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How To File Back Taxes Online

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How To File Back Taxes Online

How to file back taxes online Tax Changes for Businesses Table of Contents 2001 ChangesNew 5-Year Carryback Rule for Net Operating Losses (NOLs) Electronic Form 1099 Tax Incentives for New York Liberty Zone Other 2001 Changes 2002 ChangesNonaccrual-Experience Method Issuance of Qualified Zone Academy Bonds Depletion Work Opportunity Credit Expanded in New York Liberty Zone Credit For Pension Plan Startup Costs Welfare-to-Work Credit Extended Work Opportunity Credit Extended Electric and Clean-Fuel Vehicles Renewable Electricity Production Credit Later ChangesSpecial Depreciation Allowance Extension of Placed in Service Date Special Liberty Zone Depreciation Allowance for New and Used Property Depreciation of Property Used on Indian Reservations Indian Employment Credit Extended 2001 Changes New 5-Year Carryback Rule for Net Operating Losses (NOLs) If you have an NOL from a tax year ending during 2001 or 2002, you must generally carry back the entire amount of the NOL to the 5 tax years before the NOL year (the carryback period). How to file back taxes online However, you can still choose to use the previous carryback period. How to file back taxes online You also can choose not to carry back an NOL and only carry it forward. How to file back taxes online Individuals, estates, and trusts can file Form 1045, Application for Tentative Refund. How to file back taxes online Corporations can file Form 1139, Corporation Application for Tentative Refund. How to file back taxes online The instructions for these forms will be revised to reflect the new law. How to file back taxes online Electronic Form 1099 For tax years ending after March 9, 2002, most Forms 1099 can be furnished electronically if the recipient consents, according to IRS regulations, to receive it that way. How to file back taxes online Tax Incentives for New York Liberty Zone New tax benefits are provided for the parts of New York City damaged in the terrorist attacks on September 11, 2001. How to file back taxes online These benefits apply to the newly created New York Liberty Zone, which is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway), in the Borough of Manhattan. How to file back taxes online Tax benefits for the New York Liberty Zone include the following. How to file back taxes online A special depreciation allowance equal to 30% of the adjusted basis of qualified Liberty Zone property. How to file back taxes online It is allowed for the year the property is placed in service. How to file back taxes online No alternative minimum tax depreciation adjustment for qualified Liberty Zone property. How to file back taxes online Classification of Liberty Zone leasehold improvement property as 5-year property. How to file back taxes online Authorization of the issuance of tax-exempt New York Liberty bonds to finance the acquisition, construction, reconstruction, and renovation of nonresidential real property, residential rental property, and public utility property in the Liberty Zone. How to file back taxes online An increased section 179 deduction for certain Liberty Zone property. How to file back taxes online Extension of the replacement period from 2 years to 5 years for certain property involuntarily converted as a result of the terrorist attacks on September 11, 2001, but only if substantially all of the use of the replacement property is in New York City. How to file back taxes online For more information about involuntary conversions, see Postponement of Gain in Publication 547, Casualties, Disasters, and Thefts. How to file back taxes online In addition, for 2002 and 2003, the work opportunity credit is expanded by creating a new targeted group, consisting generally of employees who work in the Liberty Zone or, in certain cases, in New York City outside the Liberty Zone. How to file back taxes online For more information, see Work Opportunity Credit Expanded in New York Liberty Zone under 2002 Changes, later. How to file back taxes online For more information about the 30% special depreciation allowance, Liberty Zone leasehold improvement property, or increased section 179 deduction, see New York Liberty Zone Benefits, in chapter 5. How to file back taxes online In addition, the tax benefits for the Liberty Zone will be covered in a new edition of Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities, available later in 2002. How to file back taxes online Other 2001 Changes Other changes are discussed in the following chapters. How to file back taxes online Chapter 4 Car Expenses Chapter 5 Depreciation 2002 Changes Nonaccrual-Experience Method Under current law, if you perform services and use an accrual method of accounting, you do not accrue income which, based on experience, you expect to be uncollectible. How to file back taxes online Beginning in 2002, this rule only applies if you perform services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, and consulting, or your average annual gross receipts for the 3 prior tax years does not exceed $5,000,000. How to file back taxes online As under current law, the nonaccrual-experience method will not apply to amounts on which you charge interest or a late payment penalty. How to file back taxes online For more information, see Nonaccrual-Experience Method in chapter 11 of Publication 535, Business Expenses. How to file back taxes online Issuance of Qualified Zone Academy Bonds State and local governments issue qualified zone academy bonds to raise funds for the use of qualified zone academies. How to file back taxes online The amount of bonds that may be issued was limited to $400 million each year for 1998, 1999, 2000, and 2001. How to file back taxes online This provision has been extended to provide for an additional $400 million of bonds to be issued each year for 2002 and 2003. How to file back taxes online For more information about qualified zone academy bonds, see Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities. How to file back taxes online Depletion The suspension of the taxable income limit on percentage depletion from the marginal production of oil and natural gas that was scheduled to expire for tax years beginning after 2001 has been extended to tax years beginning before 2004. How to file back taxes online For more information on marginal production, see section 613A(c) of the Internal Revenue Code. How to file back taxes online Work Opportunity Credit Expanded in New York Liberty Zone The work opportunity credit is expanded to include a new targeted group consisting generally of employees who perform substantially all their services: In the New York Liberty Zone (defined earlier under Tax Incentives for New York Liberty Zone, under 2001 Changes), or Elsewhere in New York City for a business that relocated from the Liberty Zone due to the destruction or damage of its place of business by the September 11, 2001, terrorist attack. How to file back taxes online The credit is available to employers for wages paid to new employees and existing employees for work performed during 2002 or 2003. How to file back taxes online Certain limits apply. How to file back taxes online For more information about the work opportunity credit, see Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities. How to file back taxes online Credit For Pension Plan Startup Costs The credit for pension plan startup costs is now allowed for plans that become effective after December 31, 2001. How to file back taxes online Previously, the credit was only allowed for plans established after December 31, 2001. How to file back taxes online For more information on the credit, see Important Changes for 2002 in Publication 560, Retirement Plans for Small Business. How to file back taxes online Welfare-to-Work Credit Extended The welfare-to-work credit that was scheduled to expire for wages paid to individuals who began working for you after 2001 has been extended to include wages paid to qualified individuals who begin work for you in 2002 or 2003. How to file back taxes online For more information on the welfare-to-work credit, see Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities. How to file back taxes online Work Opportunity Credit Extended The work opportunity credit that was scheduled to expire for wages paid to individuals who began working for you after 2001 has been extended to include wages paid to qualified individuals who begin work for you in 2002 or 2003. How to file back taxes online For more information about the work opportunity credit, see Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities. How to file back taxes online Electric and Clean-Fuel Vehicles The maximum clean-fuel vehicle deduction and qualified electric vehicle credit were scheduled to be 25% lower for 2002 and both were scheduled to be phased out completely by 2005. How to file back taxes online The full deduction and credit are now allowed for qualified property placed in service in 2002 and 2003. How to file back taxes online The phaseout of the deduction and the credit will begin in 2004, and no deduction or credit will be allowed for property placed in service after 2006. How to file back taxes online For more information about electric and clean-fuel vehicles, see chapter 12 in Publication 535, Business Expenses. How to file back taxes online Renewable Electricity Production Credit The renewable electricity production credit is extended to include electricity produced by facilities placed in service after 2001 and before 2004. How to file back taxes online Later Changes Special Depreciation Allowance You can claim the special depreciation allowance (an additional 30% depreciation deduction) for new property that you acquire before September 11, 2004, and place in service for your business generally before January 1, 2005, if you meet the other requirements for qualified property covered in chapter 5. How to file back taxes online Accordingly, you will generally no longer be able to claim the special depreciation allowance for the qualified property if you acquire it after September 10, 2004, or place it in service for your business after December 31, 2004. How to file back taxes online However, you will be able to claim the special Liberty Zone depreciation allowance (an additional 30% depreciation deduction) for most qualified property if you place it in service in the Liberty Zone after December 31, 2004, and generally before January 1, 2007, provided you meet the other requirements for qualified Liberty Zone property covered in chapter 5. How to file back taxes online Extension of Placed in Service Date To qualify for the special depreciation allowance, your property must meet certain tests, including the placed in service date test, as well as the other requirements covered in chapter 5 of this publication. How to file back taxes online To meet the placed in service date test, your property must generally be placed in service for use in your trade or business or for the production of income after September 10, 2001, and before January 1, 2005. How to file back taxes online However, certain property placed in service before January 1, 2006, may meet this test. How to file back taxes online Transportation property and property with a recovery period of 10 years or longer meet the test if one of the following applies. How to file back taxes online The property has an estimated production period of more than 2 years. How to file back taxes online The property has an estimated production period of more than 1 year and it costs more than $1 million. How to file back taxes online Transportation property is any tangible personal property used in the trade or business of transporting persons or property. How to file back taxes online For property that qualifies for the special depreciation allowance solely because of the one-year extension of the placed in service date, only the part of the basis attributable to manufacture, construction, or production before September 11, 2004, is eligible for the special depreciation allowance. How to file back taxes online Special Liberty Zone Depreciation Allowance for New and Used Property You can claim the special Liberty Zone depreciation allowance (an additional 30% depreciation deduction) for used property that you acquire after September 10, 2001, if the property meets the requirements listed under Qualified Liberty Zone Property in chapter 5 of this publication. How to file back taxes online You will be able to claim the allowance for both new and used property that you acquire after September 10, 2004, provided the property meets the other requirements for qualified Liberty Zone property. How to file back taxes online Depreciation of Property Used on Indian Reservations The special depreciation rules that apply to qualified property used on an Indian reservation were scheduled to expire for property placed in service after 2003. How to file back taxes online These special rules have been extended to include property placed in service in 2004. How to file back taxes online For more information about these rules, see Publication 946, How To Depreciate Property. How to file back taxes online Indian Employment Credit Extended The Indian employment credit that was scheduled to expire for tax years beginning after 2003 has been extended to include a tax year beginning in 2004. How to file back taxes online For more information about this credit, see Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities. How to file back taxes online Prev  Up  Next   Home   More Online Publications
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The How To File Back Taxes Online

How to file back taxes online 3. How to file back taxes online   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. How to file back taxes online Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. How to file back taxes online An exclusion from gross income is generally income you receive that is not included in your U. How to file back taxes online S. How to file back taxes online income and is not subject to U. How to file back taxes online S. How to file back taxes online tax. How to file back taxes online This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. How to file back taxes online Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. How to file back taxes online Useful Items - You may want to see: Publication 54 Tax Guide for U. How to file back taxes online S. How to file back taxes online Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. How to file back taxes online Resident Aliens Resident aliens may be able to exclude the following items from their gross income. How to file back taxes online Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. How to file back taxes online The exclusion is $97,600 in 2013. How to file back taxes online In addition, you may be able to exclude or deduct certain foreign housing amounts. How to file back taxes online You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. How to file back taxes online For more information, see Publication 54. How to file back taxes online Foreign country. How to file back taxes online    A foreign country is any territory under the sovereignty of a government other than that of the United States. How to file back taxes online   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. How to file back taxes online It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. How to file back taxes online   The term “foreign country” does not include U. How to file back taxes online S. How to file back taxes online possessions or territories. How to file back taxes online It does not include the Antarctic region. How to file back taxes online Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. How to file back taxes online Interest Income Interest income that is not connected with a U. How to file back taxes online S. How to file back taxes online trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. How to file back taxes online State and local government obligations. How to file back taxes online   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. How to file back taxes online S. How to file back taxes online possession, generally is not included in income. How to file back taxes online However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. How to file back taxes online Portfolio interest. How to file back taxes online   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. How to file back taxes online To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. How to file back taxes online Note. How to file back taxes online For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. How to file back taxes online Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. How to file back taxes online Obligations in registered form. How to file back taxes online   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. How to file back taxes online   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. How to file back taxes online   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. How to file back taxes online For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. How to file back taxes online Obligations not in registered form. How to file back taxes online    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. How to file back taxes online A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. How to file back taxes online   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. How to file back taxes online In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. How to file back taxes online Interest that does not qualify as portfolio interest. How to file back taxes online   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. How to file back taxes online You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. How to file back taxes online Contingent interest. How to file back taxes online   Portfolio interest does not include contingent interest. How to file back taxes online Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. How to file back taxes online For exceptions, see Internal Revenue Code section 871(h)(4)(C). How to file back taxes online Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. How to file back taxes online Related persons. How to file back taxes online   Related persons include the following. How to file back taxes online Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. How to file back taxes online ), and lineal descendants (children, grandchildren, etc. How to file back taxes online ). How to file back taxes online Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. How to file back taxes online Certain corporations, partnerships, and other entities. How to file back taxes online For details, see Nondeductible Loss in chapter 2 of Publication 544. How to file back taxes online Exception for existing debt. How to file back taxes online   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. How to file back taxes online Dividend Income The following dividend income is exempt from the 30% tax. How to file back taxes online Certain dividends paid by foreign corporations. How to file back taxes online   There is no 30% tax on U. How to file back taxes online S. How to file back taxes online source dividends you receive from a foreign corporation. How to file back taxes online See Second exception under Dividends in chapter 2 for how to figure the amount of U. How to file back taxes online S. How to file back taxes online source dividends. How to file back taxes online Certain interest-related dividends. How to file back taxes online   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. How to file back taxes online The mutual fund will designate in writing which dividends are interest-related dividends. How to file back taxes online Certain short-term capital gain dividends. How to file back taxes online   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. How to file back taxes online The mutual fund will designate in writing which dividends are short-term capital gain dividends. How to file back taxes online This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. How to file back taxes online Services Performed for Foreign Employer If you were paid by a foreign employer, your U. How to file back taxes online S. How to file back taxes online source income may be exempt from U. How to file back taxes online S. How to file back taxes online tax, but only if you meet one of the situations discussed next. How to file back taxes online Employees of foreign persons, organizations, or offices. How to file back taxes online   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. How to file back taxes online S. How to file back taxes online sources and is tax exempt if you meet all three of the following conditions. How to file back taxes online You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. How to file back taxes online S. How to file back taxes online corporation, a U. How to file back taxes online S. How to file back taxes online partnership, or a U. How to file back taxes online S. How to file back taxes online citizen or resident. How to file back taxes online You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. How to file back taxes online Your pay for these services is not more than $3,000. How to file back taxes online If you do not meet all three conditions, your income from personal services performed in the United States is U. How to file back taxes online S. How to file back taxes online source income and is taxed according to the rules in chapter 4. How to file back taxes online   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. How to file back taxes online To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. How to file back taxes online If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. How to file back taxes online   A day means a calendar day during any part of which you are physically present in the United States. How to file back taxes online Example 1. How to file back taxes online During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. How to file back taxes online S. How to file back taxes online partnership. How to file back taxes online Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. How to file back taxes online That office paid him a total gross salary of $2,800 for those services. How to file back taxes online During 2013, he was not engaged in a trade or business in the United States. How to file back taxes online The salary is not considered U. How to file back taxes online S. How to file back taxes online source income and is exempt from U. How to file back taxes online S. How to file back taxes online tax. How to file back taxes online Example 2. How to file back taxes online The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. How to file back taxes online He received $2,875 in 2013, and $1,625 in 2014. How to file back taxes online During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. How to file back taxes online Henry's salary is U. How to file back taxes online S. How to file back taxes online source income and is taxed under the rules in chapter 4. How to file back taxes online Crew members. How to file back taxes online   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. How to file back taxes online S. How to file back taxes online possession is not U. How to file back taxes online S. How to file back taxes online source income and is exempt from U. How to file back taxes online S. How to file back taxes online tax. How to file back taxes online This exemption does not apply to compensation for services performed on foreign aircraft. How to file back taxes online Students and exchange visitors. How to file back taxes online   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. How to file back taxes online   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. How to file back taxes online It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. How to file back taxes online   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. How to file back taxes online Foreign employer. How to file back taxes online   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. How to file back taxes online S. How to file back taxes online possession by a U. How to file back taxes online S. How to file back taxes online corporation, a U. How to file back taxes online S. How to file back taxes online partnership, or an individual who is a U. How to file back taxes online S. How to file back taxes online citizen or resident. How to file back taxes online   The term “foreign employer” does not include a foreign government. How to file back taxes online Pay from a foreign government that is exempt from U. How to file back taxes online S. How to file back taxes online income tax is discussed in chapter 10. How to file back taxes online Income from certain annuities. How to file back taxes online   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. How to file back taxes online S. How to file back taxes online income tax if you meet both of the following conditions. How to file back taxes online You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . How to file back taxes online At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. How to file back taxes online S. How to file back taxes online citizens or residents. How to file back taxes online   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. How to file back taxes online S. How to file back taxes online citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. How to file back taxes online   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. How to file back taxes online Income affected by treaties. How to file back taxes online   Income of any kind that is exempt from U. How to file back taxes online S. How to file back taxes online tax under a treaty to which the United States is a party is excluded from your gross income. How to file back taxes online Income on which the tax is only limited by treaty, however, is included in gross income. How to file back taxes online See chapter 9. How to file back taxes online Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. How to file back taxes online Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. How to file back taxes online If you are married and file a joint return, you may be able to exclude up to $500,000. How to file back taxes online For information on the requirements for this exclusion, see Publication 523. How to file back taxes online This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. How to file back taxes online Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. How to file back taxes online The rules discussed here apply to both resident and nonresident aliens. How to file back taxes online If a nonresident alien receives a grant that is not from U. How to file back taxes online S. How to file back taxes online sources, it is not subject to U. How to file back taxes online S. How to file back taxes online tax. How to file back taxes online See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. How to file back taxes online S. How to file back taxes online sources. How to file back taxes online A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. How to file back taxes online Candidate for a degree. How to file back taxes online   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. How to file back taxes online Eligible educational institution. How to file back taxes online   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. How to file back taxes online Qualified education expenses. How to file back taxes online   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. How to file back taxes online These items must be required of all students in your course of instruction. How to file back taxes online However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. How to file back taxes online Expenses that do not qualify. How to file back taxes online   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. How to file back taxes online This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. How to file back taxes online Scholarship or fellowship amounts used to pay these costs are taxable. How to file back taxes online Amounts used to pay expenses that do not qualify. How to file back taxes online   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. How to file back taxes online Payment for services. How to file back taxes online   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. How to file back taxes online This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. How to file back taxes online Example. How to file back taxes online On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. How to file back taxes online As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. How to file back taxes online Of the $2,500 scholarship, $1,000 represents payment for her services. How to file back taxes online Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. How to file back taxes online Prev  Up  Next   Home   More Online Publications