pay U. H and r free file S. H and r free file tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. H and r free file For more details on treaty provisions that apply to compensation, see Publication 901. H and r free file Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. H and r free file S. H and r free file real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. H and r free file A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. H and r free file S. H and r free file real property interest by the shareholder is subject to withholding at 35%. H and r free file Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. H and r free file These rules are covered in Publication 515. H and r free file For information on the tax treatment of dispositions of U. H and r free file S. H and r free file real property interests, see Real Property Gain or Loss in chapter 4. H and r free file If you are a partner in a domestic partnership, and the partnership disposes of a U. H and r free file S. H and r free file real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. H and r free file Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. H and r free file S. H and r free file Source Income Subject to Withholding (in the case of a publicly traded partnership). H and r free file Withholding is not required in the following situations. H and r free file The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. H and r free file The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. H and r free file However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. H and r free file The property disposed of is an interest in a U. H and r free file S. H and r free file corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. H and r free file S. H and r free file real property interest. H and r free file You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. H and r free file S. H and r free file taxpayer identification number, and home address. H and r free file You can give the certification to a qualified substitute. H and r free file The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. H and r free file For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. H and r free file The buyer receives a withholding certificate from the Internal Revenue Service. H and r free file You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. H and r free file S. H and r free file tax treaty. H and r free file The buyer must file a copy of the notice with the Ogden Service Center, P. H and r free file O. H and r free file Box 409101, Ogden, UT 84409. H and r free file You must verify the notice as true and sign it under penalties of perjury. H and r free file The notice must contain the following information. H and r free file A statement that the notice is a notice of nonrecognition under regulation section 1. H and r free file 1445-2(d)(2). H and r free file Your name, taxpayer identification number, and home address. H and r free file A statement that you are not required to recognize any gain or loss on the transfer. H and r free file A brief description of the transfer. H and r free file A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. H and r free file You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. H and r free file Instead, a withholding certificate (described next) must be obtained. H and r free file The amount you realize on the transfer of a U. H and r free file S. H and r free file real property interest is zero. H and r free file The property is acquired by the United States, a U. H and r free file S. H and r free file state or possession, a political subdivision, or the District of Columbia. H and r free file The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. H and r free file S. H and r free file real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. H and r free file For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. H and r free file See Wash sale under Real Property Gain or Loss in chapter 4. H and r free file The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. H and r free file This also applies to the qualified substitute's statement under (4). H and r free file Withholding certificates. H and r free file   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. H and r free file Either you or the buyer can request a withholding certificate. H and r free file   A withholding certificate can be issued due to any of the following. H and r free file The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. H and r free file All of your realized gain is exempt from U. H and r free file S. H and r free file tax. H and r free file You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. H and r free file   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. H and r free file Credit for tax withheld. H and r free file   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. H and r free file S. H and r free file Withholding Tax Return for Dispositions by Foreign Persons of U. H and r free file S. H and r free file Real Property Interests. H and r free file This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. H and r free file S. H and r free file Real Property Interests. H and r free file Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). H and r free file You must file Copy B with your tax return to take credit for the tax withheld. H and r free file   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. H and r free file The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. H and r free file When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. H and r free file Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. H and r free file Your payments of these taxes contribute to your coverage under the U. H and r free file S. H and r free file social security system. H and r free file Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. H and r free file In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. H and r free file All taxable wages are subject to Medicare tax. H and r free file Your employer deducts these taxes from each wage payment. H and r free file Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. H and r free file You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. H and r free file 40. H and r free file Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. H and r free file If any one employer deducted more than $7,049. H and r free file 40, you cannot claim a credit for that amount. H and r free file Ask your employer to refund the excess. H and r free file If your employer does not refund the excess, you can file a claim for refund using Form 843. H and r free file In general, U. H and r free file S. H and r free file social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. H and r free file In limited situations, these taxes apply to wages for services performed outside the United States. H and r free file Your employer should be able to tell you if social security and Medicare taxes apply to your wages. H and r free file You cannot make voluntary payments if no taxes are due. H and r free file Additional Medicare Tax. H and r free file   Beginning in 2013, in addition to the Medicare tax, a 0. H and r free file 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. H and r free file   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. H and r free file Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. H and r free file   Your employer is responsible for withholding the 0. H and r free file 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. H and r free file If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. H and r free file   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). H and r free file    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. H and r free file For more information on Additional Medicare Tax, go to IRS. H and r free file gov and enter “Additional Medicare Tax” in the search box. H and r free file   Self-employed individuals may also be required to pay Additional Medicare Tax. H and r free file See Self-Employment Tax , later. H and r free file Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. H and r free file This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. H and r free file These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. H and r free file Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. H and r free file Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. H and r free file Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. H and r free file In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. H and r free file Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. H and r free file Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. H and r free file The U. H and r free file S. H and r free file Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. H and r free file S. H and r free file resident. H and r free file On-campus work means work performed on the school's premises. H and r free file On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. H and r free file On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. H and r free file Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. H and r free file If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. H and r free file Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. H and r free file Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. H and r free file If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. H and r free file Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. H and r free file The employer must be the petitioner through whom the alien obtained the “Q” visa. H and r free file Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. H and r free file Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. H and r free file If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. H and r free file Attach the following items to Form 843. H and r free file A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. H and r free file A copy of your visa. H and r free file Form I-94 (or other documentation showing your dates of arrival or departure). H and r free file If you have an F-1 visa, documentation showing permission to work in the U. H and r free file S. H and r free file If you have a J-1 visa, documentation showing permission to work in the U. H and r free file S. H and r free file If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. H and r free file S. H and r free file A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. H and r free file If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. H and r free file If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. H and r free file File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. H and r free file Do not use Form 843 to request a refund of Additional Medicare Tax. H and r free file If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. H and r free file If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. H and r free file S. H and r free file Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. H and r free file See the Instructions for Form 1040X. H and r free file Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. H and r free file You can find more information about not having tax withheld at www. H and r free file irs. H and r free file gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. H and r free file Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. H and r free file Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. H and r free file S. H and r free file social security system. H and r free file Residents of the U. H and r free file S. H and r free file Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. H and r free file S. H and r free file residents for this purpose and are subject to the self-employment tax. H and r free file Resident aliens must pay self-employment tax under the same rules that apply to U. H and r free file S. H and r free file citizens. H and r free file However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. H and r free file Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. H and r free file Example. H and r free file Bill Jones is an author engaged in the business of writing books. H and r free file Bill had several books published in a foreign country while he was a citizen and resident of that country. H and r free file During 2013, Bill entered the United States as a resident alien. H and r free file After becoming a U. H and r free file S. H and r free file resident, he continued to receive royalties from his foreign publisher. H and r free file Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). H and r free file Bill's 2013 self-employment income includes the royalties received after he became a U. H and r free file S. H and r free file resident even though the books were published while he was a nonresident alien. H and r free file This royalty income is subject to self-employment tax. H and r free file Reporting self-employment tax. H and r free file   Use Schedule SE (Form 1040) to report and figure your self-employment tax. H and r free file Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. H and r free file Attach Schedule SE to Form 1040 or Form 1040NR. H and r free file Additional Medicare Tax. H and r free file   Self-employed individuals must pay a 0. H and r free file 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. H and r free file   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. H and r free file A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). H and r free file   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. H and r free file For more information on Additional Medicare Tax, go to IRS. H and r free file gov and enter “Additional Medicare Tax” in the search box. H and r free file Deduction for employer-equivalent portion of self-employment tax. H and r free file   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. H and r free file This deduction is figured on Schedule SE (Form 1040). H and r free file Note. H and r free file No portion of the Additional Medicare Tax is deductible for self-employment tax. H and r free file More information. H and r free file   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. H and r free file International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. H and r free file These agreements are commonly referred to as totalization agreements. H and r free file Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. H and r free file The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. H and r free file Agreements are in effect with the following countries. H and r free file Australia. H and r free file Austria. H and r free file Belgium. H and r free file Canada. H and r free file Chile. H and r free file Czech Republic. H and r free file Denmark. H and r free file Finland. H and r free file France. H and r free file Germany. H and r free file Greece. H and r free file Ireland. H and r free file Italy. H and r free file Japan. H and r free file Korea, South. H and r free file Luxembourg. H and r free file The Netherlands. H and r free file Norway. H and r free file Poland. H and r free file Portugal. H and r free file Spain. H and r free file Sweden. H and r free file Switzerland. H and r free file The United Kingdom. H and r free file Agreements with other countries are expected to enter into force in the future. H and r free file Employees. H and r free file   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. H and r free file However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. H and r free file You can get more information on any agreement by contacting the U. H and r free file S. H and r free file Social Security Administration at the address given later. H and r free file If you have access to the Internet, you can get more information at www. H and r free file socialsecurity. H and r free file gov/international. H and r free file   To establish that your pay is subject only to foreign social security taxes and is exempt from U. H and r free file S. H and r free file social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. H and r free file This will usually be the same agency to which you or your employer pays your foreign social security taxes. H and r free file The foreign agency will be able to tell you what information is needed for them to issue the certificate. H and r free file Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. H and r free file S. H and r free file social security taxes. H and r free file Only wages paid on or after the effective date of the agreement can be exempt from U. H and r free file S. H and r free file social security taxes. H and r free file    Some of the countries with which the United States has agreements will not issue certificates of coverage. H and r free file In this case, either you or your employer should request a statement that your wages are not covered by the U. H and r free file S. H and r free file social security system. H and r free file Request the statement from the following address. H and r free file U. H and r free file S. H and r free file Social Security Administration Office of International Programs P. H and r free file O. H and r free file Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. H and r free file   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. H and r free file However, under some agreements, you may be exempt from U. H and r free file S. H and r free file self-employment tax if you temporarily transfer your business activity to or from the United States. H and r free file   If you believe that your self-employment income is subject only to U. H and r free file S. H and r free file self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. H and r free file S. H and r free file Social Security Administration at the address given earlier. H and r free file This certificate will establish your exemption from foreign social security taxes. H and r free file   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. H and r free file S. H and r free file self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. H and r free file If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. H and r free file S. H and r free file social security system. H and r free file Request it from the U. H and r free file S. H and r free file Social Security Administration at the address given earlier. H and r free file Attach a photocopy of either statement to Form 1040 each year you are exempt. H and r free file Also print “Exempt, see attached statement” on the line for self-employment tax. H and r free file Estimated Tax Form 1040-ES (NR) You may have income from which no U. H and r free file S. H and r free file income tax is withheld. H and r free file Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. H and r free file If so, you may have to pay estimated tax. H and r free file Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). H and r free file If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. H and r free file Item (2) does not apply if you did not file a 2013 return. H and r free file A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. H and r free file If you pay by check, make it payable to the "United States Treasury. H and r free file " How to estimate your tax for 2014. H and r free file   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. H and r free file If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. H and r free file Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. H and r free file Note. H and r free file If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). H and r free file When to pay estimated tax. H and r free file   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. H and r free file If you have wages subject to the same withholding rules that apply to U. H and r free file S. H and r free file citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. H and r free file If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. H and r free file   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. H and r free file 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. H and r free file 15, 2014 4th installment Jan. H and r free file 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. H and r free file    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. H and r free file Fiscal year. H and r free file   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. H and r free file If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. H and r free file Changes in income, deductions, or exemptions. H and r free file   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. H and r free file This can happen if you receive additional income or if any of your deductions are reduced or eliminated. H and r free file If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. H and r free file Amended estimated tax. H and r free file   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. H and r free file To do this, see the instructions for Form 1040-ES (NR) and Publication 505. H and r free file Penalty for failure to pay estimated income tax. H and r free file   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. H and r free file These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. H and r free file Prev  Up  Next   Home   More Online Publications
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Understanding Your CP53B Notice

We tried to direct deposit your refund, but the financial institution couldn’t process it. We are researching your account, but it will take 8 to 10 weeks to complete our review and verify this refund.


What you need to do

  • You don’t need to do anything at this time.

You may want to

  • Call us at the toll-free number on the notice if you don’t receive your refund check or a follow-up letter within 10 weeks
  • Monitor your financial accounts

If you notice any suspicious or unusual activity, you should:

  • Notify your financial institutions
  • Contact the fraud department of one of the three major credit bureaus
  • Report any fraudulent activity to your local police or sheriff's department
  • File a complaint with the Federal Trade Commission
  • Submit a Form 14039, Identity Theft Affidavit

Answers to Common Questions

Q. What should I do if I didn’t file a return?

A. Submit a Form 14039, Identity Theft Affidavit, to the IRS address in the Form 14039 instructions.

Q. Can I direct part of my refund into my tax professional’s checking or savings account to pay my tax preparation fee?

A. No. You can direct your refund to any of your checking or savings accounts. You can’t direct your refund to someone else’s account (except for your spouse’s account when you have a joint refund).

Q. Why will it take up to 10 weeks to receive my refund?

A. We must research your account to determine if you are entitled to the refund. We try to balance customer service and tax compliance when we review tax returns.  Refund timeframes are also affected by:

  • Bankruptcy
  • An open audit
  • A balance due on a related account (such as a different tax year)

Q. Will calling the IRS give me additional information or speed my refund?

A. No, calling us won’t speed up your refund. You don’t need to call us unless we send you a letter that asks you to contact us. Our telephone assistors won’t be able to provide any additional information.


Tips for next year

If you request a direct deposit refund, be sure the account you specify is in your name (or your spouse’s if you have a joint refund).

If you changed your name as a result of a recent marriage or divorce, be sure the name on your tax return matches the name registered with the Social Security Administration.

Never direct your refund to an account that belongs to a relative, friend, or tax return preparer.

 

Page Last Reviewed or Updated: 21-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The H And R Free File

H and r free file 11. H and r free file   How To Get Tax Help Table of Contents 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. H and r free file Free help with your tax return. H and r free file   You can get free help preparing your return nationwide from IRS-certified volunteers. H and r free file The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. H and r free file The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. H and r free file Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. H and r free file In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. H and r free file To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. H and r free file gov, download the IRS2Go app, or call 1-800-906-9887. H and r free file   As part of the TCE program, AARP offers the Tax-Aide counseling program. H and r free file To find the nearest AARP Tax-Aide site, visit AARP's website at www. H and r free file aarp. H and r free file org/money/taxaide or call 1-888-227-7669. H and r free file For more information on these programs, go to IRS. H and r free file gov and enter “VITA” in the search box. H and r free file Internet. H and r free file    IRS. H and r free file gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. H and r free file Download the free IRS2Go app from the iTunes app store or from Google Play. H and r free file Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. H and r free file Check the status of your 2013 refund with the Where's My Refund? application on IRS. H and r free file gov or download the IRS2Go app and select the Refund Status option. H and r free file The IRS issues more than 9 out of 10 refunds in less than 21 days. H and r free file Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. H and r free file You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. H and r free file The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. H and r free file Use the Interactive Tax Assistant (ITA) to research your tax questions. H and r free file No need to wait on the phone or stand in line. H and r free file The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. H and r free file When you reach the response screen, you can print the entire interview and the final response for your records. H and r free file New subject areas are added on a regular basis. H and r free file  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. H and r free file gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. H and r free file You can use the IRS Tax Map, to search publications and instructions by topic or keyword. H and r free file The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. H and r free file When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. H and r free file Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. H and r free file You can also ask the IRS to mail a return or an account transcript to you. H and r free file Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. H and r free file gov or by calling 1-800-908-9946. H and r free file Tax return and tax account transcripts are generally available for the current year and the past three years. H and r free file Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. H and r free file Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. H and r free file If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. H and r free file Check the status of your amended return using Where's My Amended Return? Go to IRS. H and r free file gov and enter Where's My Amended Return? in the search box. H and r free file You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. H and r free file It can take up to 3 weeks from the date you mailed it to show up in our system. H and r free file Make a payment using one of several safe and convenient electronic payment options available on IRS. H and r free file gov. H and r free file Select the Payment tab on the front page of IRS. H and r free file gov for more information. H and r free file Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. H and r free file Figure your income tax withholding with the IRS Withholding Calculator on IRS. H and r free file gov. H and r free file Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. H and r free file Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. H and r free file gov. H and r free file Request an Electronic Filing PIN by going to IRS. H and r free file gov and entering Electronic Filing PIN in the search box. H and r free file Download forms, instructions and publications, including accessible versions for people with disabilities. H and r free file Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. H and r free file gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. H and r free file An employee can answer questions about your tax account or help you set up a payment plan. H and r free file Before you visit, check the Office Locator on IRS. H and r free file gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. H and r free file If you have a special need, such as a disability, you can request an appointment. H and r free file Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. H and r free file Apply for an Employer Identification Number (EIN). H and r free file Go to IRS. H and r free file gov and enter Apply for an EIN in the search box. H and r free file Read the Internal Revenue Code, regulations, or other official guidance. H and r free file Read Internal Revenue Bulletins. H and r free file Sign up to receive local and national tax news and more by email. H and r free file Just click on “subscriptions” above the search box on IRS. H and r free file gov and choose from a variety of options. H and r free file Phone. H and r free file    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. H and r free file Download the free IRS2Go app from the iTunes app store or from Google Play. H and r free file Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. H and r free file gov, or download the IRS2Go app. H and r free file Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. H and r free file The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. H and r free file Most VITA and TCE sites offer free electronic filing. H and r free file Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. H and r free file Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. H and r free file Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. H and r free file If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. H and r free file The IRS issues more than 9 out of 10 refunds in less than 21 days. H and r free file Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. H and r free file Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. H and r free file The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. H and r free file Note, the above information is for our automated hotline. H and r free file Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. H and r free file Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. H and r free file You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. H and r free file It can take up to 3 weeks from the date you mailed it to show up in our system. H and r free file Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). H and r free file You should receive your order within 10 business days. H and r free file Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. H and r free file If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. H and r free file Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. H and r free file The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. H and r free file These individuals can also contact the IRS through relay services such as the Federal Relay Service. H and r free file Walk-in. H and r free file   You can find a selection of forms, publications and services — in-person. H and r free file Products. H and r free file You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. H and r free file Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. H and r free file Services. H and r free file You can walk in to your local TAC for face-to-face tax help. H and r free file An employee can answer questions about your tax account or help you set up a payment plan. H and r free file Before visiting, use the Office Locator tool on IRS. H and r free file gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. H and r free file Mail. H and r free file   You can send your order for forms, instructions, and publications to the address below. H and r free file You should receive a response within 10 business days after your request is received. H and r free file Internal Revenue Service 1201 N. H and r free file Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. H and r free file The Taxpayer Advocate Service (TAS) is your voice at the IRS. H and r free file Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. H and r free file   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. H and r free file We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. H and r free file You face (or your business is facing) an immediate threat of adverse action. H and r free file You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. H and r free file   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. H and r free file Here's why we can help: TAS is an independent organization within the IRS. H and r free file Our advocates know how to work with the IRS. H and r free file Our services are free and tailored to meet your needs. H and r free file We have offices in every state, the District of Columbia, and Puerto Rico. H and r free file   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. H and r free file   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. H and r free file If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. H and r free file Low Income Taxpayer Clinics. H and r free file   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. H and r free file Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. H and r free file Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. H and r free file Prev  Up  Next   Home   More Online Publications