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Irs Forms 2009

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Irs Forms 2009

Irs forms 2009 3. Irs forms 2009   Investment Expenses Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Limits on DeductionsPassive activity. Irs forms 2009 Other income (nonpassive income). Irs forms 2009 Expenses. Irs forms 2009 Additional information. Irs forms 2009 Interest ExpensesInvestment Interest Limit on Deduction Bond Premium AmortizationSpecial rules to determine amounts payable on a bond. Irs forms 2009 Basis. Irs forms 2009 How To Figure Amortization Choosing To Amortize How To Report Amortization Expenses of Producing IncomeFees to buy or sell. Irs forms 2009 Including mutual fund or REMIC expenses in income. Irs forms 2009 Nondeductible ExpensesUsed as collateral. Irs forms 2009 Short-sale expenses. Irs forms 2009 Expenses for both tax-exempt and taxable income. Irs forms 2009 State income taxes. Irs forms 2009 Nondeductible amount. Irs forms 2009 Basis adjustment. Irs forms 2009 How To Report Investment Expenses When To Report Investment Expenses Topics - This chapter discusses: Limits on Deductions , Interest Expenses , Bond Premium Amortization , Expenses of Producing Income , Nondeductible Expenses , How To Report Investment Expenses , and When To Report Investment Expenses . Irs forms 2009 Useful Items - You may want to see: Publication 535 Business Expenses 925 Passive Activity and At-Risk Rules 929 Tax Rules for Children and Dependents Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 4952 Investment Interest Expense Deduction See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Irs forms 2009 Limits on Deductions Your deductions for investment expenses may be limited by: The at-risk rules, The passive activity loss limits, The limit on investment interest, or The 2% limit on certain miscellaneous itemized deductions. Irs forms 2009 The at-risk rules and passive activity rules are explained briefly in this section. Irs forms 2009 The limit on investment interest is explained later in this chapter under Interest Expenses . Irs forms 2009 The 2% limit is explained later in this chapter under Expenses of Producing Income . Irs forms 2009 At-risk rules. Irs forms 2009   Special at-risk rules apply to most income-producing activities. Irs forms 2009 These rules limit the amount of loss you can deduct to the amount you risk losing in the activity. Irs forms 2009 Generally, this is the cash and the adjusted basis of property you contribute to the activity. Irs forms 2009 It also includes money you borrow for use in the activity if you are personally liable for repayment or if you use property not used in the activity as security for the loan. Irs forms 2009 For more information, see Publication 925. Irs forms 2009 Passive activity losses and credits. Irs forms 2009   The amount of losses and tax credits you can claim from passive activities is limited. Irs forms 2009 Generally, you are allowed to deduct passive activity losses only up to the amount of your passive activity income. Irs forms 2009 Also, you can use credits from passive activities only against tax on the income from passive activities. Irs forms 2009 There are exceptions for certain activities, such as rental real estate activities. Irs forms 2009 Passive activity. Irs forms 2009   A passive activity generally is any activity involving the conduct of any trade or business in which you do not materially participate and any rental activity. Irs forms 2009 However, if you are involved in renting real estate, the activity is not a passive activity if both of the following are true. Irs forms 2009 More than one-half of the personal services you perform during the year in all trades or businesses are performed in real property trades or businesses in which you materially participate. Irs forms 2009 You perform more than 750 hours of services during the year in real property trades or businesses in which you materially participate. Irs forms 2009  The term “trade or business” generally means any activity that involves the conduct of a trade or business, is conducted in anticipation of starting a trade or business, or involves certain research or experimental expenditures. Irs forms 2009 However, it does not include rental activities or certain activities treated as incidental to holding property for investment. Irs forms 2009   You are considered to materially participate in an activity if you are involved on a regular, continuous, and substantial basis in the operations of the activity. Irs forms 2009 Other income (nonpassive income). Irs forms 2009    Generally, you can use losses from passive activities only to offset income from passive activities. Irs forms 2009 You cannot use passive activity losses to offset your other income, such as your wages or your portfolio income. Irs forms 2009 Portfolio income includes gross income from interest, dividends, annuities, or royalties that is not derived in the ordinary course of a trade or business. Irs forms 2009 It also includes gains or losses (not derived in the ordinary course of a trade or business) from the sale or trade of property (other than an interest in a passive activity) producing portfolio income or held for investment. Irs forms 2009 This includes capital gain distributions from mutual funds (and other regulated investment companies) and real estate investment trusts. Irs forms 2009   You cannot use passive activity losses to offset Alaska Permanent Fund dividends. Irs forms 2009 Expenses. Irs forms 2009   Do not include in the computation of your passive activity income or loss: Expenses (other than interest) that are clearly and directly allocable to your portfolio income, or Interest expense properly allocable to portfolio income. Irs forms 2009 However, this interest and other expenses may be subject to other limits. Irs forms 2009 These limits are explained in the rest of this chapter. Irs forms 2009 Additional information. Irs forms 2009   For more information about determining and reporting income and losses from passive activities, see Publication 925. Irs forms 2009 Interest Expenses This section discusses interest expenses you may be able to deduct as an investor. Irs forms 2009 For information on business interest, see chapter 4 of Publication 535. Irs forms 2009 You cannot deduct personal interest expenses other than qualified home mortgage interest, as explained in Publication 936, Home Mortgage Interest Deduction, and interest on certain student loans, as explained in Publication 970. Irs forms 2009 Investment Interest If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Irs forms 2009 You can deduct investment interest subject to the limit discussed later. Irs forms 2009 However, you cannot deduct interest you incurred to produce tax-exempt income. Irs forms 2009 See Tax-exempt income under Nondeductible Expenses, later. Irs forms 2009 You also cannot deduct interest expenses on straddles discussed under Interest expense and carrying charges on straddles , later. Irs forms 2009 Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Irs forms 2009 Investment property. Irs forms 2009   Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Irs forms 2009 It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Irs forms 2009 Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Irs forms 2009 Partners, shareholders, and beneficiaries. Irs forms 2009   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Irs forms 2009 Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Irs forms 2009 Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Irs forms 2009 The allocation is not affected by the use of property that secures the debt. Irs forms 2009 Example 1. Irs forms 2009 You borrow $10,000 and use $8,000 to buy stock. Irs forms 2009 You use the other $2,000 to buy items for your home. Irs forms 2009 Since 80% of the debt is used for, and allocated to, investment purposes, 80% of the interest on that debt is investment interest. Irs forms 2009 The other 20% is nondeductible personal interest. Irs forms 2009 Debt proceeds received in cash. Irs forms 2009   If you receive debt proceeds in cash, the proceeds are generally not treated as investment property. Irs forms 2009 Debt proceeds deposited in account. Irs forms 2009   If you deposit debt proceeds in an account, that deposit is treated as investment property, regardless of whether the account bears interest. Irs forms 2009 But, if you withdraw the funds and use them for another purpose, you must reallocate the debt to determine the amount considered to be for investment purposes. Irs forms 2009 Example 2. Irs forms 2009 Assume in Example 1 that you borrowed the money on March 1 and immediately bought the stock for $8,000. Irs forms 2009 You did not buy the household items until June 1. Irs forms 2009 You had deposited the $2,000 in the bank. Irs forms 2009 You had no other transactions on the bank account until June. Irs forms 2009 You did not sell the stock, and you made no principal payments on the debt. Irs forms 2009 You paid interest from another account. Irs forms 2009 The $8,000 is treated as being used for an investment purpose. Irs forms 2009 The $2,000 is treated as being used for an investment purpose for the 3-month period. Irs forms 2009 Your total interest expense for 3 months on this debt is investment interest. Irs forms 2009 In June, when you spend the $2,000 for household items, you must begin to allocate 80% of the debt and the interest expense to investment purposes and 20% to personal purposes. Irs forms 2009 Amounts paid within 30 days. Irs forms 2009   If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment (up to the amount of the proceeds) made from any account you own, or from cash, as made from those proceeds. Irs forms 2009 This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. Irs forms 2009   If you received the loan proceeds in cash, you can treat the payment as made on the date you received the cash instead of the date you actually made the payment. Irs forms 2009 Payments on debt may require new allocation. Irs forms 2009   As you repay a debt used for more than one purpose, you must reallocate the balance. Irs forms 2009 You must first reduce the amount allocated to personal purposes by the repayment. Irs forms 2009 You then reallocate the rest of the debt to find what part is for investment purposes. Irs forms 2009 Example 3. Irs forms 2009 If, in Example 2 , you repay $500 on November 1, the entire repayment is applied against the amount allocated to personal purposes. Irs forms 2009 The debt balance is now allocated as $8,000 for investment purposes and $1,500 for personal purposes. Irs forms 2009 Until the next reallocation is necessary, 84% ($8,000 ÷ $9,500) of the debt and the interest expense is allocated to investment. Irs forms 2009 Pass-through entities. Irs forms 2009   If you use borrowed funds to buy an interest in a partnership or S corporation, then the interest on those funds must be allocated based on the assets of the entity. Irs forms 2009 If you contribute to the capital of the entity, you can make the allocation using any reasonable method. Irs forms 2009 Additional allocation rules. Irs forms 2009   For more information about allocating interest expense, see chapter 4 of Publication 535. Irs forms 2009 When To Deduct Investment Interest If you use the cash method of accounting, you must pay the interest before you can deduct it. Irs forms 2009 If you use an accrual method of accounting, you can deduct interest over the period it accrues, regardless of when you pay it. Irs forms 2009 For an exception, see Unpaid expenses owed to related party under When To Report Investment Expenses, later in this chapter. Irs forms 2009 Example. Irs forms 2009 You borrowed $1,000 on August 26, 2013, payable in 90 days at 12% interest. Irs forms 2009 On November 26, 2013, you paid this with a new note for $1,030, due on February 26, 2014. Irs forms 2009 If you use the cash method of accounting, you cannot deduct any part of the $30 interest on your return for 2013 because you did not actually pay it. Irs forms 2009 If you use an accrual method, you may be able to deduct a portion of the interest on the loans through December 31, 2013, on your return for 2013. Irs forms 2009 Interest paid in advance. Irs forms 2009   Generally, if you pay interest in advance for a period that goes beyond the end of the tax year, you must spread the interest over the tax years to which it belongs under the OID rules discussed in chapter 1. Irs forms 2009 You can deduct in each year only the interest for that year. Irs forms 2009 Interest on margin accounts. Irs forms 2009   If you are a cash method taxpayer, you can deduct interest on margin accounts to buy taxable securities as investment interest in the year you paid it. Irs forms 2009 You are considered to have paid interest on these accounts only when you actually pay the broker or when payment becomes available to the broker through your account. Irs forms 2009 Payment may become available to the broker through your account when the broker collects dividends or interest for your account, or sells securities held for you or received from you. Irs forms 2009   You cannot deduct any interest on money borrowed for personal reasons. Irs forms 2009 Limit on interest deduction for market discount bonds. Irs forms 2009   The amount you can deduct for interest expense you paid or accrued during the year to buy or carry a market discount bond may be limited. Irs forms 2009 This limit does not apply if you accrue the market discount and include it in your income currently. Irs forms 2009   Under this limit, the interest is deductible only to the extent it is more than: The total interest and OID includible in gross income for the bond for the year, plus The market discount for the number of days you held the bond during the year. Irs forms 2009 Figure the amount in (2) above using the rules for figuring accrued market discount in chapter 1 under Market Discount Bonds . Irs forms 2009 Interest not deducted due to limit. Irs forms 2009   In the year you dispose of the bond, you can deduct any interest expense you were not allowed to deduct in earlier years because of the limit. Irs forms 2009 Choosing to deduct disallowed interest expense before the year of disposition. Irs forms 2009   You can choose to deduct disallowed interest expense in any year before the year you dispose of the bond, up to your net interest income from the bond during the year. Irs forms 2009 The rest of the disallowed interest expense remains deductible in the year you dispose of the bond. Irs forms 2009 Net interest income. Irs forms 2009   This is the interest income (including OID) from the bond that you include in income for the year, minus the interest expense paid or accrued during the year to purchase or carry the bond. Irs forms 2009 Limit on interest deduction for short-term obligations. Irs forms 2009   If the current income inclusion rules discussed in chapter 1 under Discount on Short-Term Obligations do not apply to you, the amount you can deduct for interest expense you paid or accrued during the year to buy or carry a short-term obligation is limited. Irs forms 2009   The interest is deductible only to the extent it is more than: The amount of acquisition discount or OID on the obligation for the tax year, plus The amount of any interest payable on the obligation for the year that is not included in income because of your accounting method (other than interest taken into account in determining the amount of acquisition discount or OID). Irs forms 2009 The method of determining acquisition discount and OID for short-term obligations is discussed in chapter 1 under Discount on Short-Term Obligations . Irs forms 2009 Interest not deducted due to limit. Irs forms 2009   In the year you dispose of the obligation, or, if you choose, in another year in which you have net interest income from the obligation, you can deduct any interest expense you were not allowed to deduct for an earlier year because of the limit. Irs forms 2009 Follow the same rules provided in the earlier discussion under Limit on interest deduction for market discount bonds , earlier. Irs forms 2009 Limit on Deduction Generally, your deduction for investment interest expense is limited to your net investment income. Irs forms 2009 You can carry over the amount of investment interest you could not deduct because of this limit to the next tax year. Irs forms 2009 The interest carried over is treated as investment interest paid or accrued in that next year. Irs forms 2009 You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Irs forms 2009 Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Irs forms 2009 Investment income. Irs forms 2009   This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Irs forms 2009 Investment income does not include Alaska Permanent Fund dividends. Irs forms 2009 It also does not include qualified dividends or net capital gain unless you choose to include them. Irs forms 2009 Choosing to include qualified dividends. Irs forms 2009   Investment income generally does not include qualified dividends, discussed in chapter 1. Irs forms 2009 However, you can choose to include all or part of your qualified dividends in investment income. Irs forms 2009   You make this choice by completing Form 4952, line 4g, according to its instructions. Irs forms 2009   If you choose to include any of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Irs forms 2009 Choosing to include net capital gain. Irs forms 2009    Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Irs forms 2009 However, you can choose to include all or part of your net capital gain in investment income. Irs forms 2009   You make this choice by completing Form 4952, line 4g, according to its instructions. Irs forms 2009   If you choose to include any of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Irs forms 2009   For more information about the capital gains rates, see Capital Gain Tax Rates in chapter 4. Irs forms 2009    Before making either choice, consider the overall effect on your tax liability. Irs forms 2009 Compare your tax if you make one or both of these choices with your tax if you do not. Irs forms 2009 Investment income of child reported on parent's return. Irs forms 2009   Investment income includes the part of your child's interest and dividend income you choose to report on your return. Irs forms 2009 If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814. Irs forms 2009 Include it on line 4a of Form 4952. Irs forms 2009 Example. Irs forms 2009 Your 8-year-old son has interest income of $2,200, which you choose to report on your own return. Irs forms 2009 You enter $2,200 on Form 8814, lines 1a and 4, and $200 on lines 6 and 12 and complete Part II. Irs forms 2009 Also enter $200 on Form 1040, line 21. Irs forms 2009 Your investment income includes this $200. Irs forms 2009 Child's qualified dividends. Irs forms 2009   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Irs forms 2009 However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Irs forms 2009   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Irs forms 2009 Child's Alaska Permanent Fund dividends. Irs forms 2009   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Irs forms 2009 To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Irs forms 2009 Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Irs forms 2009 Subtract the result from the amount on Form 8814, line 12. Irs forms 2009 Example. Irs forms 2009 Your 10-year-old child has taxable interest income of $4,000 and Alaska Permanent Fund dividends of $2,000. Irs forms 2009 You choose to report this on your return. Irs forms 2009 You enter $4,000 on Form 8814, line 1a, $2,000 on line 2a, and $6,000 on line 4. Irs forms 2009 You then enter $4,000 on Form 8814, lines 6 and 12, and Form 1040, line 21. Irs forms 2009 You figure the amount of your child's income that you can consider your investment income as follows: $4,000 − ($4,000 × ($2,000 ÷ $6,000)) = $2,667 You include the result, $2,667, on Form 4952, line 4a. Irs forms 2009 Child's capital gain distributions. Irs forms 2009   If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D (Form 1040), line 13, or Form 1040, line 13) generally does not count as investment income. Irs forms 2009 However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Irs forms 2009   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Irs forms 2009 Investment expenses. Irs forms 2009   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Irs forms 2009 Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Irs forms 2009 Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A (Form 1040), line 27. Irs forms 2009 See Expenses of Producing Income , later, for a discussion of the 2% limit. Irs forms 2009 Losses from passive activities. Irs forms 2009   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Irs forms 2009 See Publication 925 for information about passive activities. Irs forms 2009 Example. Irs forms 2009 Ted is a partner in a partnership that operates a business. Irs forms 2009 However, he does not materially participate in the partnership's business. Irs forms 2009 Ted's interest in the partnership is considered a passive activity. Irs forms 2009 Ted's investment income from interest and dividends (other than qualified dividends) is $10,000. Irs forms 2009 His investment expenses (other than interest) are $3,200 after taking into account the 2% limit on miscellaneous itemized deductions. Irs forms 2009 His investment interest expense is $8,000. Irs forms 2009 Ted also has income from the partnership of $2,000. Irs forms 2009 Ted figures his net investment income and the limit on his investment interest expense deduction in the following way: Total investment income $10,000 Minus: Investment expenses (other than interest) 3,200 Net investment income $6,800 Deductible investment interest expense for the year $6,800 The $2,000 of income from the passive activity is not used in determining Ted's net investment income. Irs forms 2009 His investment interest deduction for the year is limited to $6,800, the amount of his net investment income. Irs forms 2009 Form 4952 Use Form 4952 to figure your deduction for investment interest. Irs forms 2009 See Form 4952 for more information. Irs forms 2009 Exception to use of Form 4952. Irs forms 2009   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Irs forms 2009 Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Irs forms 2009 You do not have any other deductible investment expenses. Irs forms 2009 You have no carryover of investment interest expense from 2012. Irs forms 2009   If you meet all of these tests, you can deduct all of your investment interest. Irs forms 2009    Bond Premium Amortization If you pay a premium to buy a bond, the premium is part of your basis in the bond. Irs forms 2009 If the bond yields taxable interest, you can choose to amortize the premium. Irs forms 2009 This generally means that each year, over the life of the bond, you use a part of the premium to reduce the amount of interest includible in your income. Irs forms 2009 If you make this choice, you must reduce your basis in the bond by the amortization for the year. Irs forms 2009 If the bond yields tax-exempt interest, you must amortize the premium. Irs forms 2009 This amortized amount is not deductible in determining taxable income. Irs forms 2009 However, each year you must reduce your basis in the bond (and tax-exempt interest otherwise reportable on Form 1040, line 8b) by the amortization for the year. Irs forms 2009 Bond premium. Irs forms 2009   Bond premium is the amount by which your basis in the bond right after you get it is more than the total of all amounts payable on the bond after you get it (other than payments of qualified stated interest). Irs forms 2009 For example, a bond with a maturity value of $1,000 generally would have a $50 premium if you buy it for $1,050. Irs forms 2009 Special rules to determine amounts payable on a bond. Irs forms 2009   For special rules that apply to determine the amounts payable on a variable rate bond, an inflation-indexed debt instrument, a bond that provides for certain alternative payment schedules (for example, a bond callable prior to the stated maturity date of the bond), or a bond that provides for remote or incidental contingencies, see Regulations section 1. Irs forms 2009 171-3. Irs forms 2009 Basis. Irs forms 2009   In general, your basis for figuring bond premium amortization is the same as your basis for figuring any loss on the sale of the bond. Irs forms 2009 However, you may need to use a different basis for: Convertible bonds, Bonds you got in a trade, and Bonds whose basis has to be determined using the basis of the person who transferred the bond to you. Irs forms 2009 See Regulations section 1. Irs forms 2009 171-1(e). Irs forms 2009 Dealers. Irs forms 2009   A dealer in taxable bonds (or anyone who holds them mainly for sale to customers in the ordinary course of a trade or business or who would properly include bonds in inventory at the close of the tax year) cannot claim a deduction for amortizable bond premium. Irs forms 2009   See section 75 of the Internal Revenue Code for the treatment of bond premium by a dealer in tax-exempt bonds. Irs forms 2009 How To Figure Amortization For bonds issued after September 27, 1985, you must amortize bond premium using a constant yield method on the basis of the bond's yield to maturity, determined by using the bond's basis and compounding at the close of each accrual period. Irs forms 2009 Constant yield method. Irs forms 2009   Figure the bond premium amortization for each accrual period as follows. Irs forms 2009 Step 1: Determine your yield. Irs forms 2009   Your yield is the discount rate that, when used in figuring the present value of all remaining payments to be made on the bond (including payments of qualified stated interest), produces an amount equal to your basis in the bond. Irs forms 2009 Figure the yield as of the date you got the bond. Irs forms 2009 It must be constant over the term of the bond and must be figured to at least two decimal places when expressed as a percentage. Irs forms 2009   If you do not know the yield, consult your broker or tax advisor. Irs forms 2009 Databases available to them are likely to show the yield at the date of purchase. Irs forms 2009 Step 2: Determine the accrual periods. Irs forms 2009   You can choose the accrual periods to use. Irs forms 2009 They may be of any length and may vary in length over the term of the bond, but each accrual period can be no longer than 1 year and each scheduled payment of principal or interest must occur either on the first or the final day of an accrual period. Irs forms 2009 The computation is simplest if accrual periods are the same as the intervals between interest payment dates. Irs forms 2009 Step 3: Determine the bond premium for the accrual period. Irs forms 2009   To do this, multiply your adjusted acquisition price at the beginning of the accrual period by your yield. Irs forms 2009 Then subtract the result from the qualified stated interest for the period. Irs forms 2009   Your adjusted acquisition price at the beginning of the first accrual period is the same as your basis. Irs forms 2009 After that, it is your basis decreased by the amount of bond premium amortized for earlier periods and the amount of any payment previously made on the bond other than a payment of qualified stated interest. Irs forms 2009 Example. Irs forms 2009 On February 1, 2012, you bought a taxable bond for $110,000. Irs forms 2009 The bond has a stated principal amount of $100,000, payable at maturity on February 1, 2019, making your premium $10,000 ($110,000 − $100,000). Irs forms 2009 The bond pays qualified stated interest of $10,000 on February 1 of each year. Irs forms 2009 Your yield is 8. Irs forms 2009 07439% compounded annually. Irs forms 2009 You choose to use annual accrual periods ending on February 1 of each year. Irs forms 2009 To find your bond premium amortization for the accrual period ending on February 1, 2013, you multiply the adjusted acquisition price at the beginning of the period ($110,000) by your yield. Irs forms 2009 When you subtract the result ($8,881. Irs forms 2009 83) from the qualified stated interest for the period ($10,000), you find that your bond premium amortization for the period is $1,118. Irs forms 2009 17. Irs forms 2009 Special rules to figure amortization. Irs forms 2009   For special rules to figure the bond premium amortization on a variable rate bond, an inflation-indexed debt instrument, a bond that provides for certain alternative payment schedules (for example, a bond callable prior to the stated maturity date of the bond), or a bond that provides for remote or incidental contingencies, see Regulations section 1. Irs forms 2009 171-3. Irs forms 2009 Bonds Issued Before September 28, 1985 For these bonds, you can amortize bond premium using any reasonable method. Irs forms 2009 Reasonable methods include: The straight-line method, and The Revenue Ruling 82-10 method. Irs forms 2009 Straight-line method. Irs forms 2009   Under this method, the amount of your bond premium amortization is the same each month. Irs forms 2009 Divide the number of months you held the bond during the year by the number of months from the beginning of the tax year (or, if later, the date of acquisition) to the date of maturity or earlier call date. Irs forms 2009 Then multiply the result by the bond premium (reduced by any bond premium amortization claimed in earlier years). Irs forms 2009 This gives you your bond premium amortization for the year. Irs forms 2009 Revenue Ruling 82-10 method. Irs forms 2009   Under this method, the amount of your bond premium amortization increases each month over the life of the bond. Irs forms 2009 This method is explained in Revenue Ruling 82-10, 1982-1 C. Irs forms 2009 B. Irs forms 2009 46. Irs forms 2009 Choosing To Amortize You choose to amortize the premium on taxable bonds by reporting the amortization for the year on your income tax return for the first tax year you want the choice to apply. Irs forms 2009 You should attach a statement to your return that you are making this choice under section 171. Irs forms 2009 See How To Report Amortization, next. Irs forms 2009 This choice is binding for the year you make it and for later tax years. Irs forms 2009 It applies to all taxable bonds you own in the year you make the choice and also to those you acquire in later years. Irs forms 2009 You can change your decision to amortize bond premium only with the written approval of the IRS. Irs forms 2009 To request approval, use Form 3115. Irs forms 2009 For more information on requesting approval, see section 5 of the Appendix to Revenue Procedure 2011-14 in Internal Revenue Bulletin 2011-4. Irs forms 2009 You can find Revenue Procedure 2011-14 at www. Irs forms 2009 irs. Irs forms 2009 gov/irb/2011-04_IRB/ar08. Irs forms 2009 html. Irs forms 2009 How To Report Amortization Subtract the bond premium amortization from your interest income from these bonds. Irs forms 2009 Report the bond's interest on Schedule B (Form 1040A or 1040), line 1. Irs forms 2009 Under your last entry on line 1, put a subtotal of all interest listed on line 1. Irs forms 2009 Below this subtotal, print “ABP Adjustment,” and the total interest you received. Irs forms 2009 Subtract this amount from the subtotal, and enter the result on line 2. Irs forms 2009 Bond premium amortization more than interest. Irs forms 2009   If the amount of your bond premium amortization for an accrual period is more than the qualified stated interest for the period, you can deduct the difference as a miscellaneous itemized deduction on Schedule A (Form 1040), line 28. Irs forms 2009    But your deduction is limited to the amount by which your total interest inclusions on the bond in prior accrual periods is more than your total bond premium deductions on the bond in prior periods. Irs forms 2009 Any amount you cannot deduct because of this limit can be carried forward to the next accrual period. Irs forms 2009 Pre-1998 election to amortize bond premium. Irs forms 2009   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Irs forms 2009 Bonds acquired before October 23, 1986. Irs forms 2009   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit. Irs forms 2009 Bonds acquired after October 22, 1986, but before 1988. Irs forms 2009    The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you choose to treat it as an offset to interest income on the bond. Irs forms 2009 Expenses of Producing Income You deduct investment expenses (other than interest expenses) as miscellaneous itemized deductions on Schedule A (Form 1040). Irs forms 2009 To be deductible, these expenses must be ordinary and necessary expenses paid or incurred: To produce or collect income, or To manage property held for producing income. Irs forms 2009 The expenses must be directly related to the income or income-producing property, and the income must be taxable to you. Irs forms 2009 The deduction for most income-producing expenses is subject to a 2% limit that also applies to certain other miscellaneous itemized deductions. Irs forms 2009 The amount deductible is limited to the total of these miscellaneous deductions that is more than 2% of your adjusted gross income. Irs forms 2009 For information on how to report expenses of producing income, see How To Report Investment Expenses , later. Irs forms 2009 Attorney or accounting fees. Irs forms 2009   You can deduct attorney or accounting fees that are necessary to produce or collect taxable income. Irs forms 2009 However, in some cases, attorney or accounting fees are part of the basis of property. Irs forms 2009 See Basis of Investment Property in chapter 4. Irs forms 2009 Automatic investment service and dividend reinvestment plans. Irs forms 2009   A bank may offer its checking account customers an automatic investment service so that, for a charge, each customer can choose to invest a part of the checking account each month in common stock. Irs forms 2009 Or a bank that is a dividend disbursing agent for a number of publicly-owned corporations may set up an automatic dividend reinvestment service. Irs forms 2009 Through that service, cash dividends are reinvested in more shares of stock after the bank deducts a service charge. Irs forms 2009   A corporation in which you own stock also may have a dividend reinvestment plan. Irs forms 2009 This plan lets you choose to use your dividends to buy more shares of stock in the corporation instead of receiving the dividends in cash. Irs forms 2009   You can deduct the monthly service charge you pay to a bank to participate in an automatic investment service. Irs forms 2009 If you participate in a dividend reinvestment plan, you can deduct any service charge subtracted from your cash dividends before the dividends are used to buy more shares of stock. Irs forms 2009 Deduct the charges in the year you pay them. Irs forms 2009 Clerical help and office rent. Irs forms 2009   You can deduct office expenses, such as rent and clerical help, you incurred in connection with your investments and collecting the taxable income on your investments. Irs forms 2009 Cost of replacing missing securities. Irs forms 2009   To replace your taxable securities that are mislaid, lost, stolen, or destroyed, you may have to post an indemnity bond. Irs forms 2009 You can deduct the premium you pay to buy the indemnity bond and the related incidental expenses. Irs forms 2009   You may, however, get a refund of part of the bond premium if the missing securities are recovered within a specified time. Irs forms 2009 Under certain types of insurance policies, you can recover some of the expenses. Irs forms 2009   If you receive the refund in the tax year you pay the amounts, you can deduct only the difference between the expenses paid and the amount refunded. Irs forms 2009 If the refund is made in a later tax year, you must include the refund in income in the year you received it, but only to the extent that the expenses decreased your tax in the year you deducted them. Irs forms 2009 Fees to collect income. Irs forms 2009   You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect investment income, such as your taxable bond or mortgage interest, or your dividends on shares of stock. Irs forms 2009 Fees to buy or sell. Irs forms 2009   You cannot deduct a fee you pay to a broker to acquire investment property, such as stocks or bonds. Irs forms 2009 You must add the fee to the cost of the property. Irs forms 2009 See Basis of Investment Property in chapter 4. Irs forms 2009    You cannot deduct any broker's fees, commissions, or option premiums you pay (or that were netted out) in connection with the sale of investment property. Irs forms 2009 They can be used only to figure gain or loss from the sale. Irs forms 2009 See Reporting Capital Gains and Losses , in chapter 4, for more information about the treatment of these sale expenses. Irs forms 2009 Investment counsel and advice. Irs forms 2009   You can deduct fees you pay for counsel and advice about investments that produce taxable income. Irs forms 2009 This includes amounts you pay for investment advisory services. Irs forms 2009 Safe deposit box rent. Irs forms 2009   You can deduct rent you pay for a safe deposit box if you use the box to store taxable income-producing stocks, bonds, or other investment-related papers and documents. Irs forms 2009 If you also use the box to store tax-exempt securities or personal items, you can deduct only part of the rent. Irs forms 2009 See Tax-exempt income under Nondeductible Expenses, later, to figure what part you can deduct. Irs forms 2009 State and local transfer taxes. Irs forms 2009   You cannot deduct the state and local transfer taxes you pay when you buy or sell securities. Irs forms 2009 If you pay these transfer taxes when you buy securities, you must treat them as part of the cost of the property. Irs forms 2009 If you pay these transfer taxes when you sell securities, you must treat them as a reduction in the amount realized. Irs forms 2009 Trustee's commissions for revocable trust. Irs forms 2009   If you set up a revocable trust and have its income distributed to you, you can deduct the commission you pay the trustee for managing the trust to the extent it is to produce or collect taxable income or to manage property. Irs forms 2009 However, you cannot deduct any part of the commission used for producing or collecting tax-exempt income or for managing property that produces tax-exempt income. Irs forms 2009   If you are a cash-basis taxpayer and pay the commissions for several years in advance, you must deduct a part of the commission each year. Irs forms 2009 You cannot deduct the entire amount in the year you pay it. Irs forms 2009 Investment expenses from pass-through entities. Irs forms 2009   If you hold an interest in a partnership, S corporation, real estate mortgage investment conduit (REMIC), or a nonpublicly offered mutual fund, you can deduct your share of that entity's investment expenses. Irs forms 2009 A partnership or S corporation will show your share of these expenses on your Schedule K-1 (Form 1065) or Schedule K-1 (Form 1120S). Irs forms 2009 A nonpublicly offered mutual fund will indicate your share of these expenses in box 5 of Form 1099-DIV (or substitute statement). Irs forms 2009 Publicly-offered mutual funds are discussed later. Irs forms 2009   If you hold an interest in a REMIC, any expenses relating to your residual interest investment will be shown on Schedule Q (Form 1066), line 3b. Irs forms 2009 Any expenses relating to your regular interest investment will appear in box 5 of Form 1099-INT (or substitute statement) or box 9 of Form 1099-OID (or substitute statement). Irs forms 2009   Report your share of these investment expenses on Schedule A (Form 1040), subject to the 2% limit, in the same manner as your other investment expenses. Irs forms 2009 Including mutual fund or REMIC expenses in income. Irs forms 2009   Your share of the investment expenses of a REMIC or a nonpublicly offered mutual fund, as described above, are considered to be indirect deductions through that pass-through entity. Irs forms 2009 You must include in your gross income an amount equal to the expenses allocated to you, whether or not you are able to claim a deduction for those expenses. Irs forms 2009 If you are a shareholder in a nonpublicly offered mutual fund, you must include on your return the full amount of ordinary dividends or other distributions of stock, as shown in box 1a of Form 1099-DIV (or substitute statement). Irs forms 2009 If you are a residual interest holder in a REMIC, you must report as ordinary income on Schedule E (Form 1040) the total amounts shown on Schedule Q (Form 1066), lines 1b and 3b. Irs forms 2009 If you are a REMIC regular interest holder, you must include the amount of any expense allocation you received on Form 1040, line 8a. Irs forms 2009 Publicly-offered mutual funds. Irs forms 2009   Most mutual funds are publicly offered. Irs forms 2009 These mutual funds, generally, are traded on an established securities exchange. Irs forms 2009 These funds do not pass investment expenses through to you. Irs forms 2009 Instead, the dividend income they report to you in box 1a of Form 1099-DIV (or substitute statement) is already reduced by your share of investment expenses. Irs forms 2009 As a result, you cannot deduct the expenses on your return. Irs forms 2009   Include the amount from box 1a of Form 1099-DIV (or substitute statement) in your income. Irs forms 2009    A publicly offered mutual fund is one that: Is continuously offered pursuant to a public offering, Is regularly traded on an established securities market, and Is held by or for no fewer than 500 persons at any time during the year. Irs forms 2009 Contact your mutual fund if you are not sure whether it is publicly offered. Irs forms 2009 Nondeductible Expenses Some expenses that you incur as an investor are not deductible. Irs forms 2009 Stockholders' meetings. Irs forms 2009   You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you have no interest other than owning stock. Irs forms 2009 This is true even if your purpose in attending is to get information that would be useful in making further investments. Irs forms 2009 Investment-related seminar. Irs forms 2009   You cannot deduct expenses for attending a convention, seminar, or similar meeting for investment purposes. Irs forms 2009 Single-premium life insurance, endowment, and annuity contracts. Irs forms 2009   You cannot deduct interest on money you borrow to buy or carry a single-premium life insurance, endowment, or annuity contract. Irs forms 2009 Used as collateral. Irs forms 2009   If you use a single premium annuity contract as collateral to obtain or continue a mortgage loan, you cannot deduct any interest on the loan that is collateralized by the annuity contract. Irs forms 2009 Figure the amount of interest expense disallowed by multiplying the current interest rate on the mortgage loan by the lesser of the amount of the annuity contract used as collateral or the amount of the loan. Irs forms 2009 Borrowing on insurance. Irs forms 2009   Generally, you cannot deduct interest on money you borrow to buy or carry a life insurance, endowment, or annuity contract if you plan to systematically borrow part or all of the increases in the cash value of the contract. Irs forms 2009 This rule applies to the interest on the total amount borrowed to buy or carry the contract, not just the interest on the borrowed increases in the cash value. Irs forms 2009 Tax-exempt income. Irs forms 2009   You cannot deduct expenses you incur to produce tax-exempt income. Irs forms 2009 Nor can you deduct interest on money you borrow to buy tax-exempt securities or shares in a mutual fund or other regulated investment company that distributes only exempt-interest dividends. Irs forms 2009 Short-sale expenses. Irs forms 2009   The rule disallowing a deduction for interest expenses on tax-exempt securities applies to amounts you pay in connection with personal property used in a short sale or amounts paid by others for the use of any collateral in connection with the short sale. Irs forms 2009 However, it does not apply to the expenses you incur if you deposit cash as collateral for the property used in the short sale and the cash does not earn a material return during the period of the sale. Irs forms 2009 Short sales are discussed in Short Sales in chapter 4. Irs forms 2009 Expenses for both tax-exempt and taxable income. Irs forms 2009   You may have expenses that are for both tax-exempt and taxable income. Irs forms 2009 If you cannot specifically identify what part of the expenses is for each type of income, you can divide the expenses, using reasonable proportions based on facts and circumstances. Irs forms 2009 You must attach a statement to your return showing how you divided the expenses and stating that each deduction claimed is not based on tax-exempt income. Irs forms 2009   One accepted method for dividing expenses is to do it in the same proportion that each type of income is to the total income. Irs forms 2009 If the expenses relate in part to capital gains and losses, include the gains, but not the losses, in figuring this proportion. Irs forms 2009 To find the part of the expenses that is for the tax-exempt income, divide your tax-exempt income by the total income and multiply your expenses by the result. Irs forms 2009 Example. Irs forms 2009 You received $6,000 interest; $4,800 was tax-exempt and $1,200 was taxable. Irs forms 2009 In earning this income, you had $500 of expenses. Irs forms 2009 You cannot specifically identify the amount of each expense item that is for each income item, so you must divide your expenses. Irs forms 2009 80% ($4,800 tax-exempt interest divided by $6,000 total interest) of your expenses is for the tax-exempt income. Irs forms 2009 You cannot deduct $400 (80% of $500) of the expenses. Irs forms 2009 You can deduct $100 (the rest of the expenses) because they are for the taxable interest. Irs forms 2009 State income taxes. Irs forms 2009   If you itemize your deductions, you can deduct, as taxes, state income taxes on interest income that is exempt from federal income tax. Irs forms 2009 But you cannot deduct, as either taxes or investment expenses, state income taxes on other exempt income. Irs forms 2009 Interest expense and carrying charges on straddles. Irs forms 2009   You cannot deduct interest and carrying charges allocable to personal property that is part of a straddle. Irs forms 2009 The nondeductible interest and carrying charges are added to the basis of the straddle property. Irs forms 2009 However, this treatment does not apply if: All the offsetting positions making up the straddle either consist of one or more qualified covered call options and the optioned stock, or consist of section 1256 contracts (and the straddle is not part of a larger straddle); or The straddle is a hedging transaction. Irs forms 2009  For information about straddles, including definitions of the terms used in this discussion, see Straddles in chapter 4. Irs forms 2009   Interest includes any amount you pay or incur in connection with personal property used in a short sale. Irs forms 2009 However, you must first apply the rules discussed in Payments in lieu of dividends under Short Sales in chapter 4. Irs forms 2009   To determine the interest on market discount bonds and short-term obligations that are part of a straddle, you must first apply the rules discussed under Limit on interest deduction for market discount bonds and Limit on interest deduction for short-term obligations (both under Interest Expenses, earlier). Irs forms 2009 Nondeductible amount. Irs forms 2009   Figure the nondeductible interest and carrying charges on straddle property as follows. Irs forms 2009 Add: Interest on indebtedness incurred or continued to buy or carry the personal property, and All other amounts (including charges to insure, store, or transport the personal property) paid or incurred to carry the personal property. Irs forms 2009 Subtract from the amount in (1): Interest (including OID) includible in gross income for the year on the personal property, Any income from the personal property treated as ordinary income on the disposition of short-term government obligations or as ordinary income under the market discount and short-term bond provisions — see Discount on Debt Instruments in chapter 1, The dividends includible in gross income for the year from the personal property, and Any payment on a loan of the personal property for use in a short sale that is includible in gross income. Irs forms 2009 Basis adjustment. Irs forms 2009   Add the nondeductible amount to the basis of your straddle property. Irs forms 2009 How To Report Investment Expenses To deduct your investment expenses, you must itemize deductions on Schedule A (Form 1040). Irs forms 2009 Enter your deductible investment interest expense on Schedule A (Form1040), line 14. Irs forms 2009 Include any deductible short sale expenses. Irs forms 2009 (See Short Sales in chapter 4 for information on these expenses. Irs forms 2009 ) Also attach a completed Form 4952 if you used that form to figure your investment interest expense. Irs forms 2009 Enter the total amount of your other investment expenses (other than interest expenses) on Schedule A (Form 1040), line 23. Irs forms 2009 List the type and amount of each expense on the dotted lines next to line 23. Irs forms 2009 (If necessary, you can show the required information on an attached statement. Irs forms 2009 ) For information on how to report amortizable bond premium, see Bond Premium Amortization , earlier in this chapter. Irs forms 2009 When To Report Investment Expenses If you use the cash method to report income and expenses, you generally deduct your expenses, except for certain prepaid interest, in the year you pay them. Irs forms 2009 If you use an accrual method, you generally deduct your expenses when you incur a liability for them, rather than when you pay them. Irs forms 2009 Also see When To Deduct Investment Interest , earlier in this chapter. Irs forms 2009 Unpaid expenses owed to related party. Irs forms 2009   If you use an accrual method, you cannot deduct interest and other expenses owed to a related cash-basis person until payment is made and the amount is includible in the gross income of that person. Irs forms 2009 The relationship, for purposes of this rule, is determined as of the end of the tax year for which the interest or expense would otherwise be deductible. Irs forms 2009 If a deduction is denied under this rule, this rule will continue to apply even if your relationship with the person ceases to exist before the amount is includible in the gross income of that person. Irs forms 2009   This rule generally applies to those relationships listed in chapter 4 under Related Party Transactions . Irs forms 2009 It also applies to accruals by partnerships to partners, partners to partnerships, shareholders to S corporations, and S corporations to shareholders. Irs forms 2009   The postponement of deductions for unpaid expenses and interest under the related party rule does not apply to OID, regardless of when payment is made. Irs forms 2009 This rule also does not apply to loans with below-market interest rates or to certain payments for the use of property and services when the lender or recipient has to include payments periodically in income, even if a payment has not been made. Irs forms 2009 Prev  Up  Next   Home   More Online Publications
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The Irs Forms 2009

Irs forms 2009 5. Irs forms 2009   Figuring Your Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Identification NumberF-1 and M-1 visa holders. Irs forms 2009 J-1 visa holders. Irs forms 2009 Filing StatusResident Aliens Nonresident Aliens Reporting Your Income DeductionsResident Aliens Nonresident Aliens ExemptionsResident Aliens Nonresident Aliens Itemized DeductionsResident Aliens Nonresident Aliens Tax Credits and PaymentsResident Aliens Nonresident Aliens Bona Fide Residents of American Samoa or Puerto Rico Introduction After you have determined your alien status, the source of your income, and if and how that income is taxed in the United States, your next step is to figure your tax. Irs forms 2009 The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. Irs forms 2009 Resident aliens should get publications, forms, and instructions for U. Irs forms 2009 S. Irs forms 2009 citizens, because the information for filing returns for resident aliens is generally the same as for U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 If you are both a nonresident alien and a resident alien in the same tax year, see chapter 6 for a discussion of dual-status aliens. Irs forms 2009 Topics - This chapter discusses: Identification numbers, Filing status, Deductions, Exemptions, Tax credits and payments, and Special rules for bona fide residents of American Samoa and Puerto Rico. Irs forms 2009 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 521 Moving Expenses 526 Charitable Contributions 535 Business Expenses 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) W-7 Application for IRS Individual Taxpayer Identification Number 1040 U. Irs forms 2009 S. Irs forms 2009 Individual Income Tax Return 1040NR U. Irs forms 2009 S. Irs forms 2009 Nonresident Alien Income Tax Return 1040NR-EZ U. Irs forms 2009 S. Irs forms 2009 Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4563 Exclusion of Income for Bona Fide Residents of American Samoa 8959 Additional Medicare Tax See chapter 12 for information about getting these publications and forms. Irs forms 2009 Tax Year You must figure your income and file a tax return on the basis of an annual accounting period called a tax year. Irs forms 2009 If you have not previously established a fiscal tax year, your tax year is the calendar year. Irs forms 2009 A calendar year is 12 consecutive months ending on December 31. Irs forms 2009 If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December or a 52–53 week year) and are considered to be a U. Irs forms 2009 S. Irs forms 2009 resident for any calendar year, you will be treated as a U. Irs forms 2009 S. Irs forms 2009 resident for any part of your fiscal year that falls within that calendar year. Irs forms 2009 Identification Number A taxpayer identification number must be furnished on returns, statements, and other tax-related documents. Irs forms 2009 For an individual, this is a social security number (SSN). Irs forms 2009 If you do not have and are not eligible to get an SSN, you must apply for an individual taxpayer identification number (ITIN). Irs forms 2009 An employer identification number (EIN) is required if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan. Irs forms 2009 You must furnish a taxpayer identification number if you are: An alien who has income effectively connected with the conduct of a U. Irs forms 2009 S. Irs forms 2009 trade or business at any time during the year, An alien who has a U. Irs forms 2009 S. Irs forms 2009 office or place of business at any time during the year, A nonresident alien spouse treated as a resident, as discussed in chapter 1, or Any other alien who files a tax return, an amended return, or a refund claim (but not information returns). Irs forms 2009 Social security number (SSN). Irs forms 2009   Generally, you can get an SSN if you have been lawfully admitted to the United States for permanent residence or under other immigration categories that authorize U. Irs forms 2009 S. Irs forms 2009 employment. Irs forms 2009   To apply for this number, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration (SSA) office or call the SSA at 1-800-772-1213. Irs forms 2009 You can also download Form SS-5 from the SSA's website at www. Irs forms 2009 socialsecurity. Irs forms 2009 gov/ssnumber/ss5. Irs forms 2009 htm. Irs forms 2009 You must visit an SSA office in person and submit your Form SS-5 along with original documentation showing your age, identity, immigration status, and authority to work in the United States. Irs forms 2009 Generally, you will receive your card about 2 weeks after the SSA has all of the necessary information. Irs forms 2009 F-1 and M-1 visa holders. Irs forms 2009    If you are an F-1 or M-1 student, you must also show your Form I-20. Irs forms 2009 For more information, see SSA Publication 05-10181, International Students and Social Security Numbers, available online at www. Irs forms 2009 socialsecurity. Irs forms 2009 gov/pubs/10181. Irs forms 2009 html. Irs forms 2009 J-1 visa holders. Irs forms 2009   If you are a J-1 exchange visitor, you will also need to show your Form DS-2019. Irs forms 2009 For more information, see SSA Publication 05-10107, Foreign Workers and Social Security Numbers, available online at www. Irs forms 2009 socialsecurity. Irs forms 2009 gov/pubs/10107. Irs forms 2009 html. Irs forms 2009 Individual taxpayer identification number (ITIN). Irs forms 2009   If you do not have and are not eligible to get an SSN, you must apply for an ITIN. Irs forms 2009 For details on how to do so, see Form W-7 and its instructions. Irs forms 2009 Allow 6 to 10 weeks for the IRS to notify you of your ITIN. Irs forms 2009 If you already have an ITIN, enter it wherever an SSN is required on your tax return. Irs forms 2009   An ITIN is for tax use only. Irs forms 2009 It does not entitle you to social security benefits or change your employment or immigration status under U. Irs forms 2009 S. Irs forms 2009 law. Irs forms 2009   In addition to those aliens who are required to furnish a taxpayer identification number and are not eligible for an SSN, a Form W-7 must be filed for: Alien individuals who are claimed as dependents and are not eligible for an SSN, and Alien spouses who are claimed as exemptions and are not eligible for an SSN. Irs forms 2009 Employer identification number (EIN). Irs forms 2009   An individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes. Irs forms 2009 To apply for an EIN, file Form SS-4, Application for Employer Identification Number, with the IRS. Irs forms 2009 Filing Status The amount of your tax depends on your filing status. Irs forms 2009 Your filing status is important in determining whether you can take certain deductions and credits. Irs forms 2009 The rules for determining your filing status are different for resident aliens and nonresident aliens. Irs forms 2009 Resident Aliens Resident aliens can use the same filing statuses available to U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 See your form instructions or Publication 501 for more information on filing status. Irs forms 2009 Married filing jointly. Irs forms 2009   Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Irs forms 2009 Qualifying widow(er). Irs forms 2009   If your spouse died in 2011 or 2012, you did not remarry before the end of 2013, and you have a dependent child living with you, you may qualify to file as a qualifying widow(er) and use the joint return tax rates. Irs forms 2009 This applies only if you could have filed a joint return with your spouse for the year your spouse died. Irs forms 2009 Head of household. Irs forms 2009   You can qualify as head of household if you are unmarried or considered unmarried on the last day of the year and you pay more than half the cost of keeping up a home for you and a qualifying person. Irs forms 2009 You must be a resident alien for the entire tax year. Irs forms 2009   You are considered unmarried for this purpose if your spouse was a nonresident alien at any time during the year and you do not make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Irs forms 2009 Note. Irs forms 2009   Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit. Irs forms 2009 In that case, you will not be entitled to the credit. Irs forms 2009 See Publication 596 for more information. Irs forms 2009 Nonresident Aliens If you are a nonresident alien filing Form 1040NR, you may be able to use one of the filing statuses discussed later. Irs forms 2009 If you are filing Form 1040NR-EZ, you can only claim “Single nonresident alien” or “Married nonresident alien” as your filing status. Irs forms 2009 Married nonresident alien. Irs forms 2009   Married nonresident aliens who are not married to U. Irs forms 2009 S. Irs forms 2009 citizens or residents generally must use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when determining the tax on income effectively connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 Exceptions. Irs forms 2009   Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation Worksheet for single individuals. Irs forms 2009 However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a married resident of Canada, Mexico, South Korea, or are a married U. Irs forms 2009 S. Irs forms 2009 national. Irs forms 2009 See the instructions for Form 1040NR or Form 1040NR-EZ to see if you qualify. Irs forms 2009 U. Irs forms 2009 S. Irs forms 2009 national is defined later in this section under Qualifying widow(er) . Irs forms 2009   A nonresident alien generally cannot file as married filing jointly. Irs forms 2009 However, a nonresident alien who is married to a U. Irs forms 2009 S. Irs forms 2009 citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. Irs forms 2009 For information on these choices, see chapter 1. Irs forms 2009 If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately. Irs forms 2009 Qualifying widow(er). Irs forms 2009   You may be eligible to file as a qualifying widow(er) and use the joint return tax rates if all of the following conditions apply. Irs forms 2009 You were a resident of Canada, Mexico, or South Korea, or a U. Irs forms 2009 S. Irs forms 2009 national (defined later). Irs forms 2009 Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Irs forms 2009 You have a dependent child living with you. Irs forms 2009 See the instructions for Form 1040NR for the rules for filing as a qualifying widow(er) with a dependent child. Irs forms 2009   A U. Irs forms 2009 S. Irs forms 2009 national is an individual who, although not a U. Irs forms 2009 S. Irs forms 2009 citizen, owes his or her allegiance to the United States. Irs forms 2009 U. Irs forms 2009 S. Irs forms 2009 nationals include American Samoans and Northern Mariana Islanders who chose to become U. Irs forms 2009 S. Irs forms 2009 nationals instead of U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 Head of household. Irs forms 2009   You cannot file as head of household if you are a nonresident alien at any time during the tax year. Irs forms 2009 However, if you are married, your spouse can qualify as a head of household if: Your spouse is a resident alien or U. Irs forms 2009 S. Irs forms 2009 citizen for the entire tax year, You do not choose to be treated as a resident alien, and Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens . Irs forms 2009 Note. Irs forms 2009   Even if your spouse is considered unmarried for head of household purposes because you are a nonresident alien, your spouse may still be considered married for purposes of the earned income credit. Irs forms 2009 In that case, your spouse will not be entitled to the credit. Irs forms 2009 See Publication 596 for more information. Irs forms 2009 Estates and trusts. Irs forms 2009   A nonresident alien estate or trust using Form 1040NR must use Tax Rate Schedule W in the Form 1040NR instructions when determining the tax on income effectively connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 Special rules for aliens from certain U. Irs forms 2009 S. Irs forms 2009 possessions. Irs forms 2009   A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who is temporarily working in the United States should read Bona Fide Residents of American Samoa or Puerto Rico, at the end of this chapter, for information about special rules. Irs forms 2009 Reporting Your Income You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. Irs forms 2009 For resident aliens, this includes income from sources both within and outside the United States. Irs forms 2009 For nonresident aliens, this includes both income that is effectively connected with a trade or business in the United States (subject to graduated tax rates) and income from U. Irs forms 2009 S. Irs forms 2009 sources that is not effectively connected (subject to a flat 30% tax rate or lower tax treaty rate). Irs forms 2009 Deductions Resident and nonresident aliens can claim similar deductions on their U. Irs forms 2009 S. Irs forms 2009 tax returns. Irs forms 2009 However, nonresident aliens generally can claim only deductions related to income that is effectively connected with their U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 Resident Aliens You can claim the same deductions allowed to U. Irs forms 2009 S. Irs forms 2009 citizens if you are a resident alien for the entire tax year. Irs forms 2009 While the discussion that follows contains some of the same general rules and guidelines that apply to you, it is specifically directed toward nonresident aliens. Irs forms 2009 You should get Form 1040 and instructions for more information on how to claim your allowable deductions. Irs forms 2009 Nonresident Aliens You can claim deductions to figure your effectively connected taxable income. Irs forms 2009 You generally cannot claim deductions related to income that is not connected with your U. Irs forms 2009 S. Irs forms 2009 business activities. Irs forms 2009 Except for personal exemptions, and certain itemized deductions, discussed later, you can claim deductions only to the extent they are connected with your effectively connected income. Irs forms 2009 Ordinary and necessary business expenses. Irs forms 2009   You can deduct all ordinary and necessary expenses in the operation of your U. Irs forms 2009 S. Irs forms 2009 trade or business to the extent they relate to income effectively connected with that trade or business. Irs forms 2009 The deduction for travel expenses while in the United States is discussed under Itemized Deductions, later. Irs forms 2009 For information about other business expenses, see Publication 535. Irs forms 2009 Losses. Irs forms 2009   You can deduct losses resulting from transactions that you entered into for profit and that you were not reimbursed for by insurance, etc. Irs forms 2009 to the extent that they relate to income that is effectively connected with a trade or business in the United States. Irs forms 2009 Educator expenses. Irs forms 2009   If you were an eligible educator in 2013, you can deduct as an adjustment to income up to $250 in unreimbursed qualified expenses you paid or incurred during 2013 for books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment, and other equipment and materials used in the classroom. Irs forms 2009 For more information, see your tax form instructions. Irs forms 2009 Individual retirement arrangement (IRA). Irs forms 2009   If you made contributions to a traditional IRA for 2013, you may be able to take an IRA deduction. Irs forms 2009 But you must have taxable compensation effectively connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business to do so. Irs forms 2009 A Form 5498 should be sent to you by May 31, 2014, that shows all contributions to your traditional IRA for 2013. Irs forms 2009 If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc. Irs forms 2009 ) at work or through self-employment, your IRA deduction may be reduced or eliminated. Irs forms 2009 But you can still make contributions to a traditional IRA even if you cannot deduct them. Irs forms 2009 If you made nondeductible contributions to a traditional IRA for 2013, you must report them on Form 8606, Nondeductible IRAs. Irs forms 2009   For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Irs forms 2009 Moving expenses. Irs forms 2009   If you are a nonresident alien temporarily in the United States earning taxable income for performing personal services, you can deduct moving expenses to the United States if you meet both of the following tests. Irs forms 2009 You are a full-time employee for at least 39 weeks during the 12 months right after you move, or if you are self-employed, you work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months right after you move. Irs forms 2009 Your new job location is at least 50 miles farther (by the shortest commonly traveled route) from your former home than your former job location was. Irs forms 2009 If you had no former job location, the new job location must be at least 50 miles from your former home. Irs forms 2009   You cannot deduct the moving expense you have when returning to your home abroad or moving to a foreign job site. Irs forms 2009   Figure your deductible moving expenses to the United States on Form 3903, and deduct them on line 26 of Form 1040NR. Irs forms 2009   For more information on the moving expense deduction, see Publication 521. Irs forms 2009 Reimbursements. Irs forms 2009   If your employer reimbursed you for allowable moving expenses under an accountable plan, your employer should have excluded these reimbursements from your income. Irs forms 2009 You can only deduct allowable moving expenses that were not reimbursed by your employer or that were reimbursed but the reimbursement was included in your income. Irs forms 2009 For more information, see Publication 521. Irs forms 2009 Moving expense or travel expense. Irs forms 2009   If you deduct moving expenses to the United States, you cannot also deduct travel expenses (discussed later under Itemized Deductions) while temporarily away from your tax home in a foreign country. Irs forms 2009 Moving expenses are based on a change in your principal place of business while travel expenses are based on your temporary absence from your principal place of business. Irs forms 2009 Self-employed SEP, SIMPLE, and qualified retirement plans. Irs forms 2009   If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. Irs forms 2009 To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009   Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. Irs forms 2009 Penalty on early withdrawal of savings. Irs forms 2009   You must include in income all effectively connected interest income you receive or that is credited to your account during the year. Irs forms 2009 Do not reduce it by any penalty you must pay on an early withdrawal from a time savings account. Irs forms 2009 However, if the interest income is effectively connected with your U. Irs forms 2009 S. Irs forms 2009 trade or business during the year, you can deduct on line 30 of Form 1040NR the amount of the early withdrawal penalty that the banking institution charged. Irs forms 2009 Student loan interest expense. Irs forms 2009   If you paid interest on a student loan in 2013, you may be able to deduct up to $2,500 of the interest you paid. Irs forms 2009 Generally, you can claim the deduction if all the following requirements are met. Irs forms 2009 Your filing status is any filing status except married filing separately. Irs forms 2009 Your modified adjusted gross income is less than $75,000. Irs forms 2009 No one else is claiming an exemption for you on his or her 2013 tax return. Irs forms 2009 You paid interest on a loan taken out only to pay tuition and other qualified higher education expenses for yourself, your spouse, someone who was your dependent when the loan was taken out, or someone you could have claimed as a dependent for the year the loan was taken out except that: The person filed a joint return, The person had gross income that was equal to or more than the exemption amount for that year ($3,900 for 2013), or You could be claimed as a dependent on someone else's return. Irs forms 2009 The loan is not from a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. Irs forms 2009 The education expenses were paid or incurred within a reasonable period of time before or after the loan was taken out. Irs forms 2009 The person for whom the expenses were paid or incurred was an eligible student. Irs forms 2009 Use the worksheet in the Form 1040NR or Form 1040NR-EZ instructions to figure the deduction. Irs forms 2009 For more information, see Publication 970, Tax Benefits for Education. Irs forms 2009 Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irs forms 2009 S. Irs forms 2009 tax return. Irs forms 2009 Resident Aliens You can claim personal exemptions and exemptions for dependents according to the dependency rules for U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 You can claim an exemption for your spouse on a separate return if your spouse had no gross income for U. Irs forms 2009 S. Irs forms 2009 tax purposes and was not the dependent of another taxpayer. Irs forms 2009 You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States. Irs forms 2009 You can claim an exemption for each person who qualifies as a dependent according to the rules for U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 The dependent must be a citizen or national (defined earlier) of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begins. Irs forms 2009 Get Publication 501 for more information. Irs forms 2009 Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Irs forms 2009 See Identification Number, earlier. Irs forms 2009 Nonresident Aliens Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption ($3,900 for 2013). Irs forms 2009 You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following discussions. Irs forms 2009 Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Irs forms 2009 See Identification Number, earlier. Irs forms 2009 Residents of Mexico or Canada or U. Irs forms 2009 S. Irs forms 2009 nationals. Irs forms 2009   If you are a resident of Mexico or Canada or a national of the United States (defined earlier), you can also claim a personal exemption for your spouse if your spouse had no gross income for U. Irs forms 2009 S. Irs forms 2009 tax purposes and cannot be claimed as the dependent on another U. Irs forms 2009 S. Irs forms 2009 taxpayer's return. Irs forms 2009 In addition, you can claim exemptions for your dependents who meet certain tests. Irs forms 2009 Residents of Mexico, Canada, or nationals of the United States must use the same rules as U. Irs forms 2009 S. Irs forms 2009 citizens to determine who is a dependent and for which dependents exemptions can be claimed. Irs forms 2009 See Publication 501 for these rules. Irs forms 2009 For purposes of these rules, dependents who are U. Irs forms 2009 S. Irs forms 2009 nationals meet the citizenship test discussed in Publication 501. Irs forms 2009 Residents of South Korea. Irs forms 2009   Nonresident aliens who are residents of South Korea may be able to claim exemptions for a spouse and children. Irs forms 2009 The income tax treaty with South Korea imposes two additional requirements on South Korean residents: The spouse and all children claimed must live with the alien in the United States at some time during the tax year, and The additional deduction for the exemptions must be prorated based on the ratio of the alien's U. Irs forms 2009 S. Irs forms 2009 source gross income effectively connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business for the tax year to the alien's entire income from all sources during the tax year. Irs forms 2009 Example. Irs forms 2009 Mr. Irs forms 2009 Park, a nonresident alien who is a resident of South Korea, lives temporarily in the United States with his wife and two children. Irs forms 2009 During the tax year he receives U. Irs forms 2009 S. Irs forms 2009 compensation of $18,000. Irs forms 2009 He also receives $6,000 of income from sources outside the United States that is not effectively connected with his U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 Thus, his total income for the year is $24,000. Irs forms 2009 Mr. Irs forms 2009 Park meets all requirements for claiming exemptions for his spouse and two children. Irs forms 2009 The additional deduction for 2013 is $8,775 figured as follows: $18,000 $24,000 × $11,700* = $8,775               *3 × $3,900 = $11,700   Students and business apprentices from India. Irs forms 2009   Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty may be able to claim exemptions for their spouse and dependents. Irs forms 2009   You can claim an exemption for your spouse if he or she had no gross income during the year and cannot be claimed as a dependent on another U. Irs forms 2009 S. Irs forms 2009 taxpayer's return. Irs forms 2009   You can claim exemptions for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 See Publication 501 for these rules. Irs forms 2009   List your spouse and dependents on line 7c of Form 1040NR. Irs forms 2009 Enter the total on the appropriate line to the right of line 7c. Irs forms 2009 Itemized Deductions Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irs forms 2009 However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 Resident Aliens You can claim the same itemized deductions as U. Irs forms 2009 S. Irs forms 2009 citizens, using Schedule A of Form 1040. Irs forms 2009 These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. Irs forms 2009 If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. Irs forms 2009 For further information, see Form 1040 and instructions. Irs forms 2009 Nonresident Aliens You can deduct certain itemized deductions if you receive income effectively connected with your U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 These deductions include state and local income taxes, charitable contributions to U. Irs forms 2009 S. Irs forms 2009 organizations, casualty and theft losses, and miscellaneous deductions. Irs forms 2009 Use Schedule A of Form 1040NR to claim itemized deductions. Irs forms 2009 If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. Irs forms 2009 If you are claiming any other itemized deduction, you must file Form 1040NR. Irs forms 2009 Standard deduction. Irs forms 2009   Nonresident aliens cannot claim the standard deduction. Irs forms 2009 However, see Students and business apprentices from India , next. Irs forms 2009 Students and business apprentices from India. Irs forms 2009   A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. Irs forms 2009 You can claim the standard deduction provided you do not claim itemized deductions. Irs forms 2009   Use Worksheet 5-1 to figure your standard deduction. Irs forms 2009 If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Irs forms 2009 State and local income taxes. Irs forms 2009   You can deduct state and local income taxes you paid on income that is effectively connected with a trade or business in the United States. Irs forms 2009 If you received a refund or rebate in 2013 of taxes you paid in an earlier year, do not reduce your deduction by that amount. Irs forms 2009 Instead, you must include the refund or rebate in income if you deducted the taxes in the earlier year and the deduction reduced your tax. Irs forms 2009 See Recoveries in Publication 525 for details on how to figure the amount to include in income. Irs forms 2009 Charitable contributions. Irs forms 2009   You can deduct your charitable contributions or gifts to qualified organizations subject to certain limits. Irs forms 2009 Qualified organizations include organizations that are religious, charitable, educational, scientific, or literary in nature, or that work to prevent cruelty to children or animals. Irs forms 2009 Certain organizations that promote national or international amateur sports competition are also qualified organizations. Irs forms 2009 Foreign organizations. Irs forms 2009   Contributions made directly to a foreign organization are not deductible. Irs forms 2009 However, you can deduct contributions to a U. Irs forms 2009 S. Irs forms 2009 organization that transfers funds to a charitable foreign organization if the U. Irs forms 2009 S. Irs forms 2009 organization controls the use of the funds or if the foreign organization is only an administrative arm of the U. Irs forms 2009 S. Irs forms 2009 organization. Irs forms 2009   For more information about organizations that qualify to receive charitable contributions, see Publication 526, Charitable Contributions. Irs forms 2009 Worksheet 5-1. Irs forms 2009 2013 Standard Deduction Worksheet for Students and Business Apprentices From India Caution. Irs forms 2009 If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. Irs forms 2009 You cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Irs forms 2009 1 Enter the amount shown below for your filing status. Irs forms 2009           Single or married filing separately—$6,100 Qualifying widow(er)—$12,200 1. Irs forms 2009           2 Can you be claimed as a dependent on someone else's U. Irs forms 2009 S. Irs forms 2009 income tax return?  No. Irs forms 2009 Enter the amount from line 1 on line 4. Irs forms 2009 Skip line 3 and go to line 5. Irs forms 2009   Yes. Irs forms 2009 Go to line 3. Irs forms 2009         3 Is your earned income* more than $650?           Yes. Irs forms 2009 Add $350 to your earned income. Irs forms 2009 Enter the total. Irs forms 2009           No. Irs forms 2009 Enter $1,000 3. Irs forms 2009       4 Enter the smaller of line 1 or line 3 4. Irs forms 2009   5 If born before January 2, 1949, OR blind, enter $1,200 ($1,500 if single). Irs forms 2009 If born before January 2, 1949, AND blind, enter $2,400 ($3,000 if single). Irs forms 2009 Otherwise, enter -0- 5. Irs forms 2009   6 Add lines 4 and 5. Irs forms 2009 Enter the total here and on Form 1040NR, line 38 (or Form 1040NR-EZ, line 11). Irs forms 2009 Print “Standard Deduction Allowed Under U. Irs forms 2009 S. Irs forms 2009 –India Income Tax Treaty” in the space to the left of these lines. Irs forms 2009 This is your standard deduction for 2013. Irs forms 2009 6. Irs forms 2009   *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Irs forms 2009 It also includes any amount received as a scholarship that you must include in your income. Irs forms 2009 Generally, your earned income is the total of the amount(s) you reported on Form 1040NR, lines 8,12,13, and 19, minus amounts on lines 27 and 31 (or Form 1040NR-EZ, lines 3 and 5, minus any amount on line 8). Irs forms 2009 Contributions from which you benefit. Irs forms 2009   If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Irs forms 2009   If you pay more than the fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. Irs forms 2009 For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Irs forms 2009 Cash contributions. Irs forms 2009   You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written record from the charity. Irs forms 2009 The written record must include the name of the charity, date of the contribution, and the amount of the contribution. Irs forms 2009   You may deduct a cash contribution of $250 or more only if you have a written statement from the charitable organization showing: The amount of any money contributed, Whether the organization gave you any goods or services in return for your contribution, and A description and estimate of the value of any goods or services described in (2). Irs forms 2009 If you received only intangible religious benefits, the organization must state this, but it does not have to describe or value the benefit. Irs forms 2009 Noncash contributions. Irs forms 2009   For contributions not made in cash, the records you must keep depend on the amount of your deduction. Irs forms 2009 See Publication 526 for details. Irs forms 2009 For example, if you make a noncash contribution and the amount of your deduction is more than $500, you must complete and attach to your tax return Form 8283, Noncash Charitable Contributions. Irs forms 2009 If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. Irs forms 2009 If your total deduction is over $5,000, you also may have to get appraisals of the values of the property. Irs forms 2009 If the donated property is valued at more than $5,000, you must obtain a qualified appraisal. Irs forms 2009 You generally must attach to your tax return an appraisal of any property if your deduction for the property is more than $500,000. Irs forms 2009 See Form 8283 and its instructions for details. Irs forms 2009 Contributions of appreciated property. Irs forms 2009   If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Irs forms 2009 However, if you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Irs forms 2009 Your basis in the property is generally what you paid for it. Irs forms 2009 If you need more information about basis, get Publication 551, Basis of Assets. Irs forms 2009   Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Irs forms 2009 For information about these rules, see Publication 526. Irs forms 2009 Limit. Irs forms 2009   The amount you can deduct in a tax year is limited in the same way it is for a citizen or resident of the United States. Irs forms 2009 For a discussion of limits on charitable contributions and other information, get Publication 526. Irs forms 2009 Casualty and theft losses. Irs forms 2009   You can deduct your loss from fire, storm, shipwreck, or other casualty, or theft of property even though your property is not connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 The property can be personal use property or income-producing property not connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business. Irs forms 2009 The property must be located in the United States at the time of the casualty or theft. Irs forms 2009 You can deduct theft losses only in the year in which you discover the loss. Irs forms 2009   The amount of the loss is the fair market value of the property immediately before the casualty or theft less its fair market value immediately after the casualty or theft (but not more than its cost or adjusted basis) less any insurance or other reimbursement. Irs forms 2009 The fair market value of property immediately after a theft is considered zero, because you no longer have the property. Irs forms 2009   If your property is covered by insurance, you should file a timely insurance claim for reimbursement. Irs forms 2009 If you do not, you cannot deduct this loss as a casualty or theft loss. Irs forms 2009   Figure your deductible casualty and theft losses on Form 4684, Casualties and Thefts. Irs forms 2009 Losses from personal use property. Irs forms 2009    You cannot deduct the first $100 of each casualty or theft loss to property held for personal use. Irs forms 2009 You can deduct only the total of these losses for the year (reduced by the $100 limit) that is more than 10% of your adjusted gross income (line 37, Form 1040NR) for the year. Irs forms 2009 Losses from income-producing property. Irs forms 2009   These losses are not subject to the limitations that apply to personal use property. Irs forms 2009 Use Section B of Form 4684 to figure your deduction for these losses. Irs forms 2009 Job expenses and other miscellaneous deductions. Irs forms 2009   You can deduct job expenses, such as allowable unreimbursed travel expenses (discussed next), and other miscellaneous deductions. Irs forms 2009 Generally, the allowable deductions must be related to effectively connected income. Irs forms 2009 Deductible expenses include: Union dues, Safety equipment and small tools needed for your job, Dues to professional organizations, Subscriptions to professional journals, Tax return preparation fees, and Casualty and theft losses of property used in performing services as an employee (employee property). Irs forms 2009   Most miscellaneous itemized deductions are deductible only if they are more than 2% of your adjusted gross income (line 37, Form 1040NR). Irs forms 2009 For more information on miscellaneous deductions, see the instructions for Form 1040NR. Irs forms 2009 Travel expenses. Irs forms 2009   You may be able to deduct your ordinary and necessary travel expenses while you are temporarily performing personal services in the United States. Irs forms 2009 Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Irs forms 2009 You must be able to show you were present in the United States on an activity that required your temporary absence from your regular place of work. Irs forms 2009   For example, if you have established a “tax home” through regular employment in a foreign country, and intend to return to similar employment in the same country at the end of your temporary stay in the United States, you can deduct reasonable travel expenses you paid. Irs forms 2009 You cannot deduct travel expenses for other members of your family or party. Irs forms 2009 Deductible travel expenses. Irs forms 2009   If you qualify, you can deduct your expenses for: Transportation—airfare, local transportation, including train, bus, etc. Irs forms 2009 , Lodging—rent paid, utilities (do not include telephone), hotel or motel room expenses, and Meal expenses—actual expenses allowed if you keep records of the amounts, or, if you do not wish to keep detailed records, you are generally allowed a standard meal allowance amount depending on the date and area of your travel. Irs forms 2009 You generally can deduct only 50% of unreimbursed meal expenses. Irs forms 2009 The standard meal allowance rates for high-cost areas are available at www. Irs forms 2009 gsa. Irs forms 2009 gov/perdiem. Irs forms 2009 The rates for other areas are in Publication 463. Irs forms 2009   Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 7 of Schedule A (Form 1040NR). Irs forms 2009 Expenses allocable to U. Irs forms 2009 S. Irs forms 2009 tax-exempt income. Irs forms 2009   You cannot deduct an expense, or part of an expense, that is allocable to U. Irs forms 2009 S. Irs forms 2009 tax-exempt income, including income exempt by tax treaty. Irs forms 2009 Example. Irs forms 2009 Irina Oak, a citizen of Poland, resided in the United States for part of the year to acquire business experience from a U. Irs forms 2009 S. Irs forms 2009 company. Irs forms 2009 During her stay in the United States, she received a salary of $8,000 from her Polish employer. Irs forms 2009 She received no other U. Irs forms 2009 S. Irs forms 2009 source income. Irs forms 2009 She spent $3,000 on travel expenses, of which $1,000 were for meals. Irs forms 2009 None of these expenses were reimbursed. Irs forms 2009 Under the tax treaty with Poland, $5,000 of her salary is exempt from U. Irs forms 2009 S. Irs forms 2009 income tax. Irs forms 2009 In filling out Form 2106-EZ, she must reduce her deductible meal expenses by half ($500). Irs forms 2009 She must reduce the remaining $2,500 of travel expenses by 62. Irs forms 2009 5% ($1,563) because 62. Irs forms 2009 5% ($5,000 ÷ $8,000) of her salary is exempt from tax. Irs forms 2009 She enters the remaining total of $937 on line 7 of Schedule A (Form 1040NR). Irs forms 2009 She completes the remaining lines according to the instructions for Schedule A. Irs forms 2009 More information. Irs forms 2009   For more information about deductible expenses, reimbursements, and recordkeeping, get Publication 463. Irs forms 2009 Tax Credits and Payments This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and payments for nonresident aliens. Irs forms 2009 Resident Aliens Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U. Irs forms 2009 S. Irs forms 2009 citizens. Irs forms 2009 The following items are some of the credits you may be able to claim. Irs forms 2009 Foreign tax credit. Irs forms 2009   You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign country on foreign source income. Irs forms 2009 You cannot claim a credit for taxes paid or accrued on excluded foreign earned income. Irs forms 2009 To claim a credit for income taxes paid or accrued to a foreign country, you generally will file Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), with your Form 1040. Irs forms 2009   For more information, get Publication 514, Foreign Tax Credit for Individuals. Irs forms 2009 Child and dependent care credit. Irs forms 2009   You may be able to take this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Irs forms 2009 Generally, you must be able to claim an exemption for your dependent. Irs forms 2009   For more information, get Publication 503, Child and Dependent Care Expenses, and Form 2441, Child and Dependent Care Expenses. Irs forms 2009 Credit for the elderly or the disabled. Irs forms 2009   You may qualify for this credit if you are 65 or older or if you retired on permanent and total disability. Irs forms 2009 For more information on this credit, get Publication 524, Credit for the Elderly or the Disabled, and Schedule R (Form 1040A or 1040). Irs forms 2009 Education credits. Irs forms 2009   You may qualify for these credits if you paid qualified education expenses for yourself, your spouse, or your dependent. Irs forms 2009 There are two education credits: the American Opportunity Credit and the lifetime learning credit. Irs forms 2009 You cannot claim these credits if you are married filing separately. Irs forms 2009 Use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to figure the credit. Irs forms 2009 For more information, see Publication 970. Irs forms 2009 Retirement savings contributions credit. Irs forms 2009   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Irs forms 2009 You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than: $59,000, if your filing status is married filing jointly, $44,250, if your filing status is head of household, or $29,500, if your filing status is single, married filing separately, or qualifying widow(er). Irs forms 2009 Use Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the credit. Irs forms 2009 For more information, see Publication 590. Irs forms 2009 Child tax credit. Irs forms 2009   You may be able to take this credit if you have a qualifying child. Irs forms 2009   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Irs forms 2009 Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Irs forms 2009 Is a U. Irs forms 2009 S. Irs forms 2009 citizen, a U. Irs forms 2009 S. Irs forms 2009 national, or a resident alien. Irs forms 2009 Did not provide over half of his or her own support for 2013. Irs forms 2009 Lived with you more than half of 2013. Irs forms 2009 Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Irs forms 2009 Is claimed as a dependent on your return. Irs forms 2009 An adopted child is always treated as your own child. Irs forms 2009 An adopted child includes a child lawfully placed with you for legal adoption. Irs forms 2009   See your form instructions for additional details. Irs forms 2009 Adoption credit. Irs forms 2009   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Irs forms 2009 This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Irs forms 2009 To claim the adoption credit, file Form 8839, Qualified Adoption Expenses, with your Form 1040. Irs forms 2009 Earned income credit. Irs forms 2009   You may qualify for an earned income credit of up to $3,250 if a child lived with you in the United States and your earned income and adjusted gross income were each less than $37,870 ($43,210 if married filing jointly). Irs forms 2009 If two children lived with you in the United States and your earned income and adjusted gross income were each less than $43,038 ($48,378 if married filing jointly), your credit could be as much as $5,372. Irs forms 2009 If three or more children lived with you in the United States and your earned income and adjusted gross income were each less than $46,227 ($51,567 if married filing jointly), your credit could be as much as $6,044. Irs forms 2009 If you do not have a qualifying child and your earned income and adjusted gross income were each less than $14,340 ($19,680 if married filing jointly), your credit could be as much as $487. Irs forms 2009 You cannot claim the earned income credit if your filing status is married filing separately. Irs forms 2009    You and your spouse (if filing a joint return) and any qualifying child must have valid SSNs to claim this credit. Irs forms 2009 You cannot claim the credit using an ITIN. Irs forms 2009 If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Irs forms 2009 An example of a federally funded benefit is Medicaid. Irs forms 2009 If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Irs forms 2009 S. Irs forms 2009 citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Irs forms 2009 Other information. Irs forms 2009   There are other eligibility rules that are not discussed here. Irs forms 2009 For more information, get Publication 596, Earned Income Credit. Irs forms 2009 Nonresident Aliens You can claim some of the same credits that resident aliens can claim. Irs forms 2009 You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income. Irs forms 2009 Credits Credits are allowed only if you receive effectively connected income. Irs forms 2009 You may be able to claim some of the following credits. Irs forms 2009 Foreign tax credit. Irs forms 2009   If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U. Irs forms 2009 S. Irs forms 2009 possession on that income. Irs forms 2009   If you do not have foreign source income effectively connected with a U. Irs forms 2009 S. Irs forms 2009 trade or business, you cannot claim credits against your U. Irs forms 2009 S. Irs forms 2009 tax for taxes paid or accrued to a foreign country or U. Irs forms 2009 S. Irs forms 2009 possession. Irs forms 2009   You cannot take any credit for taxes imposed by a foreign country or U. Irs forms 2009 S. Irs forms 2009 possession on your U. Irs forms 2009 S. Irs forms 2009 source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. Irs forms 2009   If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. Irs forms 2009 See Publication 514 for more information. Irs forms 2009 Child and dependent care credit. Irs forms 2009   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Irs forms 2009 Generally, you must be able to claim an exemption for your dependent. Irs forms 2009   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Irs forms 2009 S. Irs forms 2009 citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). Irs forms 2009   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. Irs forms 2009 Earned income generally means wages, salaries, and professional fees for personal services performed. Irs forms 2009   For more information, get Publication 503. Irs forms 2009 Education credits. Irs forms 2009   If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irs forms 2009 However, if you are married and choose to file a joint return with a U. Irs forms 2009 S. Irs forms 2009 citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. Irs forms 2009 Retirement savings contributions credit. Irs forms 2009   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Irs forms 2009 You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. Irs forms 2009 Use Form 8880 to figure the credit. Irs forms 2009 For more information, see Publication 590. Irs forms 2009 Child tax credit. Irs forms 2009   You may be able to take this credit if you have a qualifying child. Irs forms 2009   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Irs forms 2009 Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Irs forms 2009 Is a U. Irs forms 2009 S. Irs forms 2009 citizen, a U. Irs forms 2009 S. Irs forms 2009 national, or a resident alien. Irs forms 2009 Did not provide over half of his or her own support for 2013. Irs forms 2009 Lived with you more than half of 2013. Irs forms 2009 Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Irs forms 2009 Is claimed as a dependent on your return. Irs forms 2009 An adopted child is always treated as your own child. Irs forms 2009 An adopted child includes a child lawfully placed with you for legal adoption. Irs forms 2009   See your form instructions for additional details. Irs forms 2009 Adoption credit. Irs forms 2009   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Irs forms 2009 This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Irs forms 2009 To claim the adoption credit, file Form 8839 with your Form 1040NR. Irs forms 2009   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Irs forms 2009 S. Irs forms 2009 citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). Irs forms 2009 Credit for prior year minimum tax. Irs forms 2009   If you paid alternative minimum tax in a prior year, get Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, to see if you qualify for this credit. Irs forms 2009 Earned income credit. Irs forms 2009   If you are a nonresident alien for any part of the tax year, you generally cannot get the earned income credit. Irs forms 2009 However, if you are married and choose to file a joint return with a U. Irs forms 2009 S. Irs forms 2009 citizen or resident spouse as discussed in chapter 1, you may be eligible for the credit. Irs forms 2009    You, your spouse, and any qualifying child must have valid SSNs to claim this credit. Irs forms 2009 You cannot claim the credit using an ITIN. Irs forms 2009 If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Irs forms 2009 An example of a federally funded benefit is Medicaid. Irs forms 2009 If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Irs forms 2009 S. Irs forms 2009 citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Irs forms 2009   See Publication 596 for more information on the credit. Irs forms 2009 Tax Withheld You can claim the tax withheld during the year as a payment against your U. Irs forms 2009 S. Irs forms 2009 tax. Irs forms 2009 You claim it on line 61 of Form 1040NR or on line 18 of Form 1040NR-EZ. Irs forms 2009 The tax withheld reduces any tax you owe with Form 1040NR or Form 1040NR-EZ. Irs forms 2009 Withholding from wages. Irs forms 2009   Any federal income tax withheld from your wages during the tax year while you were a nonresident alien is allowed as a payment against your U. Irs forms 2009 S. Irs forms 2009 income tax liability for the same year. Irs forms 2009 You can claim the income tax withheld whether or not you were engaged in a trade or business in the United States during the year, and whether or not the wages (or any other income) were connected with a trade or business in the United States. Irs forms 2009 Excess social security tax withheld. Irs forms 2009   If you have two or more employers, you may be able to claim a credit against your U. Irs forms 2009 S. Irs forms 2009 income tax liability for social security tax withheld in excess of the maximum required. Irs forms 2009 See Social Security and Medicare Taxes in chapter 8 for more information. Irs forms 2009 Additional Medicare Tax. Irs forms 2009   Your employer is responsible for withholding the 0. Irs forms 2009 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. Irs forms 2009 If you do not owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959. Irs forms 2009 Tax paid on undistributed long-term capital gains. Irs forms 2009   If you are a shareholder in a mutual fund (or other regulated investment company) or real estate investment trust, you can claim a credit for your share of any taxes paid by the company on its undistributed long-term capital gains. Irs forms 2009 You will receive information on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which you must attach to your return. Irs forms 2009 Tax withheld at the source. Irs forms 2009   You can claim as a payment any tax withheld at the source on investment and other fixed or determinable annual or periodic income paid to you. Irs forms 2009 Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income. Irs forms 2009 Wage or salary payments can be fixed or determinable income to you, but usually are subject to withholding as discussed above. Irs forms 2009 Taxes on fixed or determinable income are withheld at a 30% rate or at a lower treaty rate. Irs forms 2009 Tax withheld on partnership income. Irs forms 2009   If you are a foreign partner in a partnership, the partnership will withhold tax on your share of effectively connected taxable income from the partnership. Irs forms 2009 The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Irs forms 2009 A partnership that is publicly traded may withhold on your actual distributions of effectively connected income. Irs forms 2009 In this case, the partnership will give you a statement on Form 1042-S. Irs forms 2009 Claim the tax withheld as a payment on line 61b or 61d of Form 1040NR, as appropriate. Irs forms 2009 Claiming tax withheld on your return. Irs forms 2009   When you fill out your tax return, take extra care to enter the correct amount of any tax withheld shown on your information documents. Irs forms 2009 The following table lists some of the more common information documents and shows where to find the amount of tax withheld. Irs forms 2009 Form number Location  of tax  withheld RRB-1042S Box 12 SSA-1042S Box 9 W-2 Box 2 W-2c Box 2 1042-S Box 9 8805 Line 10 8288-A Box 2 Bona Fide Residents of American Samoa or Puerto Rico If you are a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you generally are taxed the same as resident aliens. Irs forms 2009 You should file Form 1040 and report all income from sources both in and outside the United States. Irs forms 2009 However, you can exclude the income discussed in the following paragraphs. Irs forms 2009 For tax purposes other than reporting income, however, you will be treated as a nonresident alien. Irs forms 2009 For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Irs forms 2009 There are also limits on what deductions and credits are allowed. Irs forms 2009 See Nonresident Aliens under Deductions , Itemized Deductions , and Tax Credits and Payments in this chapter. Irs forms 2009 Residents of Puerto Rico. Irs forms 2009   If you are a bona fide resident of Puerto Rico for the entire year, you can exclude from gross income all income from sources in Puerto Rico (other than amounts for services performed as an employee of the United States or any of its agencies). Irs forms 2009   If you report income on a calendar year basis and you do not have wages subject to withholding, file your return and pay your tax by June 15. Irs forms 2009 You must also make your first payment of estimated tax by June 15. Irs forms 2009 You cannot file a joint income tax return or make joint payments of estimated tax. Irs forms 2009 However, if you are married to a U. Irs forms 2009 S. Irs forms 2009 citizen or resident, see Nonresident Spouse Treated as a Resident in chapter 1. Irs forms 2009   If you earn wages subject to withholding, your U. Irs forms 2009 S. Irs forms 2009 income tax return is due by April 15. Irs forms 2009 Your first payment of estimated tax is also due by April 15. Irs forms 2009 For information on withholding and estimated tax, see chapter 8 . Irs forms 2009 Residents of American Samoa. Irs forms 2009   If you are a bona fide resident of American Samoa for the entire year, you can exclude from gross income all income from sources in American Samoa (other than amounts for services performed as an employee of the U. Irs forms 2009 S. Irs forms 2009 government or any of its agencies). Irs forms 2009 An employee of the American Samoan government is not considered an employee of the U. Irs forms 2009 S. Irs forms 2009 government or any of its agencies for purposes of the exclusion. Irs forms 2009 For more information about this exclusion, get Form 4563 and Publication 570, Tax Guide for Individuals With Income From U. Irs forms 2009 S. Irs forms 2009 Possessions. Irs forms 2009 Prev  Up  Next   Home   More Online Publications