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Turbotax 2012 Return

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Turbotax 2012 Return

Turbotax 2012 return 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. Turbotax 2012 return . Turbotax 2012 return What is the difference between a resident alien and a nonresident alien for tax purposes? . Turbotax 2012 return 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? . Turbotax 2012 return I am a student with an F-1 Visa. Turbotax 2012 return I was told that I was an exempt individual. Turbotax 2012 return Does this mean I am exempt from paying U. Turbotax 2012 return S. Turbotax 2012 return tax? . Turbotax 2012 return I am a resident alien. Turbotax 2012 return Can I claim any treaty benefits? . Turbotax 2012 return I am a nonresident alien with no dependents. Turbotax 2012 return I am working temporarily for a U. Turbotax 2012 return S. Turbotax 2012 return company. Turbotax 2012 return What return do I file? . Turbotax 2012 return I came to the United States on June 30th of last year. Turbotax 2012 return I have an H-1B Visa. Turbotax 2012 return What is my tax status, resident alien or nonresident alien? What tax return do I file? . Turbotax 2012 return When is my Form 1040NR due? . Turbotax 2012 return My spouse is a nonresident alien. Turbotax 2012 return Does he need a social security number? . Turbotax 2012 return I am a nonresident alien. Turbotax 2012 return Can I file a joint return with my spouse? . Turbotax 2012 return I have an H-1B Visa and my husband has an F-1 Visa. Turbotax 2012 return We both lived in the United States all of last year and had income. Turbotax 2012 return What kind of form should we file? Do we file separate returns or a joint return? . Turbotax 2012 return Is a dual-resident taxpayer the same as a dual-status taxpayer? . Turbotax 2012 return I am a nonresident alien and invested money in the U. Turbotax 2012 return S. Turbotax 2012 return stock market through a U. Turbotax 2012 return S. Turbotax 2012 return brokerage company. Turbotax 2012 return Are the dividends and the capital gains taxable? If yes, how are they taxed? . Turbotax 2012 return I am a nonresident alien. Turbotax 2012 return I receive U. Turbotax 2012 return S. Turbotax 2012 return social security benefits. Turbotax 2012 return Are my benefits taxable? . Turbotax 2012 return Do I have to pay taxes on my scholarship? . Turbotax 2012 return I am a nonresident alien. Turbotax 2012 return Can I claim the standard deduction? . Turbotax 2012 return I am a dual-status taxpayer. Turbotax 2012 return Can I claim the standard deduction? . Turbotax 2012 return I am filing Form 1040NR. Turbotax 2012 return Can I claim itemized deductions? . Turbotax 2012 return I am not a U. Turbotax 2012 return S. Turbotax 2012 return citizen. Turbotax 2012 return What exemptions can I claim? . Turbotax 2012 return What exemptions can I claim as a dual-status taxpayer? . Turbotax 2012 return I am single with a dependent child. Turbotax 2012 return I was a dual-status alien in 2013. Turbotax 2012 return Can I claim the earned income credit on my 2013 tax return? . Turbotax 2012 return I am a nonresident alien student. Turbotax 2012 return Can I claim an education credit on my Form 1040NR? . Turbotax 2012 return I am a nonresident alien, temporarily working in the U. Turbotax 2012 return S. Turbotax 2012 return under a J visa. Turbotax 2012 return Am I subject to social security and Medicare taxes? . Turbotax 2012 return I am a nonresident alien student. Turbotax 2012 return Social security taxes were withheld from my pay in error. Turbotax 2012 return How do I get a refund of these taxes? . Turbotax 2012 return I am an alien who will be leaving the United States. Turbotax 2012 return What forms do I have to file before I leave? . Turbotax 2012 return I filed a Form 1040-C when I left the United States. Turbotax 2012 return Do I still have to file an annual U. Turbotax 2012 return S. Turbotax 2012 return tax return? . Turbotax 2012 return 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. Turbotax 2012 return S. Turbotax 2012 return citizen. Turbotax 2012 return Aliens are classified as resident aliens and nonresident aliens. Turbotax 2012 return Resident aliens are taxed on their worldwide income, the same as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return Nonresident aliens are taxed only on their U. Turbotax 2012 return S. Turbotax 2012 return source income and certain foreign source income that is effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Turbotax 2012 return These are the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Turbotax 2012 return The term “exempt individual” does not refer to someone exempt from U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return 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. Turbotax 2012 return See chapter 1 . Turbotax 2012 return Generally, you cannot claim tax treaty benefits as a resident alien. Turbotax 2012 return However, there are exceptions. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Turbotax 2012 return You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Turbotax 2012 return S. Turbotax 2012 return source income on which tax was not fully paid by the amount withheld. Turbotax 2012 return You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Turbotax 2012 return You were a dual-status alien last year. Turbotax 2012 return 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. Turbotax 2012 return However, for the part of the year that you were not present in the United States, you are a nonresident. Turbotax 2012 return File Form 1040. Turbotax 2012 return Print “Dual-Status Return” across the top. Turbotax 2012 return Attach a statement showing your U. Turbotax 2012 return S. Turbotax 2012 return source income for the part of the year you were a nonresident. Turbotax 2012 return You may use Form 1040NR as the statement. Turbotax 2012 return Print “Dual-Status Statement” across the top. Turbotax 2012 return See First Year of Residency in chapter 1 for rules on determining your residency starting date. Turbotax 2012 return If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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. Turbotax 2012 return See Social Security and Medicare Taxes in chapter 8. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return Do not use Form 843 to request a refund of Additional Medicare Tax. Turbotax 2012 return See Refund of Taxes Withheld in Error in chapter 8. Turbotax 2012 return Before leaving the United States, aliens generally must obtain a certificate of compliance. Turbotax 2012 return This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Turbotax 2012 return You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Turbotax 2012 return These forms are discussed in chapter 11. Turbotax 2012 return Form 1040-C is not an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Turbotax 2012 return Chapters 5 and 7 discuss filing an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return . Turbotax 2012 return 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. Turbotax 2012 return These are the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Turbotax 2012 return The term “exempt individual” does not refer to someone exempt from U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return 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. Turbotax 2012 return See chapter 1 . Turbotax 2012 return Generally, you cannot claim tax treaty benefits as a resident alien. Turbotax 2012 return However, there are exceptions. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Turbotax 2012 return You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Turbotax 2012 return S. Turbotax 2012 return source income on which tax was not fully paid by the amount withheld. Turbotax 2012 return You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Turbotax 2012 return You were a dual-status alien last year. Turbotax 2012 return 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. Turbotax 2012 return However, for the part of the year that you were not present in the United States, you are a nonresident. Turbotax 2012 return File Form 1040. Turbotax 2012 return Print “Dual-Status Return” across the top. Turbotax 2012 return Attach a statement showing your U. Turbotax 2012 return S. Turbotax 2012 return source income for the part of the year you were a nonresident. Turbotax 2012 return You may use Form 1040NR as the statement. Turbotax 2012 return Print “Dual-Status Statement” across the top. Turbotax 2012 return See First Year of Residency in chapter 1 for rules on determining your residency starting date. Turbotax 2012 return If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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. Turbotax 2012 return See Social Security and Medicare Taxes in chapter 8. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return Do not use Form 843 to request a refund of Additional Medicare Tax. Turbotax 2012 return See Refund of Taxes Withheld in Error in chapter 8. Turbotax 2012 return Before leaving the United States, aliens generally must obtain a certificate of compliance. Turbotax 2012 return This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Turbotax 2012 return You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Turbotax 2012 return These forms are discussed in chapter 11. Turbotax 2012 return Form 1040-C is not an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Turbotax 2012 return Chapters 5 and 7 discuss filing an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return . Turbotax 2012 return I am a student with an F-1 Visa. Turbotax 2012 return I was told that I was an exempt individual. Turbotax 2012 return Does this mean I am exempt from paying U. Turbotax 2012 return S. Turbotax 2012 return tax? The term “exempt individual” does not refer to someone exempt from U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return 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. Turbotax 2012 return See chapter 1 . Turbotax 2012 return Generally, you cannot claim tax treaty benefits as a resident alien. Turbotax 2012 return However, there are exceptions. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Turbotax 2012 return You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Turbotax 2012 return S. Turbotax 2012 return source income on which tax was not fully paid by the amount withheld. Turbotax 2012 return You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Turbotax 2012 return You were a dual-status alien last year. Turbotax 2012 return 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. Turbotax 2012 return However, for the part of the year that you were not present in the United States, you are a nonresident. Turbotax 2012 return File Form 1040. Turbotax 2012 return Print “Dual-Status Return” across the top. Turbotax 2012 return Attach a statement showing your U. Turbotax 2012 return S. Turbotax 2012 return source income for the part of the year you were a nonresident. Turbotax 2012 return You may use Form 1040NR as the statement. Turbotax 2012 return Print “Dual-Status Statement” across the top. Turbotax 2012 return See First Year of Residency in chapter 1 for rules on determining your residency starting date. Turbotax 2012 return If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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. Turbotax 2012 return See Social Security and Medicare Taxes in chapter 8. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return Do not use Form 843 to request a refund of Additional Medicare Tax. Turbotax 2012 return See Refund of Taxes Withheld in Error in chapter 8. Turbotax 2012 return Before leaving the United States, aliens generally must obtain a certificate of compliance. Turbotax 2012 return This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Turbotax 2012 return You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Turbotax 2012 return These forms are discussed in chapter 11. Turbotax 2012 return Form 1040-C is not an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Turbotax 2012 return Chapters 5 and 7 discuss filing an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return . Turbotax 2012 return I am a resident alien. Turbotax 2012 return Can I claim any treaty benefits? Generally, you cannot claim tax treaty benefits as a resident alien. Turbotax 2012 return However, there are exceptions. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Turbotax 2012 return You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Turbotax 2012 return S. Turbotax 2012 return source income on which tax was not fully paid by the amount withheld. Turbotax 2012 return You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Turbotax 2012 return You were a dual-status alien last year. Turbotax 2012 return 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. Turbotax 2012 return However, for the part of the year that you were not present in the United States, you are a nonresident. Turbotax 2012 return File Form 1040. Turbotax 2012 return Print “Dual-Status Return” across the top. Turbotax 2012 return Attach a statement showing your U. Turbotax 2012 return S. Turbotax 2012 return source income for the part of the year you were a nonresident. Turbotax 2012 return You may use Form 1040NR as the statement. Turbotax 2012 return Print “Dual-Status Statement” across the top. Turbotax 2012 return See First Year of Residency in chapter 1 for rules on determining your residency starting date. Turbotax 2012 return If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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. Turbotax 2012 return See Social Security and Medicare Taxes in chapter 8. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return Do not use Form 843 to request a refund of Additional Medicare Tax. Turbotax 2012 return See Refund of Taxes Withheld in Error in chapter 8. Turbotax 2012 return Before leaving the United States, aliens generally must obtain a certificate of compliance. Turbotax 2012 return This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Turbotax 2012 return You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Turbotax 2012 return These forms are discussed in chapter 11. Turbotax 2012 return Form 1040-C is not an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Turbotax 2012 return Chapters 5 and 7 discuss filing an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return . Turbotax 2012 return I am a nonresident alien with no dependents. Turbotax 2012 return I am working temporarily for a U. Turbotax 2012 return S. Turbotax 2012 return company. Turbotax 2012 return 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. Turbotax 2012 return S. Turbotax 2012 return source income on which tax was not fully paid by the amount withheld. Turbotax 2012 return You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Turbotax 2012 return You were a dual-status alien last year. Turbotax 2012 return 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. Turbotax 2012 return However, for the part of the year that you were not present in the United States, you are a nonresident. Turbotax 2012 return File Form 1040. Turbotax 2012 return Print “Dual-Status Return” across the top. Turbotax 2012 return Attach a statement showing your U. Turbotax 2012 return S. Turbotax 2012 return source income for the part of the year you were a nonresident. Turbotax 2012 return You may use Form 1040NR as the statement. Turbotax 2012 return Print “Dual-Status Statement” across the top. Turbotax 2012 return See First Year of Residency in chapter 1 for rules on determining your residency starting date. Turbotax 2012 return If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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. Turbotax 2012 return See Social Security and Medicare Taxes in chapter 8. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return Do not use Form 843 to request a refund of Additional Medicare Tax. Turbotax 2012 return See Refund of Taxes Withheld in Error in chapter 8. Turbotax 2012 return Before leaving the United States, aliens generally must obtain a certificate of compliance. Turbotax 2012 return This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Turbotax 2012 return You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Turbotax 2012 return These forms are discussed in chapter 11. Turbotax 2012 return Form 1040-C is not an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Turbotax 2012 return Chapters 5 and 7 discuss filing an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return . Turbotax 2012 return I came to the United States on June 30th of last year. Turbotax 2012 return I have an H-1B Visa. Turbotax 2012 return What is my tax status, resident alien or nonresident alien? What tax return do I file? You were a dual-status alien last year. Turbotax 2012 return 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. Turbotax 2012 return However, for the part of the year that you were not present in the United States, you are a nonresident. Turbotax 2012 return File Form 1040. Turbotax 2012 return Print “Dual-Status Return” across the top. Turbotax 2012 return Attach a statement showing your U. Turbotax 2012 return S. Turbotax 2012 return source income for the part of the year you were a nonresident. Turbotax 2012 return You may use Form 1040NR as the statement. Turbotax 2012 return Print “Dual-Status Statement” across the top. Turbotax 2012 return See First Year of Residency in chapter 1 for rules on determining your residency starting date. Turbotax 2012 return If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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. Turbotax 2012 return See Social Security and Medicare Taxes in chapter 8. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return Do not use Form 843 to request a refund of Additional Medicare Tax. Turbotax 2012 return See Refund of Taxes Withheld in Error in chapter 8. Turbotax 2012 return Before leaving the United States, aliens generally must obtain a certificate of compliance. Turbotax 2012 return This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Turbotax 2012 return You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Turbotax 2012 return These forms are discussed in chapter 11. Turbotax 2012 return Form 1040-C is not an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Turbotax 2012 return Chapters 5 and 7 discuss filing an annual U. Turbotax 2012 return S. Turbotax 2012 return income tax return. Turbotax 2012 return . Turbotax 2012 return When is my Form 1040NR due? If you are an employee and you receive wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Turbotax 2012 return If you file for the 2013 calendar year, your return is due April 15, 2014. Turbotax 2012 return If you are not an employee who receives wages subject to U. Turbotax 2012 return S. Turbotax 2012 return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Turbotax 2012 return For the 2013 calendar year, file your return by June 16, 2014. Turbotax 2012 return For more information on when and where to file, see chapter 7 . Turbotax 2012 return A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Turbotax 2012 return If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Turbotax 2012 return If you are a U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Turbotax 2012 return See Identification Number in chapter 5 for more information. Turbotax 2012 return Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Turbotax 2012 return However, nonresident aliens married to U. Turbotax 2012 return S. Turbotax 2012 return citizens or residents can choose to be treated as U. Turbotax 2012 return S. Turbotax 2012 return residents and file joint returns. Turbotax 2012 return For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return Assuming both of you had these visas for all of last year, you are a resident alien. Turbotax 2012 return Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Turbotax 2012 return 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. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Turbotax 2012 return Your husband must file Form 1040NR or 1040NR-EZ. Turbotax 2012 return No. Turbotax 2012 return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Turbotax 2012 return See Effect of Tax Treaties in chapter 1. Turbotax 2012 return You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Turbotax 2012 return See chapter 6 . Turbotax 2012 return The following rules apply if the dividends and capital gains are not effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Turbotax 2012 return See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Turbotax 2012 return Dividends are generally taxed at a 30% (or lower treaty) rate. Turbotax 2012 return The brokerage company or payor of the dividends should withhold this tax at source. Turbotax 2012 return If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Turbotax 2012 return If the capital gains and dividends are effectively connected with a U. Turbotax 2012 return S. Turbotax 2012 return trade or business, they are taxed according to the same rules and at the same rates that apply to U. Turbotax 2012 return S. Turbotax 2012 return citizens and residents. Turbotax 2012 return If you are a nonresident alien, 85% of any U. Turbotax 2012 return S. Turbotax 2012 return 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. Turbotax 2012 return See The 30% Tax in chapter 4. Turbotax 2012 return If you are a nonresident alien and the scholarship is not from U. Turbotax 2012 return S. Turbotax 2012 return sources, it is not subject to U. Turbotax 2012 return S. Turbotax 2012 return tax. Turbotax 2012 return See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources. Turbotax 2012 return If your scholarship is from U. Turbotax 2012 return S. Turbotax 2012 return sources or you are a resident alien, your scholarship is subject to U. Turbotax 2012 return S. Turbotax 2012 return tax according to the following rules. Turbotax 2012 return 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. Turbotax 2012 return However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Turbotax 2012 return See Scholarships and Fellowship Grants in chapter 3 for more information. Turbotax 2012 return If you are not a candidate for a degree, your scholarship is taxable. Turbotax 2012 return Nonresident aliens cannot claim the standard deduction. Turbotax 2012 return However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Turbotax 2012 return You cannot claim the standard deduction allowed on Form 1040. Turbotax 2012 return However, you can itemize any allowable deductions. Turbotax 2012 return Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Turbotax 2012 return However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Turbotax 2012 return S. Turbotax 2012 return trade or business. Turbotax 2012 return See Itemized Deductions in chapter 5. Turbotax 2012 return Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Turbotax 2012 return S. Turbotax 2012 return citizens. Turbotax 2012 return However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Turbotax 2012 return S. Turbotax 2012 return tax return. Turbotax 2012 return There are special rules for residents of Mexico, Canada, and South Korea; for U. Turbotax 2012 return S. Turbotax 2012 return nationals; and for students and business apprentices from India. Turbotax 2012 return See Exemptions in chapter 5. Turbotax 2012 return As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Turbotax 2012 return 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. Turbotax 2012 return 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. Turbotax 2012 return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Turbotax 2012 return If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Turbotax 2012 return See chapter 6 for more information on dual-status aliens. Turbotax 2012 return If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Turbotax 2012 return However, if you are married and choose to file a joint return with a U. Turbotax 2012 return S. Turbotax 2012 return citizen or resident spouse, you may be eligible for these credits. Turbotax 2012 return See Nonresident Spouse Treated as a Resident in chapter 1. Turbotax 2012 return 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
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Understanding Your CP3219A Notice

We've received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. The notice explains how the amount was calculated and how you can challenge it in U.S Tax Court.


What you need to do

  • Read the notice carefully – it explains the proposed increase or decrease in your tax. Note: The amounts shown as due on the notice may not match your previous notice because not all items can be challenged in tax court.
  • If you agree with the changes – sign the enclosed Form 5564, Notice of Deficiency - Waiver, and mail to the address shown on the notice.
  • If you don’t agree with the changes – you have the right to challenge the proposed changes by filing a petition with the U.S. Tax Court no later than the date listed on the notice. The Court can't consider your case if the petition is filed late.
  • If you don’t agree with the changes and have additional information – mail the information to the address listed on the notice. Our review won't extend the time you have to file a petition with the U.S. Tax Court.

You may want to…


Answers to Common Questions

Why did I receive the notice?

We received information from a third party that doesn’t match the information you reported on your return. This affects your tax return.

Is the notice a bill?

No. It shows the information we’ve received and how it affects your tax. It also provides you contact information for filing a petition with the tax court.

Can I get an extension of time to respond?

No. Once the CP3219A, Notice of Deficiency has been issued, we are unable to extend the time you have to respond or to file a petition with the U.S. Tax Court.

What do I need to do?

If you agree, sign the Form 5564, Notice of Deficiency - Waiver response form and mail to the address on the notice.

What if the information is wrong or if I disagree?

If you want us to consider additional information, send it to us, along with a written explanation supporting your position. You may contact us with the phone number provided on the first page of the notice. You may want to contact whoever reported the information and ask them to correct it. You should send your response to us as soon as possible, since we can't extend the time you have to file a petition with the tax court.

The information is wrong because someone else is using my name and social security number. What can I do?

Call us and let us know. You also can use this link to go to our Identity theft information webpage to find out more about what you can do.

I reported the information but I reported it incorrectly. Can I call you to correct my return?

We can accept your information over the phone for incorrectly reported information as long as the mistake doesn't increase or decrease your tax. If the information you provide over the phone isn't enough to resolve all issues with your case, we're unable to extend the time you have to file a petition with the tax court.

Do I need to amend my return?

If the information displayed in the “Changes to your tax return” section of the notice is correct, you don't need to amend your return unless you have additional income, credits or expenses to report. If you agree with our notice, follow the instructions to sign the Form 5564, Notice of Deficiency - Waiver and return it to us in the envelope provided. 

If you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help at an IRS Taxpayer Assistance Center.

I want to check a copy of my original return. I don’t have one. How can I get one?

You can get a transcript of your return on our ”Order a Transcript” webpage at irs.gov. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return. We can't extend the time allowed to petition the tax court.

I don’t want a transcript of my return. I want a copy. How can I get one?

Did an accountant or some other person prepare your return? You could ask them for a copy.

I can’t get a copy of my return from a tax preparer. How else can I get a copy of it?

You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for tax return requests.

How can I find an IRS Taxpayer Assistance Center?

We have centers located throughout the country. Our website has directions on how to find the center nearest to you.

Why did it take you so long to contact me about this matter?

Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.

The notice says my taxes will increase. Will I be charged interest on the money I owe?

Yes, interest accrues on the unpaid balance until it is paid in full.

What happens if I can’t pay the full amount I owe?

You can make a payment plan with us when you can’t pay the full amount you owe.

How can I make a payment plan?

Call us at the toll-free number on the top right corner of your notice to talk about payment plans or learn more about them at this web page.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements before filing your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you’ve filed your return

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 28-Feb-2014

The Turbotax 2012 Return

Turbotax 2012 return 3. Turbotax 2012 return   Lifetime Learning Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. Turbotax 2012 return They are the American opportunity credit and the lifetime learning credit. Turbotax 2012 return This chapter discusses the lifetime learning credit. Turbotax 2012 return The American opportunity credit is discussed in chapter 2, The American Opportunity Credit . Turbotax 2012 return This chapter explains: Who can claim the lifetime learning credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. Turbotax 2012 return What is the tax benefit of the lifetime learning credit. Turbotax 2012 return   For the tax year, you may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students. Turbotax 2012 return There is no limit on the number of years the lifetime learning credit can be claimed for each student. Turbotax 2012 return   A tax credit reduces the amount of income tax you may have to pay. Turbotax 2012 return Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Turbotax 2012 return The lifetime learning credit is a nonrefundable credit. Turbotax 2012 return This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you. Turbotax 2012 return   Your allowable lifetime learning credit may be limited by the amount of your income and the amount of your tax. Turbotax 2012 return Can you claim more than one education credit this year. Turbotax 2012 return   For each student, you can elect for any year only one of the credits. Turbotax 2012 return For example, if you elect to take the lifetime learning credit for a child on your 2013 tax return, you cannot, for that same child, also claim the American opportunity credit for 2013. Turbotax 2012 return   If you are eligible to claim the lifetime learning credit and you are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. Turbotax 2012 return   If you pay qualified education expenses for more than one student in the same year, you can choose to take certain credits on a per-student, per-year basis. Turbotax 2012 return This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. Turbotax 2012 return Differences between the American opportunity and lifetime learning credits. Turbotax 2012 return   There are several differences between these two credits. Turbotax 2012 return For example, you can claim the American opportunity credit for the same student for no more than 4 tax years, but any year in which the Hope Scholarship Credit was claimed counts toward the 4 years. Turbotax 2012 return However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. Turbotax 2012 return The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. Turbotax 2012 return Overview of the lifetime learning credit. Turbotax 2012 return   See Table 3-1, Overview of the Lifetime Learning Credit for the basics of the lifetime learning credit. Turbotax 2012 return The details are discussed in this chapter. Turbotax 2012 return Can You Claim the Credit The following rules will help you determine if you are eligible to claim the lifetime learning credit on your tax return. Turbotax 2012 return Who Can Claim the Credit Generally, you can claim the lifetime learning credit if all three of the following requirements are met. Turbotax 2012 return You pay qualified education expenses of higher education. Turbotax 2012 return You pay the education expenses for an eligible student. Turbotax 2012 return The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Turbotax 2012 return Table 3-1. Turbotax 2012 return Overview of the Lifetime Learning Credit Maximum credit Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $127,000 if married filling jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable Nonrefundable—credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available for an unlimited number of years Type of program required Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Available for one or more courses Felony drug conviction Felony drug convictions do not make the student ineligible Qualified expenses Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Note. Turbotax 2012 return Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. Turbotax 2012 return “Qualified education expenses” are defined later under Qualified Education Expenses . Turbotax 2012 return “Eligible students” are defined later under Who Is an Eligible Student . Turbotax 2012 return A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Turbotax 2012 return You may find Figure 3-1, Can You Claim the Lifetime Learning Credit for 2013 , later, helpful in determining if you can claim a lifetime learning credit on your tax return. Turbotax 2012 return Who Cannot Claim the Credit You cannot claim the lifetime learning credit for 2013 if any of the following apply. Turbotax 2012 return Your filing status is married filing separately. Turbotax 2012 return You are listed as a dependent on another person's tax return (such as your parents'). Turbotax 2012 return See Who Can Claim a Dependent's Expenses , later. Turbotax 2012 return Your modified adjusted gross income (MAGI) is $63,000 or more ($127,000 or more in the case of a joint return). Turbotax 2012 return MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Turbotax 2012 return You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Turbotax 2012 return More information on nonresident aliens can be found in Publication 519. Turbotax 2012 return You claim the American Opportunity Credit (see chapter 2) or a Tuition and Fees Deduction (see chapter 6) for the same student in 2013. Turbotax 2012 return What Expenses Qualify The lifetime learning credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Turbotax 2012 return Generally, the credit is allowed for qualified education expenses paid in 2013 for an academic period beginning in 2013 or in the first 3 months of 2014. Turbotax 2012 return For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 credit. Turbotax 2012 return Academic period. Turbotax 2012 return   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Turbotax 2012 return In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Turbotax 2012 return Paid with borrowed funds. Turbotax 2012 return   You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. Turbotax 2012 return You use the expenses to figure the lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. Turbotax 2012 return Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Turbotax 2012 return Student withdraws from class(es). Turbotax 2012 return   You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws. Turbotax 2012 return Qualified Education Expenses For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. Turbotax 2012 return The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. Turbotax 2012 return Eligible educational institution. Turbotax 2012 return   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Turbotax 2012 return S. Turbotax 2012 return Department of Education. Turbotax 2012 return It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Turbotax 2012 return The educational institution should be able to tell you if it is an eligible educational institution. Turbotax 2012 return   Certain educational institutions located outside the United States also participate in the U. Turbotax 2012 return S. Turbotax 2012 return Department of Education's Federal Student Aid (FSA) programs. Turbotax 2012 return Related expenses. Turbotax 2012 return   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance. Turbotax 2012 return Prepaid expenses. Turbotax 2012 return   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Turbotax 2012 return See Academic period , earlier. Turbotax 2012 return For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Turbotax 2012 return You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Turbotax 2012 return In the following examples, assume that each student is an eligible student at an eligible educational institution. Turbotax 2012 return Example 1. Turbotax 2012 return   Jackson is a sophomore in University V's degree program in dentistry. Turbotax 2012 return This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Turbotax 2012 return Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified expense. Turbotax 2012 return Example 2. Turbotax 2012 return   Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Turbotax 2012 return The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Turbotax 2012 return Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Turbotax 2012 return Donna bought hers at College W's bookstore. Turbotax 2012 return Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Turbotax 2012 return Example 3. Turbotax 2012 return   When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Turbotax 2012 return This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and student government. Turbotax 2012 return No portion of the fee covers personal expenses. Turbotax 2012 return Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Turbotax 2012 return Therefore, it is a qualified expense. Turbotax 2012 return No Double Benefit Allowed You cannot do any of the following: Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime learning credit based on those same expenses. Turbotax 2012 return Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student. Turbotax 2012 return Claim a lifetime learning credit and an American opportunity credit based on the same qualified education expenses. Turbotax 2012 return Claim a lifetime learning credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). Turbotax 2012 return See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. Turbotax 2012 return Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Turbotax 2012 return See Adjustments to Qualified Education Expenses, next. Turbotax 2012 return This image is too large to be displayed in the current screen. Turbotax 2012 return Please click the link to view the image. Turbotax 2012 return Figure 3-1 Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Turbotax 2012 return The result is the amount of adjusted qualified education expenses for each student. Turbotax 2012 return Tax-free educational assistance. Turbotax 2012 return   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Turbotax 2012 return See Academic period , earlier. Turbotax 2012 return   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Turbotax 2012 return This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Turbotax 2012 return   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed , later. Turbotax 2012 return If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed , later. Turbotax 2012 return   Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Turbotax 2012 return Generally, any scholarship or fellowship is treated as tax free. Turbotax 2012 return However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Turbotax 2012 return The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Turbotax 2012 return The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Turbotax 2012 return You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Turbotax 2012 return For examples, see Coordination with Pell grants and other scholarships, later. Turbotax 2012 return Refunds. Turbotax 2012 return   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Turbotax 2012 return Some tax-free educational assistance received after 2013 may be treated as a refund. Turbotax 2012 return See Tax-free educational assistance , earlier. Turbotax 2012 return Refunds received in 2013. Turbotax 2012 return   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Turbotax 2012 return Refunds received after 2013 but before your income tax return is filed. Turbotax 2012 return   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Turbotax 2012 return Refunds received after 2013 and after your income tax return is filed. Turbotax 2012 return   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Turbotax 2012 return See Credit recapture, next. Turbotax 2012 return Credit recapture. Turbotax 2012 return    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Turbotax 2012 return You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. Turbotax 2012 return You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). Turbotax 2012 return Include that amount as an additional tax for the year the refund or tax-free assistance was received. Turbotax 2012 return Example. Turbotax 2012 return   You pay $9,300 in tuition and fees in December 2013, and your child began college in January 2014. Turbotax 2012 return You filed your 2013 tax return on February 14, 2014, and claimed a lifetime learning credit of $1,860. Turbotax 2012 return You claimed no other tax credits. Turbotax 2012 return After you filed your return, your child withdrew from two courses and you received a refund of $2,900. Turbotax 2012 return You must refigure your 2013 lifetime learning credit using $6,400 of qualified education expenses instead of $9,300. Turbotax 2012 return The refigured credit is $1,280 and your tax liability increased by $580. Turbotax 2012 return See instructions for your 2014 income tax return to determine where to include this tax. Turbotax 2012 return If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. Turbotax 2012 return Amounts that do not reduce qualified education expenses. Turbotax 2012 return   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Turbotax 2012 return   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Turbotax 2012 return The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses, as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Turbotax 2012 return The use of the money is not restricted. Turbotax 2012 return For examples, see Adjustments to Qualified Education Expenses in chapter 2, American Opportunity Credit. Turbotax 2012 return Coordination with Pell grants and other scholarships. Turbotax 2012 return   In some cases, you may be able to reduce your tax liability by including scholarships in income. Turbotax 2012 return If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. Turbotax 2012 return The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Turbotax 2012 return Example 1—No scholarship. Turbotax 2012 return Judy Green, who is unmarried, is taking courses at a public community college to be recertified to teach in public schools. Turbotax 2012 return Her AGI and her MAGI, for purposes of the credit, are $27,000. Turbotax 2012 return Judy takes the standard deduction of $5,950 and personal exemption of $3,800, reducing her AGI to taxable income of $17,250 and her tax before credits is $2,156. Turbotax 2012 return She claims no credits other than the lifetime learning credit. Turbotax 2012 return In July 2013 she paid $700 for the summer 2013 semester; in August 2013 she paid $1,900 for the fall 2013 semester; and in December 2013 she paid another $1,900 for the spring semester beginning in January 2014. Turbotax 2012 return Judy and the college meet all requirements for the lifetime learning tax credit. Turbotax 2012 return She can use all of the $4,500 tuition she paid in 2013 when figuring her 2013 lifetime learning credit. Turbotax 2012 return She claims a $900 lifetime learning credit and her tax after credits is $1,256. Turbotax 2012 return Example 2—Scholarship excluded from income. Turbotax 2012 return The facts are the same as in Example 1—No scholarship, except that Judy was awarded a $1,500 scholarship. Turbotax 2012 return Under the terms of her scholarship, it may be used to pay any educational expenses, including room and board. Turbotax 2012 return If Judy excludes the scholarship from income, she will be deemed (for purposes of computing her education credit) as having used the scholarship to pay for tuition, required fees, and course materials. Turbotax 2012 return Only $3,000 of the $4,500 tuition she paid in 2013 could be used when figuring her 2013 lifetime learning credit. Turbotax 2012 return Her lifetime learning credit would be reduced to $600 and her tax after credits would be $1,556. Turbotax 2012 return Example 3—Scholarship included in income. Turbotax 2012 return The facts are the same as in Example 2—Scholarship excluded from income. Turbotax 2012 return If, unlike Example 2, Judy includes the $1,500 scholarship in income, she will be deemed to have used the entire scholarship to pay for room and board. Turbotax 2012 return Judy's AGI will increase to $28,500, her taxable income would be $18,750, and her tax before credits would be $2,381. Turbotax 2012 return She would be able to use the $4,500 of adjusted qualified education expenses to figure her credit. Turbotax 2012 return Judy could claim a $900 lifetime learning credit and her tax after credits would be $1,481. Turbotax 2012 return Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Turbotax 2012 return This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Turbotax 2012 return Sports, games, hobbies, and noncredit courses. Turbotax 2012 return   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Turbotax 2012 return However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. Turbotax 2012 return Comprehensive or bundled fees. Turbotax 2012 return   Some eligible educational institutions combine all of their fees for an academic period into one amount. Turbotax 2012 return If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Turbotax 2012 return The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. Turbotax 2012 return See Figuring the Credit , later, for more information about Form 1098-T. Turbotax 2012 return Who Is an Eligible Student For purposes of the lifetime learning credit, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Turbotax 2012 return Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim a lifetime learning credit for your dependent's expenses for that year. Turbotax 2012 return For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent. Turbotax 2012 return You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Turbotax 2012 return IF you. Turbotax 2012 return . Turbotax 2012 return . Turbotax 2012 return THEN only. Turbotax 2012 return . Turbotax 2012 return . Turbotax 2012 return claim an exemption on your tax return for a dependent who is an eligible student you can claim the lifetime learning credit based on that dependent's expenses. Turbotax 2012 return The dependent cannot claim the credit. Turbotax 2012 return do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the lifetime learning credit. Turbotax 2012 return You cannot claim the credit based on this dependent's expenses. Turbotax 2012 return Expenses paid by dependent. Turbotax 2012 return   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Turbotax 2012 return Include these expenses when figuring the amount of your lifetime learning credit. Turbotax 2012 return    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Turbotax 2012 return Expenses paid by you. Turbotax 2012 return   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the lifetime learning credit. Turbotax 2012 return If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the lifetime learning credit. Turbotax 2012 return Expenses paid by others. Turbotax 2012 return   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Turbotax 2012 return In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Turbotax 2012 return If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Turbotax 2012 return Example. Turbotax 2012 return In 2013, Ms. Turbotax 2012 return Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Turbotax 2012 return For purposes of claiming a lifetime learning credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. Turbotax 2012 return Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim a lifetime learning credit. Turbotax 2012 return If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim a lifetime learning credit. Turbotax 2012 return If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning credit. Turbotax 2012 return Tuition reduction. Turbotax 2012 return   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Turbotax 2012 return If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Turbotax 2012 return For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Turbotax 2012 return Figuring the Credit The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. Turbotax 2012 return The maximum amount of lifetime learning credit you can claim for 2013 is $2,000 (20% × $10,000). Turbotax 2012 return However, that amount may be reduced based on your MAGI. Turbotax 2012 return See Effect of the Amount of Your Income on the Amount of Your Credit , later. Turbotax 2012 return Example. Turbotax 2012 return Bruce and Toni Harper are married and file a joint tax return. Turbotax 2012 return For 2013, their MAGI is $75,000. Turbotax 2012 return Toni is attending a local college (an eligible educational institution) to earn credits toward a degree in nursing. Turbotax 2012 return She already has a bachelor's degree in history and wants to become a nurse. Turbotax 2012 return In August 2013, Toni paid $5,000 of qualified education expenses for her fall 2013 semester. Turbotax 2012 return Bruce and Toni can claim a $1,000 (20% × $5,000) lifetime learning credit on their 2013 joint tax return. Turbotax 2012 return Form 1098-T. Turbotax 2012 return   To help you figure your lifetime learning credit, the student should receive Form 1098-T. Turbotax 2012 return Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Turbotax 2012 return An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Turbotax 2012 return However, the amounts in boxes 1 and 2 of Form 1098-T might be different from what you paid. Turbotax 2012 return When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Turbotax 2012 return   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Turbotax 2012 return    The eligible educational institution may ask for a completed Form W-9S, or similar statement to obtain the student's name, address, and taxpayer identification number. Turbotax 2012 return Effect of the Amount of Your Income on the Amount of Your Credit The amount of your lifetime learning credit is phased out (gradually reduced) if your MAGI is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). Turbotax 2012 return You cannot claim a lifetime learning credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). Turbotax 2012 return Modified adjusted gross income (MAGI). Turbotax 2012 return   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Turbotax 2012 return MAGI when using Form 1040A. Turbotax 2012 return   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Turbotax 2012 return MAGI when using Form 1040. Turbotax 2012 return   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Turbotax 2012 return You can use Worksheet 3-1 to figure your MAGI. Turbotax 2012 return Worksheet 3-1. Turbotax 2012 return MAGI for the Lifetime Learning Credit 1. Turbotax 2012 return Enter your adjusted gross income  (Form 1040, line 38)   1. Turbotax 2012 return   2. Turbotax 2012 return Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Turbotax 2012 return       3. Turbotax 2012 return Enter your foreign housing deduction (Form 2555, line 50)   3. Turbotax 2012 return       4. Turbotax 2012 return Enter the amount of income from Puerto Rico you are excluding   4. Turbotax 2012 return       5. Turbotax 2012 return Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Turbotax 2012 return       6. Turbotax 2012 return Add the amounts on lines 2, 3, 4, and 5   6. Turbotax 2012 return   7. Turbotax 2012 return Add the amounts on lines 1 and 6. Turbotax 2012 return  This is your modified adjusted  gross income. Turbotax 2012 return Enter this amount  on Form 8863, line 14   7. Turbotax 2012 return   Phaseout. Turbotax 2012 return   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863. Turbotax 2012 return The same method is shown in the following example. Turbotax 2012 return Example. Turbotax 2012 return You are filing a joint return with a MAGI of $112,000. Turbotax 2012 return In 2013, you paid $6,600 of qualified education expenses. Turbotax 2012 return You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). Turbotax 2012 return The result is a $1,320 (20% x $6,600) tentative credit. Turbotax 2012 return Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. Turbotax 2012 return The numerator of the fraction is $127,000 (the upper limit for those filing a joint return) minus your MAGI. Turbotax 2012 return The denominator is $20,000, the range of incomes for the phaseout ($107,000 to $127,000). Turbotax 2012 return The result is the amount of your phased out (reduced) lifetime learning credit ($990). Turbotax 2012 return   $1,320 × $127,000 − $112,000  $20,000 = $990   Claiming the Credit You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Turbotax 2012 return Enter the credit on Form 1040, line 49, or Form 1040A, line 31. Turbotax 2012 return Note. Turbotax 2012 return In Appendix A, Illustrated Example of Education Credits at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. Turbotax 2012 return Prev  Up  Next   Home   More Online Publications