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Irstax 5. Irstax   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. Irstax Making the election. Irstax Form 3115. Irstax Income TaxesAccrual of contested income taxes. Irstax Employment Taxes Other TaxesAdditional Medicare Tax. Irstax What's New Additional Medicare Tax. Irstax  Beginning in 2013, you must withhold a 0. Irstax 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irstax Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. Irstax See Employment Taxes , and Self-employment tax , later. Irstax Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. Irstax You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. Irstax Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. Irstax When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. Irstax This applies whether you use the cash method or an accrual method of accounting. Irstax Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. Irstax You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . Irstax Limit on accrual of taxes. Irstax   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. Irstax However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. Irstax Example. Irstax Your state imposes a tax on personal property used in a trade or business conducted in the state. Irstax This tax is assessed and becomes a lien as of July 1 (accrual date). Irstax In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. Irstax Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. Irstax You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. Irstax Uniform capitalization rules. Irstax   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. Irstax They also apply to certain taxpayers who acquire property for resale. Irstax Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. Irstax For more information, see chapter 1. Irstax Carrying charges. Irstax   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Irstax You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Irstax For more information, see chapter 7. Irstax Refunds of taxes. Irstax   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. Irstax For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. Irstax    You must include in income any interest you receive on tax refunds. Irstax Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Irstax The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Irstax Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Irstax See Taxes for local benefits , later. Irstax If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. Irstax However, you can elect to ratably accrue the taxes during the year. Irstax See Electing to ratably accrue , later. Irstax Taxes for local benefits. Irstax   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. Irstax These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. Irstax You should increase the basis of your property by the amount of the assessment. Irstax   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. Irstax If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. Irstax Example. Irstax To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. Irstax The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. Irstax The city is paying the principal and interest with the annual payments made by the property owners. Irstax The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. Irstax The part of the payments used to pay the interest charges on the bonds is deductible as taxes. Irstax Charges for services. Irstax   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. Irstax Purchase or sale of real estate. Irstax   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. Irstax   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. Irstax Treat the seller as paying the taxes up to but not including the date of sale. Irstax Treat the buyer as paying the taxes beginning with the date of sale. Irstax You can usually find this information on the settlement statement you received at closing. Irstax   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. Irstax Example. Irstax Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. Irstax He has not elected to ratably accrue property taxes. Irstax November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. Irstax He sold the property on June 30, 2013. Irstax Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. Irstax He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. Irstax Electing to ratably accrue. Irstax   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. Irstax Example. Irstax Juan Sanchez is a calendar year taxpayer who uses an accrual method. Irstax His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. Irstax July 1 is the assessment and lien date. Irstax If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. Irstax Separate elections. Irstax   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. Irstax Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. Irstax See Form 3115 , later. Irstax Making the election. Irstax   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. Irstax The statement should show all the following items. Irstax The trades or businesses to which the election applies and the accounting method or methods used. Irstax The period to which the taxes relate. Irstax The computation of the real estate tax deduction for that first year. Irstax   Generally, you must file your return by the due date (including extensions). Irstax However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Irstax Attach the statement to the amended return and write “Filed pursuant to section 301. Irstax 9100-2” on the statement. Irstax File the amended return at the same address where you filed the original return. Irstax Form 3115. Irstax    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. Irstax For more information, including applicable time frames for filing, see the Instructions for Form 3115. Irstax Note. Irstax If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. Irstax R. Irstax B. Irstax 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. Irstax R. Irstax B. Irstax 689, and Revenue Procedure 2012-20, 2012-14 I. Irstax R. Irstax B. Irstax 700, or any successor. Irstax Revenue Procedure 2011-14 is available at  www. Irstax irs. Irstax gov/irb/2011-04IRB/ar08. Irstax html. Irstax Income Taxes This section discusses federal, state, local, and foreign income taxes. Irstax Federal income taxes. Irstax   You cannot deduct federal income taxes. Irstax State and local income taxes. Irstax   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. Irstax An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Irstax   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. Irstax Accrual of contested income taxes. Irstax   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. Irstax   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. Irstax You cannot deduct them in the year in which the liability is finally determined. Irstax    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. Irstax Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. Irstax   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. Irstax You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. Irstax For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. Irstax Foreign income taxes. Irstax   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Irstax S. Irstax possession. Irstax However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Irstax S. Irstax tax under the foreign earned income exclusion or the foreign housing exclusion. Irstax For information on these exclusions, see Publication 54, Tax Guide for U. Irstax S. Irstax Citizens and Resident Aliens Abroad. Irstax For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. Irstax Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. Irstax Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. Irstax You may also need to pay certain employment taxes from your own funds. Irstax These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. Irstax Note. Irstax Additional Medicare Tax is only imposed on the employee. Irstax There is no employer share of Additional Medicare Tax. Irstax Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. Irstax You can deduct the employment taxes you must pay from your own funds as taxes. Irstax Example. Irstax You pay your employee $18,000 a year. Irstax However, after you withhold various taxes, your employee receives $14,500. Irstax You also pay an additional $1,500 in employment taxes. Irstax You should deduct the full $18,000 as wages. Irstax You can deduct the $1,500 you pay from your own funds as taxes. Irstax For more information on employment taxes, see Publication 15 (Circular E). Irstax Unemployment fund taxes. Irstax   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. Irstax Deduct these payments as taxes. Irstax Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. Irstax Excise taxes. Irstax   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. Irstax However, see Fuel taxes , later. Irstax   For more information on excise taxes, see Publication 510. Irstax Franchise taxes. Irstax   You can deduct corporate franchise taxes as a business expense. Irstax Fuel taxes. Irstax   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. Irstax Do not deduct these taxes as a separate item. Irstax   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Irstax For more information, see Publication 510. Irstax Occupational taxes. Irstax   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Irstax Personal property tax. Irstax   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. Irstax Sales tax. Irstax   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Irstax If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Irstax If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Irstax If the property is depreciable, add the sales tax to the basis for depreciation. Irstax For more information on basis, see Publication 551. Irstax    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Irstax Also, do not include these taxes in gross receipts or sales. Irstax Self-employment tax. Irstax   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. Irstax This deduction only affects your income tax. Irstax It does not affect your net earnings from self-employment or your self-employment tax. Irstax   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). Irstax   For more information on self-employment tax, see Publication 334. Irstax Additional Medicare Tax. Irstax   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. Irstax See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. Irstax Prev  Up  Next   Home   More Online Publications
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Irstax Publication 519 - Additional Material Table of Contents Appendix A—Tax Treaty Exemption Procedure for StudentsBelgium Bulgaria China, People's Republic of Cyprus Czech Republic, Estonia, Latvia, Lithuania, and Slovak Republic Egypt France Germany Iceland Indonesia Israel, Philippines and Thailand Korea, Norway, Poland, and Romania Morocco Netherlands Pakistan Portugal and Spain Slovenia and Venezuela Trinidad and Tobago Tunisia Appendix B—Tax Treaty Exemption Procedure for Teachers and ResearchersBelgium Bulgaria China, People's Republic of Commonwealth of Independent States Czech Republic and Slovak Republic Egypt, Hungary, Korea, Philippines, Poland, and Romania France Germany Greece India Indonesia Israel Italy Jamaica Luxembourg Netherlands Norway Pakistan Portugal Slovenia and Venezuela Thailand Trinidad and Tobago United Kingdom Frequently Asked Questions This section answers tax-related questions commonly asked by aliens. Irstax . Irstax What is the difference between a resident alien and a nonresident alien for tax purposes? . Irstax What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? . Irstax I am a student with an F-1 Visa. Irstax I was told that I was an exempt individual. Irstax Does this mean I am exempt from paying U. Irstax S. Irstax tax? . Irstax I am a resident alien. Irstax Can I claim any treaty benefits? . Irstax I am a nonresident alien with no dependents. Irstax I am working temporarily for a U. Irstax S. Irstax company. Irstax What return do I file? . Irstax I came to the United States on June 30th of last year. Irstax I have an H-1B Visa. Irstax What is my tax status, resident alien or nonresident alien? What tax return do I file? . Irstax When is my Form 1040NR due? . Irstax My spouse is a nonresident alien. Irstax Does he need a social security number? . Irstax I am a nonresident alien. Irstax Can I file a joint return with my spouse? . Irstax I have an H-1B Visa and my husband has an F-1 Visa. Irstax We both lived in the United States all of last year and had income. Irstax What kind of form should we file? Do we file separate returns or a joint return? . Irstax Is a dual-resident taxpayer the same as a dual-status taxpayer? . Irstax I am a nonresident alien and invested money in the U. Irstax S. Irstax stock market through a U. Irstax S. Irstax brokerage company. Irstax Are the dividends and the capital gains taxable? If yes, how are they taxed? . Irstax I am a nonresident alien. Irstax I receive U. Irstax S. Irstax social security benefits. Irstax Are my benefits taxable? . Irstax Do I have to pay taxes on my scholarship? . Irstax I am a nonresident alien. Irstax Can I claim the standard deduction? . Irstax I am a dual-status taxpayer. Irstax Can I claim the standard deduction? . Irstax I am filing Form 1040NR. Irstax Can I claim itemized deductions? . Irstax I am not a U. Irstax S. Irstax citizen. Irstax What exemptions can I claim? . Irstax What exemptions can I claim as a dual-status taxpayer? . Irstax I am single with a dependent child. Irstax I was a dual-status alien in 2013. Irstax Can I claim the earned income credit on my 2013 tax return? . Irstax I am a nonresident alien student. Irstax Can I claim an education credit on my Form 1040NR? . Irstax I am a nonresident alien, temporarily working in the U. Irstax S. Irstax under a J visa. Irstax Am I subject to social security and Medicare taxes? . Irstax I am a nonresident alien student. Irstax Social security taxes were withheld from my pay in error. Irstax How do I get a refund of these taxes? . Irstax I am an alien who will be leaving the United States. Irstax What forms do I have to file before I leave? . Irstax I filed a Form 1040-C when I left the United States. Irstax Do I still have to file an annual U. Irstax S. Irstax tax return? . Irstax What is the difference between a resident alien and a nonresident alien for tax purposes? For tax purposes, an alien is an individual who is not a U. Irstax S. Irstax citizen. Irstax Aliens are classified as resident aliens and nonresident aliens. Irstax Resident aliens are taxed on their worldwide income, the same as U. Irstax S. Irstax citizens. Irstax Nonresident aliens are taxed only on their U. Irstax S. Irstax source income and certain foreign source income that is effectively connected with a U. Irstax S. Irstax trade or business. Irstax The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Irstax These are the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Irstax The term “exempt individual” does not refer to someone exempt from U. Irstax S. Irstax tax. Irstax You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Irstax See chapter 1 . Irstax Generally, you cannot claim tax treaty benefits as a resident alien. Irstax However, there are exceptions. Irstax See Effect of Tax Treaties in chapter 1. Irstax See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Irstax You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Irstax S. Irstax source income on which tax was not fully paid by the amount withheld. Irstax You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Irstax You were a dual-status alien last year. Irstax As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Irstax However, for the part of the year that you were not present in the United States, you are a nonresident. Irstax File Form 1040. Irstax Print “Dual-Status Return” across the top. Irstax Attach a statement showing your U. Irstax S. Irstax source income for the part of the year you were a nonresident. Irstax You may use Form 1040NR as the statement. Irstax Print “Dual-Status Statement” across the top. Irstax See First Year of Residency in chapter 1 for rules on determining your residency starting date. Irstax If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Irstax See Social Security and Medicare Taxes in chapter 8. Irstax If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Irstax If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Irstax Do not use Form 843 to request a refund of Additional Medicare Tax. Irstax See Refund of Taxes Withheld in Error in chapter 8. Irstax Before leaving the United States, aliens generally must obtain a certificate of compliance. Irstax This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Irstax You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Irstax These forms are discussed in chapter 11. Irstax Form 1040-C is not an annual U. Irstax S. Irstax income tax return. Irstax If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Irstax Chapters 5 and 7 discuss filing an annual U. Irstax S. Irstax income tax return. Irstax . Irstax What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Irstax These are the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Irstax The term “exempt individual” does not refer to someone exempt from U. Irstax S. Irstax tax. Irstax You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Irstax See chapter 1 . Irstax Generally, you cannot claim tax treaty benefits as a resident alien. Irstax However, there are exceptions. Irstax See Effect of Tax Treaties in chapter 1. Irstax See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Irstax You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Irstax S. Irstax source income on which tax was not fully paid by the amount withheld. Irstax You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Irstax You were a dual-status alien last year. Irstax As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Irstax However, for the part of the year that you were not present in the United States, you are a nonresident. Irstax File Form 1040. Irstax Print “Dual-Status Return” across the top. Irstax Attach a statement showing your U. Irstax S. Irstax source income for the part of the year you were a nonresident. Irstax You may use Form 1040NR as the statement. Irstax Print “Dual-Status Statement” across the top. Irstax See First Year of Residency in chapter 1 for rules on determining your residency starting date. Irstax If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Irstax See Social Security and Medicare Taxes in chapter 8. Irstax If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Irstax If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Irstax Do not use Form 843 to request a refund of Additional Medicare Tax. Irstax See Refund of Taxes Withheld in Error in chapter 8. Irstax Before leaving the United States, aliens generally must obtain a certificate of compliance. Irstax This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Irstax You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Irstax These forms are discussed in chapter 11. Irstax Form 1040-C is not an annual U. Irstax S. Irstax income tax return. Irstax If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Irstax Chapters 5 and 7 discuss filing an annual U. Irstax S. Irstax income tax return. Irstax . Irstax I am a student with an F-1 Visa. Irstax I was told that I was an exempt individual. Irstax Does this mean I am exempt from paying U. Irstax S. Irstax tax? The term “exempt individual” does not refer to someone exempt from U. Irstax S. Irstax tax. Irstax You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Irstax See chapter 1 . Irstax Generally, you cannot claim tax treaty benefits as a resident alien. Irstax However, there are exceptions. Irstax See Effect of Tax Treaties in chapter 1. Irstax See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Irstax You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Irstax S. Irstax source income on which tax was not fully paid by the amount withheld. Irstax You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Irstax You were a dual-status alien last year. Irstax As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Irstax However, for the part of the year that you were not present in the United States, you are a nonresident. Irstax File Form 1040. Irstax Print “Dual-Status Return” across the top. Irstax Attach a statement showing your U. Irstax S. Irstax source income for the part of the year you were a nonresident. Irstax You may use Form 1040NR as the statement. Irstax Print “Dual-Status Statement” across the top. Irstax See First Year of Residency in chapter 1 for rules on determining your residency starting date. Irstax If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Irstax See Social Security and Medicare Taxes in chapter 8. Irstax If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Irstax If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Irstax Do not use Form 843 to request a refund of Additional Medicare Tax. Irstax See Refund of Taxes Withheld in Error in chapter 8. Irstax Before leaving the United States, aliens generally must obtain a certificate of compliance. Irstax This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Irstax You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Irstax These forms are discussed in chapter 11. Irstax Form 1040-C is not an annual U. Irstax S. Irstax income tax return. Irstax If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Irstax Chapters 5 and 7 discuss filing an annual U. Irstax S. Irstax income tax return. Irstax . Irstax I am a resident alien. Irstax Can I claim any treaty benefits? Generally, you cannot claim tax treaty benefits as a resident alien. Irstax However, there are exceptions. Irstax See Effect of Tax Treaties in chapter 1. Irstax See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Irstax You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Irstax S. Irstax source income on which tax was not fully paid by the amount withheld. Irstax You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Irstax You were a dual-status alien last year. Irstax As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Irstax However, for the part of the year that you were not present in the United States, you are a nonresident. Irstax File Form 1040. Irstax Print “Dual-Status Return” across the top. Irstax Attach a statement showing your U. Irstax S. Irstax source income for the part of the year you were a nonresident. Irstax You may use Form 1040NR as the statement. Irstax Print “Dual-Status Statement” across the top. Irstax See First Year of Residency in chapter 1 for rules on determining your residency starting date. Irstax If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Irstax See Social Security and Medicare Taxes in chapter 8. Irstax If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Irstax If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Irstax Do not use Form 843 to request a refund of Additional Medicare Tax. Irstax See Refund of Taxes Withheld in Error in chapter 8. Irstax Before leaving the United States, aliens generally must obtain a certificate of compliance. Irstax This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Irstax You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Irstax These forms are discussed in chapter 11. Irstax Form 1040-C is not an annual U. Irstax S. Irstax income tax return. Irstax If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Irstax Chapters 5 and 7 discuss filing an annual U. Irstax S. Irstax income tax return. Irstax . Irstax I am a nonresident alien with no dependents. Irstax I am working temporarily for a U. Irstax S. Irstax company. Irstax What return do I file? You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Irstax S. Irstax source income on which tax was not fully paid by the amount withheld. Irstax You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Irstax You were a dual-status alien last year. Irstax As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Irstax However, for the part of the year that you were not present in the United States, you are a nonresident. Irstax File Form 1040. Irstax Print “Dual-Status Return” across the top. Irstax Attach a statement showing your U. Irstax S. Irstax source income for the part of the year you were a nonresident. Irstax You may use Form 1040NR as the statement. Irstax Print “Dual-Status Statement” across the top. Irstax See First Year of Residency in chapter 1 for rules on determining your residency starting date. Irstax If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Irstax See Social Security and Medicare Taxes in chapter 8. Irstax If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Irstax If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Irstax Do not use Form 843 to request a refund of Additional Medicare Tax. Irstax See Refund of Taxes Withheld in Error in chapter 8. Irstax Before leaving the United States, aliens generally must obtain a certificate of compliance. Irstax This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Irstax You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Irstax These forms are discussed in chapter 11. Irstax Form 1040-C is not an annual U. Irstax S. Irstax income tax return. Irstax If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Irstax Chapters 5 and 7 discuss filing an annual U. Irstax S. Irstax income tax return. Irstax . Irstax I came to the United States on June 30th of last year. Irstax I have an H-1B Visa. Irstax What is my tax status, resident alien or nonresident alien? What tax return do I file? You were a dual-status alien last year. Irstax As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Irstax However, for the part of the year that you were not present in the United States, you are a nonresident. Irstax File Form 1040. Irstax Print “Dual-Status Return” across the top. Irstax Attach a statement showing your U. Irstax S. Irstax source income for the part of the year you were a nonresident. Irstax You may use Form 1040NR as the statement. Irstax Print “Dual-Status Statement” across the top. Irstax See First Year of Residency in chapter 1 for rules on determining your residency starting date. Irstax If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose for which you were admitted to the United States. Irstax See Social Security and Medicare Taxes in chapter 8. Irstax If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Irstax If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Irstax Do not use Form 843 to request a refund of Additional Medicare Tax. Irstax See Refund of Taxes Withheld in Error in chapter 8. Irstax Before leaving the United States, aliens generally must obtain a certificate of compliance. Irstax This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Irstax You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Irstax These forms are discussed in chapter 11. Irstax Form 1040-C is not an annual U. Irstax S. Irstax income tax return. Irstax If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Irstax Chapters 5 and 7 discuss filing an annual U. Irstax S. Irstax income tax return. Irstax . Irstax When is my Form 1040NR due? If you are an employee and you receive wages subject to U. Irstax S. Irstax income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Irstax If you file for the 2013 calendar year, your return is due April 15, 2014. Irstax If you are not an employee who receives wages subject to U. Irstax S. Irstax income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irstax For the 2013 calendar year, file your return by June 16, 2014. Irstax For more information on when and where to file, see chapter 7 . Irstax A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Irstax If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Irstax If you are a U. Irstax S. Irstax citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Irstax Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Irstax See Identification Number in chapter 5 for more information. Irstax Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Irstax However, nonresident aliens married to U. Irstax S. Irstax citizens or residents can choose to be treated as U. Irstax S. Irstax residents and file joint returns. Irstax For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Irstax Assuming both of you had these visas for all of last year, you are a resident alien. Irstax Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Irstax You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Irstax Your husband must file Form 1040NR or 1040NR-EZ. Irstax No. Irstax A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irstax See Effect of Tax Treaties in chapter 1. Irstax You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Irstax See chapter 6 . Irstax The following rules apply if the dividends and capital gains are not effectively connected with a U. Irstax S. Irstax trade or business. Irstax Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Irstax See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Irstax Dividends are generally taxed at a 30% (or lower treaty) rate. Irstax The brokerage company or payor of the dividends should withhold this tax at source. Irstax If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Irstax If the capital gains and dividends are effectively connected with a U. Irstax S. Irstax trade or business, they are taxed according to the same rules and at the same rates that apply to U. Irstax S. Irstax citizens and residents. Irstax If you are a nonresident alien, 85% of any U. Irstax S. Irstax social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Irstax See The 30% Tax in chapter 4. Irstax If you are a nonresident alien and the scholarship is not from U. Irstax S. Irstax sources, it is not subject to U. Irstax S. Irstax tax. Irstax See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Irstax S. Irstax sources. Irstax If your scholarship is from U. Irstax S. Irstax sources or you are a resident alien, your scholarship is subject to U. Irstax S. Irstax tax according to the following rules. Irstax If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Irstax However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Irstax See Scholarships and Fellowship Grants in chapter 3 for more information. Irstax If you are not a candidate for a degree, your scholarship is taxable. Irstax Nonresident aliens cannot claim the standard deduction. Irstax However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Irstax You cannot claim the standard deduction allowed on Form 1040. Irstax However, you can itemize any allowable deductions. Irstax Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Irstax However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Irstax S. Irstax trade or business. Irstax See Itemized Deductions in chapter 5. Irstax Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Irstax S. Irstax citizens. Irstax However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Irstax S. Irstax tax return. Irstax There are special rules for residents of Mexico, Canada, and South Korea; for U. Irstax S. Irstax nationals; and for students and business apprentices from India. Irstax See Exemptions in chapter 5. Irstax As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Irstax Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Irstax The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Irstax You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Irstax If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Irstax See chapter 6 for more information on dual-status aliens. Irstax If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Irstax However, if you are married and choose to file a joint return with a U. Irstax S. Irstax citizen or resident spouse, you may be eligible for these credits. Irstax See Nonresident Spouse Treated as a Resident in chapter 1. Irstax Generally, services you perform as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if you perform the services to carry out the purpose