Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

1040 Ez Free

Forms To File 2012 Taxes2009 Tax SoftwareFile 2007 Taxes OnlineIrs 1040 Ez Instructions2011 Federal Tax Forms 1040There Previous Years Tax Software That FreeFree State Tax HelpTax Software For 2012Federal Tax Income ReturnFiling 2011 Taxes In 20132011 Tax Booklet2011 Tax TablesState Tax Filing FreeH & R Block 1040xPrevious Years Tax FormsWww Irs Gov Form 1040xTaxslayer Free For MilitaryFile Tax ReturnSelf Employment Taxes2014 1040ez Forms1040ez 2012 Tax FormTurbo Tax Military2011 1040Federal Income Tax FormFile Amended Tax ReturnH And R Block Free FilingE File 2012 Tax Return2011 Taxes TurbotaxDo Active Duty Military Pay State Taxes2010 1040 Tax FormFree Online Tax Filing State FederalWww Handrblock ComFederal Tax Form 1040xFile 2007 Taxes For FreeCan I Efile My State Taxes For FreeIrs FormsTax Return Preparation State Income Taxes2008 1040x2011 Taxes OnlineHr Block 2011 Tax Software

1040 Ez Free

1040 ez free Publication 555 - Main Content Table of Contents Domicile Community or Separate Property and Income Identifying Income, Deductions, and CreditsIncome Exemptions Deductions Credits, Taxes, and Payments Community Property Laws DisregardedRequesting relief. 1040 ez free Equitable relief. 1040 ez free Earned income. 1040 ez free Trade or business income. 1040 ez free Partnership income or loss. 1040 ez free Separate property income. 1040 ez free Social security benefits. 1040 ez free Other income. 1040 ez free End of the Community Preparing a Federal Income Tax ReturnJoint Return Versus Separate Returns Separate Return Preparation How To Get Tax HelpLow Income Taxpayer Clinics Domicile Whether you have community property and community income depends on the state where you are domiciled. 1040 ez free If you and your spouse (or your registered domestic partner) have different domiciles, check the laws of each to see whether you have community property or community income. 1040 ez free You have only one domicile even if you have more than one home. 1040 ez free Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. 1040 ez free The question of your domicile is mainly a matter of your intention as indicated by your actions. 1040 ez free You must be able to show that you intend a given place or state to be your permanent home. 1040 ez free If you move into or out of a community property state during the year, you may or may not have community income. 1040 ez free Factors considered in determining domicile include: Where you pay state income tax, Where you vote, Location of property you own, Your citizenship, Length of residence, and Business and social ties to the community. 1040 ez free Amount of time spent. 1040 ez free    The amount of time spent in one place does not always explain the difference between home and domicile. 1040 ez free A temporary home or residence may continue for months or years while a domicile may be established the first moment you occupy the property. 1040 ez free Your intent is the determining factor in proving where you have your domicile. 1040 ez free    Note. 1040 ez free When this publication refers to where you live, it means your domicile. 1040 ez free Community or Separate Property and Income If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income. 1040 ez free Likewise, a registered domestic partner must report half of all community income and all of his or her separate income on his or her federal tax return. 1040 ez free You each must attach your Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. 1040 ez free Generally, the laws of the state in which you are domiciled govern whether you have community property and community income or separate property and separate income for federal tax purposes. 1040 ez free The following is a summary of the general rules. 1040 ez free These rules are also shown in Table 1. 1040 ez free Community property. 1040 ez free    Generally, community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. 1040 ez free That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. 1040 ez free That cannot be identified as separate property. 1040 ez free Community income. 1040 ez free    Generally, community income is income from: Community property. 1040 ez free Salaries, wages, and other pay received for the services performed by you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. 1040 ez free Real estate that is treated as community property under the laws of the state where the property is located. 1040 ez free Note Separate property. 1040 ez free    Generally, separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). 1040 ez free Money earned while domiciled in a noncommunity property state. 1040 ez free Property that you or your spouse (or your registered domestic partner) received separately as a gift or inheritance during your marriage (or registered domestic partnership). 1040 ez free Property that you or your spouse (or your registered domestic partner) bought with separate funds, or acquired in exchange for separate property, during your marriage (or registered domestic partnership). 1040 ez free Property that you and your spouse (or your registered domestic partner) converted from community property to separate property through an agreement valid under state law. 1040 ez free The part of property bought with separate funds, if part was bought with community funds and part with separate funds. 1040 ez free Separate income. 1040 ez free    Generally, income from separate property is the separate income of the spouse (or the registered domestic partner) who owns the property. 1040 ez free    In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. 1040 ez free Table 1. 1040 ez free General Rules — Property and Income: Community or Separate? Community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. 1040 ez free (Includes the part of property bought with community property funds if part was bought with community funds and part with separate funds. 1040 ez free ) That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. 1040 ez free That cannot be identified as separate property. 1040 ez free Separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). 1040 ez free Money earned while domiciled in a noncommunity property state. 1040 ez free Property either of you received as a gift or inherited separately during your marriage (or registered domestic partnership). 1040 ez free Property bought with separate funds, or exchanged for separate property, during your marriage (or registered domestic partnership). 1040 ez free Property that you and your spouse (or your registered domestic partner) agreed to convert from community to separate property through an agreement valid under state law. 1040 ez free The part of property bought with separate funds, if part was bought with community funds and part with separate funds. 1040 ez free Community income 1,2,3 is income from: Community property. 1040 ez free Salaries, wages, or pay for services of you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. 1040 ez free Real estate that is treated as community property under the laws of the state where the property is located. 1040 ez free Separate income 1,2 is income from: Separate property which belongs to the spouse (or registered domestic partner) who owns the property. 1040 ez free 1In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. 1040 ez free 2Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year , later. 1040 ez free In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. 1040 ez free In other states, it is separate income. 1040 ez free 3Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. 1040 ez free See Community Property Laws Disregarded , later. 1040 ez free Identifying Income, Deductions, and Credits If you file separate returns, you and your spouse (or your registered domestic partner) each must attach your Form 8958 to your Form 1040 to identify your community and separate income, deductions, credits, and other return amounts according to the laws of your state. 1040 ez free Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. 1040 ez free See Community Property Laws Disregarded, later. 1040 ez free Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year, later. 1040 ez free In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. 1040 ez free In other states, it is separate income. 1040 ez free Income The following is a discussion of the general effect of community property laws on the federal income tax treatment of certain items of income. 1040 ez free Wages, earnings, and profits. 1040 ez free    A spouse's (or your registered domestic partner's) wages, earnings, and net profits from a sole proprietorship are community income and must be evenly split. 1040 ez free Dividends, interest, and rents. 1040 ez free    Dividends, interest, and rents from community property are community income and must be evenly split. 1040 ez free Dividends, interest, and rents from separate property are characterized in accordance with the discussion under Income from separate property , later. 1040 ez free Example. 1040 ez free If you and your spouse (or your registered domestic partner) buy a bond that is considered community property under your state laws, half the bond interest belongs to you and half belongs to your spouse. 1040 ez free You each must show the bond interest and the split of that interest on your Form 8958, and report half the interest on your Form 1040. 1040 ez free Attach your Form 8958 to your Form 1040. 1040 ez free Alimony received. 1040 ez free    Alimony or separate maintenance payments made prior to divorce are taxable to the payee spouse only to the extent they exceed 50% (his or her share) of the reportable community income. 1040 ez free This is so because the payee spouse is already required to report half of the community income. 1040 ez free See also Alimony paid , later. 1040 ez free Gains and losses. 1040 ez free    Gains and losses are classified as separate or community depending on how the property is held. 1040 ez free For example, a loss on separate property, such as stock held separately, is a separate loss. 1040 ez free On the other hand, a loss on community property, such as a casualty loss to your home held as community property, is a community loss. 1040 ez free See Publication 544, Sales and Other Dispositions of Assets, for information on gains and losses. 1040 ez free See Publication 547, Casualties, Disasters, and Thefts, for information on losses due to a casualty or theft. 1040 ez free Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). 1040 ez free    There are several kinds of individual retirement arrangements (IRAs). 1040 ez free They are traditional IRAs (including SEP-IRAs), SIMPLE IRAs, and Roth IRAs. 1040 ez free IRAs and ESAs by law are deemed to be separate property. 1040 ez free Therefore, taxable IRA and ESA distributions are separate property, even if the funds in the account would otherwise be community property. 1040 ez free These distributions are wholly taxable to the spouse (or registered domestic partner) whose name is on the account. 1040 ez free That spouse (or registered domestic partner) is also liable for any penalties and additional taxes on the distributions. 1040 ez free Pensions. 1040 ez free    Generally, distributions from pensions will be characterized as community or separate income depending on the respective periods of participation in the pension while married (or during the registered domestic partnership) and domiciled in a community property state or in a noncommunity property state during the total period of participation in the pension. 1040 ez free See the example under Civil service retirement , later. 1040 ez free These rules may vary between states. 1040 ez free Check your state law. 1040 ez free Lump-sum distributions. 1040 ez free    If you were born before January 2, 1936, and receive a lump-sum distribution from a qualified retirement plan, you may be able to choose an optional method of figuring the tax on the distribution. 1040 ez free For the 10-year tax option, you must disregard community property laws. 1040 ez free For more information, see Publication 575, Pension and Annuity Income, and Form 4972, Tax on Lump-Sum Distributions. 1040 ez free Civil service retirement. 1040 ez free    For income tax purposes, community property laws apply to annuities payable under the Civil Service Retirement Act (CSRS) or Federal Employee Retirement System (FERS). 1040 ez free   Whether a civil service annuity is separate or community income depends on your marital status (or your status as a registered domestic partner) and domicile of the employee when the services were performed for which the annuity is paid. 1040 ez free Even if you now live in a noncommunity property state and you receive a civil service annuity, it may be community income if it is based on services you performed while married (or during the registered domestic partnership) and domiciled in a community property state. 1040 ez free   If a civil service annuity is a mixture of community income and separate income, it must be divided between the two kinds of income. 1040 ez free The division is based on the employee's domicile and marital status (or registered domestic partnership) in community and noncommunity property states during his or her periods of service. 1040 ez free Example. 1040 ez free Henry Wright retired this year after 30 years of civil service. 1040 ez free He and his wife were domiciled in a community property state during the past 15 years. 1040 ez free Since half the service was performed while the Wrights were married and domiciled in a community property state, half the civil service retirement pay is considered to be community income. 1040 ez free If Mr. 1040 ez free Wright receives $1,000 a month in retirement pay, $500 is considered community income—half ($250) is his income and half ($250) is his wife's. 1040 ez free Military retirement pay. 1040 ez free    State community property laws apply to military retirement pay. 1040 ez free Generally, the pay is either separate or community income based on the marital status and domicile of the couple while the member of the Armed Forces was in active military service. 1040 ez free For example, military retirement pay for services performed during marriage and domicile in a community property state is community income. 1040 ez free   Active military pay earned while married and domiciled in a community property state is also community income. 1040 ez free This income is considered to be received half by the member of the Armed Forces and half by the spouse. 1040 ez free Partnership income. 1040 ez free    If an interest is held in a partnership, and income from the partnership is attributable to the efforts of either spouse (or registered domestic partner), the partnership income is community property. 1040 ez free If it is merely a passive investment in a separate property partnership, the partnership income will be characterized in accordance with the discussion under Income from separate property , later. 1040 ez free Tax-exempt income. 1040 ez free    For spouses, community income exempt from federal tax generally keeps its exempt status for both spouses. 1040 ez free For example, under certain circumstances, income earned outside the United States is tax exempt. 1040 ez free If you earned income and met the conditions that made it exempt, the income is also exempt for your spouse even though he or she may not have met the conditions. 1040 ez free Registered domestic partners should consult the particular exclusion provision to see if the exempt status applies to both. 1040 ez free Income from separate property. 1040 ez free    In some states, income from separate property is separate income. 1040 ez free These states include Arizona, California, Nevada, New Mexico, and Washington. 1040 ez free Other states characterize income from separate property as community income. 1040 ez free These states include Idaho, Louisiana, Texas, and Wisconsin. 1040 ez free Exemptions When you file separate returns, you must claim your own exemption amount for that year. 1040 ez free (See your tax return instructions. 1040 ez free ) You cannot divide the amount allowed as an exemption for a dependent between you and your spouse (or your registered domestic partner). 1040 ez free When community funds provide support for more than one person, each of whom otherwise qualifies as a dependent, you and your spouse (or your registered domestic partner) may divide the number of dependency exemptions as explained in the following example. 1040 ez free Example. 1040 ez free Ron and Diane White have three dependent children and live in Nevada. 1040 ez free If Ron and Diane file separately, only Ron can claim his own exemption, and only Diane can claim her own exemption. 1040 ez free Ron and Diane can agree that one of them will claim the exemption for one, two, or all of their children and the other will claim any remaining exemptions. 1040 ez free They cannot each claim half of the total exemption amount for their three children. 1040 ez free Deductions If you file separate returns, your deductions generally depend on whether the expenses involve community or separate income. 1040 ez free Business and investment expenses. 1040 ez free    If you file separate returns, expenses incurred to earn or produce community business or investment income are generally divided equally between you and your spouse (or your registered domestic partner). 1040 ez free Each of you is entitled to deduct one-half of the expenses on your separate returns. 1040 ez free Expenses incurred by a spouse (or registered domestic partner) to produce separate business or investment income is deductible by the spouse (or the registered domestic partner) who earns the corresponding separate business or investment income. 1040 ez free    Other limits may also apply to business and investment expenses. 1040 ez free For more information, see Publication 535, Business Expenses, and Publication 550, Investment Income and Expenses. 1040 ez free Alimony paid. 1040 ez free    Payments that may otherwise qualify as alimony are not deductible by the payer if they are the recipient spouse's part of community income. 1040 ez free They are deductible as alimony only to the extent they are more than that spouse's part of community income. 1040 ez free Example. 1040 ez free You live in a community property state. 1040 ez free You are separated but the special rules explained later under Spouses living apart all year do not apply. 1040 ez free Under a written agreement, you pay your spouse $12,000 of your $20,000 total yearly community income. 1040 ez free Your spouse receives no other community income. 1040 ez free Under your state law, earnings of a spouse living separately and apart from the other spouse continue as community property. 1040 ez free On your separate returns, each of you must report $10,000 of the total community income. 1040 ez free In addition, your spouse must report $2,000 as alimony received. 1040 ez free You can deduct $2,000 as alimony paid. 1040 ez free IRA deduction. 1040 ez free    Deductions for IRA contributions cannot be split between spouses (or registered domestic partners). 1040 ez free The deduction for each spouse (or each registered domestic partner) is figured separately and without regard to community property laws. 1040 ez free Personal expenses. 1040 ez free   Expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. 1040 ez free If these expenses are paid from community funds, divide the deduction equally between you and your spouse. 1040 ez free Credits, Taxes, and Payments The following is a discussion of the general effect of community property laws on the treatment of certain credits, taxes, and payments on your separate return. 1040 ez free Child tax credit. 1040 ez free    You may be entitled to a child tax credit for each of your qualifying children. 1040 ez free You must provide the name and identification number (usually the social security number) of each qualifying child on your return. 1040 ez free See your tax return instructions for the maximum amount of the credit you can claim for each qualifying child. 1040 ez free Limit on credit. 1040 ez free    The credit is limited if your modified adjusted gross income (modified AGI) is above a certain amount. 1040 ez free The amount at which the limitation (phaseout) begins depends on your filing status. 1040 ez free Generally, your credit is limited to your tax liability unless you have three or more qualifying children. 1040 ez free See your tax return instructions for more information. 1040 ez free Self-employment tax. 1040 ez free    For the effect of community property laws on the income tax treatment of income from a sole proprietorship and partnerships, see Wages, earnings, and profits and Partnership income , earlier. 1040 ez free The following rules only apply to persons married for federal tax purposes. 1040 ez free Registered domestic partners report community income for self-employment tax purposes the same way they do for income tax purposes. 1040 ez free Sole proprietorship. 1040 ez free    With regard to net income from a trade or business (other than a partnership) that is community income, self-employment tax is imposed on the spouse carrying on the trade or business. 1040 ez free Partnerships. 1040 ez free    All of the distributive share of a married partner's income or loss from a partnership trade or business is attributable to the partner for computing any self-employment tax, even if a portion of the partner's distributive share of income or loss is community income or loss that is otherwise attributable to the partner's spouse for income tax purposes. 1040 ez free If both spouses are partners, any self-employment tax is allocated based on their distributive shares. 1040 ez free Federal income tax withheld. 1040 ez free    Report the credit for federal income tax withheld on community wages in the same manner as your wages. 1040 ez free If you and your spouse file separate returns on which each of you reports half the community wages, each of you is entitled to credit for half the income tax withheld on those wages. 1040 ez free Likewise, each registered domestic partner is entitled to credit for half the income tax withheld on those wages. 1040 ez free Estimated tax payments. 1040 ez free    In determining whether you must pay estimated tax, apply the estimated tax rules to your estimated income. 1040 ez free These rules are explained in Publication 505. 1040 ez free   If you think you may owe estimated tax and want to pay the tax separately (registered domestic partners must pay the tax separately), determine whether you must pay it by taking into account: Half the community income and deductions, All of your separate income and deductions, and Your own exemption and any exemptions for dependents that you may claim. 1040 ez free   Whether you and your spouse pay estimated tax jointly or separately will not affect your choice of filing joint or separate income tax returns. 1040 ez free   If you and your spouse paid estimated tax jointly but file separate income tax returns, either of you can claim all of the estimated tax paid, or you may divide it between you in any way that you agree upon. 1040 ez free   If you cannot agree on how to divide it, the estimated tax you can claim equals the total estimated tax paid times the tax shown on your separate return, divided by the total of the tax shown on your return and your spouse's return. 1040 ez free   If you paid your estimated taxes separately, you get credit for only the estimated taxes you paid. 1040 ez free Earned income credit. 1040 ez free    You may be entitled to an earned income credit (EIC). 1040 ez free You cannot claim this credit if your filing status is married filing separately. 1040 ez free   If you are married, but qualify to file as head of household under rules for married taxpayers living apart (see Publication 501, Exemptions, Standard Deduction, and Filing Information), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under community property laws. 1040 ez free That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. 1040 ez free Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. 1040 ez free The same rule applies to registered domestic partners. 1040 ez free    This rule does not apply when determining your adjusted gross income (AGI) for the EIC. 1040 ez free Your AGI includes that part of both your and your spouse's (or your registered domestic partner's) wages that you are required to include in gross income shown on your tax return. 1040 ez free   For more information about the EIC, see Publication 596, Earned Income Credit (EIC). 1040 ez free Overpayments. 1040 ez free    The amount of an overpayment on a joint return is allocated under the community property laws of the state in which you are domiciled. 1040 ez free If, under the laws of your state, community property is subject to premarital or other separate debts of either spouse, the full joint overpayment may be used to offset the obligation. 1040 ez free If, under the laws of your state, community property is not subject to premarital or other separate debts of either spouse, only the portion of the joint overpayment allocated to the spouse liable for the obligation can be used to offset that liability. 1040 ez free The portion allocated to the other spouse can be refunded. 1040 ez free Community Property Laws Disregarded The following discussions are situations where special rules apply to community property and community income for spouses. 1040 ez free These rules do not apply to registered domestic partners. 1040 ez free Certain community income not treated as community income by one spouse. 1040 ez free    Community property laws may not apply to an item of community income that you received but did not treat as community income. 1040 ez free You are responsible for reporting all of that income item if: You treat the item as if only you are entitled to the income, and You do not notify your spouse of the nature and amount of the income by the due date for filing the return (including extensions). 1040 ez free Relief from liability arising from community property law. 1040 ez free    You are not responsible for the tax relating to an item of community income if all the following conditions are met. 1040 ez free You did not file a joint return for the tax year. 1040 ez free You did not include an item of community income in gross income. 1040 ez free The item of community income you did not include is one of the following: Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee. 1040 ez free Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor. 1040 ez free Your spouse's (or former spouse's) distributive share of partnership income. 1040 ez free Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). 1040 ez free Use the appropriate community property law to determine what is separate property. 1040 ez free Any other income that belongs to your spouse (or former spouse) under community property law. 1040 ez free You establish that you did not know of, and had no reason to know of, that community income. 1040 ez free Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. 1040 ez free Requesting relief. 1040 ez free    For information on how and when to request relief from liabilities arising from community property laws, see Community Property Laws in Publication 971, Innocent Spouse Relief. 1040 ez free Equitable relief. 1040 ez free    If you do not qualify for the relief discussed earlier under Relief from liability arising from community property law and are now liable for an underpaid or understated tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief. 1040 ez free To request equitable relief, you must file Form 8857, Request for Innocent Spouse Relief. 1040 ez free Also see Publication 971. 1040 ez free Spousal agreements. 1040 ez free    In some states a married couple may enter into an agreement that affects the status of property or income as community or separate property. 1040 ez free Check your state law to determine how it affects you. 1040 ez free Nonresident alien spouse. 1040 ez free    If you are a U. 1040 ez free S. 1040 ez free citizen or resident alien and you choose to treat your nonresident alien spouse as a U. 1040 ez free S. 1040 ez free resident for tax purposes and you are domiciled in a community property state or country, use the community property rules. 1040 ez free You must file a joint return for the year you make the choice. 1040 ez free You can file separate returns in later years. 1040 ez free For details on making this choice, see Publication 519, U. 1040 ez free S. 1040 ez free Tax Guide for Aliens. 1040 ez free   If you are a U. 1040 ez free S. 1040 ez free citizen or resident alien and do not choose to treat your nonresident alien spouse as a U. 1040 ez free S. 1040 ez free resident for tax purposes, treat your community income as explained next under Spouses living apart all year. 1040 ez free However, you do not have to meet the four conditions discussed there. 1040 ez free Spouses living apart all year. 1040 ez free    If you are married at any time during the calendar year, special rules apply for reporting certain community income. 1040 ez free You must meet all the following conditions for these special rules to apply. 1040 ez free You and your spouse lived apart all year. 1040 ez free You and your spouse did not file a joint return for a tax year beginning or ending in the calendar year. 1040 ez free You and/or your spouse had earned income for the calendar year that is community income. 1040 ez free You and your spouse have not transferred, directly or indirectly, any of the earned income in condition (3) above between yourselves before the end of the year. 1040 ez free Do not take into account transfers satisfying child support obligations or transfers of very small amounts or value. 1040 ez free If all these conditions are met, you and your spouse must report your community income as discussed next. 1040 ez free See also Certain community income not treated as community income by one spouse , earlier. 1040 ez free Earned income. 1040 ez free    Treat earned income that is not trade or business or partnership income as the income of the spouse who performed the services to earn the income. 1040 ez free Earned income is wages, salaries, professional fees, and other pay for personal services. 1040 ez free   Earned income does not include amounts paid by a corporation that are a distribution of earnings and profits rather than a reasonable allowance for personal services rendered. 1040 ez free Trade or business income. 1040 ez free    Treat income and related deductions from a trade or business that is not a partnership as those of the spouse carrying on the trade or business. 1040 ez free Partnership income or loss. 1040 ez free    Treat income or loss from a trade or business carried on by a partnership as the income or loss of the spouse who is the partner. 1040 ez free Separate property income. 1040 ez free    Treat income from the separate property of one spouse as the income of that spouse. 1040 ez free Social security benefits. 1040 ez free    Treat social security and equivalent railroad retirement benefits as the income of the spouse who receives the benefits. 1040 ez free Other income. 1040 ez free    Treat all other community income, such as dividends, interest, rents, royalties, or gains, as provided under your state's community property law. 1040 ez free Example. 1040 ez free George and Sharon were married throughout the year but did not live together at any time during the year. 1040 ez free Both domiciles were in a community property state. 1040 ez free They did not file a joint return or transfer any of their earned income between themselves. 1040 ez free During the year their incomes were as follows:   George Sharon Wages $20,000 $22,000 Consulting business 5,000   Partnership   10,000 Dividends from separate property 1,000 2,000 Interest from community property 500 500 Total $26,500 $34,500 Under the community property law of their state, all the income is considered community income. 1040 ez free (Some states treat income from separate property as separate income—check your state law. 1040 ez free ) Sharon did not take part in George's consulting business. 1040 ez free Ordinarily, on their separate returns they would each report $30,500, half the total community income of $61,000 ($26,500 + $34,500). 1040 ez free But because they meet the four conditions listed earlier under Spouses living apart all year , they must disregard community property law in reporting all their income (except the interest income) from community property. 1040 ez free They each report on their returns only their own earnings and other income, and their share of the interest income from community property. 1040 ez free George reports $26,500 and Sharon reports $34,500. 1040 ez free Other separated spouses. 1040 ez free    If you and your spouse are separated but do not meet the four conditions discussed earlier under Spouses living apart all year , you must treat your income according to the laws of your state. 1040 ez free In some states, income earned after separation but before a decree of divorce continues to be community income. 1040 ez free In other states, it is separate income. 1040 ez free End of the Community The marital community may end in several ways. 1040 ez free When the marital community ends, the community assets (money and property) are divided between the spouses. 1040 ez free Similarly, a registered domestic partnership may end in several ways and the community assets must be divided between the registered domestic partners. 1040 ez free Death of spouse. 1040 ez free    If you own community property and your spouse dies, the total fair market value (FMV) of the community property, including the part that belongs to you, generally becomes the basis of the entire property. 1040 ez free For this rule to apply, at least half the value of the community property interest must be includible in your spouse's gross estate, whether or not the estate must file a return (this rule does not apply to registered domestic partners). 1040 ez free Example. 1040 ez free Bob and Ann owned community property that had a basis of $80,000. 1040 ez free When Bob died, his and Ann's community property had an FMV of $100,000. 1040 ez free One-half of the FMV of their community interest was includible in Bob's estate. 1040 ez free The basis of Ann's half of the property is $50,000 after Bob died (half of the $100,000 FMV). 1040 ez free The basis of the other half to Bob's heirs is also $50,000. 1040 ez free   For more information about the basis of assets, see Publication 551, Basis of Assets. 1040 ez free    The above basis rule does not apply if your spouse died in 2010 and the spouse's executor elected out of the estate tax, in which case section 1022 will apply. 1040 ez free See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for additional information. 1040 ez free Divorce or separation. 1040 ez free    If spouses divorce or separate, the (equal or unequal) division of community property in connection with the divorce or property settlement does not result in a gain or loss. 1040 ez free For registered domestic partners, an unequal division of community property in a property settlement may result in a gain or loss. 1040 ez free For information on the tax consequences of the division of property under a property settlement or divorce decree, see Publication 504. 1040 ez free   Each spouse (or each registered domestic partner) is taxed on half the community income for the part of the year before the community ends. 1040 ez free However, see Spouses living apart all year , earlier. 1040 ez free Any income received after the community ends is separate income. 1040 ez free This separate income is taxable only to the spouse (or the registered domestic partner) to whom it belongs. 1040 ez free   An absolute decree of divorce or annulment ends the marital community in all community property states. 1040 ez free A decree of annulment, even though it holds that no valid marriage ever existed, usually does not nullify community property rights arising during the “marriage. 1040 ez free ” However, you should check your state law for exceptions. 1040 ez free   A decree of legal separation or of separate maintenance may or may not end the marital community. 1040 ez free The court issuing the decree may terminate the marital community and divide the property between the spouses. 1040 ez free   A separation agreement may divide the community property between you and your spouse. 1040 ez free It may provide that this property, along with future earnings and property acquired, will be separate property. 1040 ez free This agreement may end the community. 1040 ez free   In some states, the marital community ends when the spouses permanently separate, even if there is no formal agreement. 1040 ez free Check your state law. 1040 ez free   If you are a registered domestic partner, you should check your state law to determine when the community ends. 1040 ez free Preparing a Federal Income Tax Return The following discussion does not apply to spouses who meet the conditions under Spouses living apart all year , discussed earlier. 1040 ez free Those spouses must report their community income as explained in that discussion. 1040 ez free Joint Return Versus Separate Returns Ordinarily, filing a joint return will give you a greater tax advantage than filing a separate return. 1040 ez free But in some cases, your combined income tax on separate returns may be less than it would be on a joint return. 1040 ez free This discussion concerning joint versus separate returns does not apply to registered domestic partners. 1040 ez free The following rules apply if your filing status is married filing separately. 1040 ez free You should itemize deductions if your spouse itemizes deductions, because you cannot claim the standard deduction. 1040 ez free You cannot take the credit for child and dependent care expenses in most instances. 1040 ez free You cannot take the earned income credit. 1040 ez free You cannot exclude any interest income from qualified U. 1040 ez free S. 1040 ez free savings bonds that you used for higher education expenses. 1040 ez free You cannot take the credit for the elderly or the disabled unless you lived apart from your spouse all year. 1040 ez free You may have to include in income more of any social security benefits (including any equivalent railroad retirement benefits) you received during the year than you would on a joint return. 1040 ez free You cannot deduct interest paid on a qualified student loan. 1040 ez free You cannot take the education credits. 1040 ez free You may have a smaller child tax credit than you would on a joint return. 1040 ez free You cannot take the exclusion or credit for adoption expenses in most instances. 1040 ez free Figure your tax both on a joint return and on separate returns under the community property laws of your state. 1040 ez free You can then compare the tax figured under both methods and use the one that results in less tax. 1040 ez free Separate Return Preparation If you file separate returns, you and your spouse must each report half of your combined community income and deductions in addition to your separate income and deductions. 1040 ez free Each of you must complete and attach Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. 1040 ez free On the appropriate lines of your separate Form 1040, list only your share of the income and deductions on the appropriate lines of your separate tax returns (wages, interest, dividends, etc. 1040 ez free ). 1040 ez free The same reporting rule applies to registered domestic partners. 1040 ez free For a discussion of the effect of community property laws on certain items of income, deductions, credits, and other return amounts, see Identifying Income, Deductions, and Credits , earlier. 1040 ez free Attach your Form 8958 to your separate return showing how you figured the income, deductions, and federal income tax withheld that each of you reported. 1040 ez free Form 8958 is used for married spouses in community property states who choose to file married filing separately. 1040 ez free Form 8958 is also used for registered domestic partners who are domiciled in Nevada, Washington, or California. 1040 ez free A registered domestic partner in Nevada, Washington, or California must follow state community property laws and report half the combined community income of the individual and his or her registered domestic partner. 1040 ez free Extension of time to file. 1040 ez free    An extension of time for filing your separate return does not extend the time for filing your spouse's (or your registered domestic partner's) separate return. 1040 ez free If you and your spouse file a joint return, you cannot file separate returns after the due date for filing either separate return has passed. 1040 ez free How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 1040 ez free Free help with your tax return. 1040 ez free    You can get free help preparing your return nationwide from IRS-certified volunteers. 1040 ez free The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 1040 ez free The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040 ez free Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040 ez free In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 1040 ez free To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 1040 ez free gov, download the IRS2Go app, or call 1-800-906-9887. 1040 ez free   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040 ez free To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040 ez free aarp. 1040 ez free org/money/taxaide or call 1-888-227-7669. 1040 ez free For more information on these programs, go to IRS. 1040 ez free gov and enter “VITA” in the search box. 1040 ez free Internet. 1040 ez free    IRS. 1040 ez free gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 1040 ez free Download the free IRS2Go app from the iTunes app store or from Google Play. 1040 ez free Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 1040 ez free Check the status of your 2013 refund with the Where's My Refund? application on IRS. 1040 ez free gov or download the IRS2Go app and select the Refund Status option. 1040 ez free The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040 ez free Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 1040 ez free You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040 ez free The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040 ez free Use the Interactive Tax Assistant (ITA) to research your tax questions. 1040 ez free No need to wait on the phone or stand in line. 1040 ez free The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 1040 ez free When you reach the response screen, you can print the entire interview and the final response for your records. 1040 ez free New subject areas are added on a regular basis. 1040 ez free  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 1040 ez free gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 1040 ez free You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 1040 ez free The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 1040 ez free When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 1040 ez free Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 1040 ez free You can also ask the IRS to mail a return or an account transcript to you. 1040 ez free Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 1040 ez free gov or by calling 1-800-908-9946. 1040 ez free Tax return and tax account transcripts are generally available for the current year and the past three years. 1040 ez free Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 1040 ez free Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 1040 ez free If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 1040 ez free Check the status of your amended return using Where's My Amended Return? Go to IRS. 1040 ez free gov and enter Where's My Amended Return? in the search box. 1040 ez free You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040 ez free It can take up to 3 weeks from the date you mailed it to show up in our system. 1040 ez free Make a payment using one of several safe and convenient electronic payment options available on IRS. 1040 ez free gov. 1040 ez free Select the Payment tab on the front page of IRS. 1040 ez free gov for more information. 1040 ez free Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 1040 ez free Figure your income tax withholding with the IRS Withholding Calculator on IRS. 1040 ez free gov. 1040 ez free Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 1040 ez free Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 1040 ez free gov. 1040 ez free Request an Electronic Filing PIN by going to IRS. 1040 ez free gov and entering Electronic Filing PIN in the search box. 1040 ez free Download forms, instructions and publications, including accessible versions for people with disabilities. 1040 ez free Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 1040 ez free gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 1040 ez free An employee can answer questions about your tax account or help you set up a payment plan. 1040 ez free Before you visit, check the Office Locator on IRS. 1040 ez free gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 1040 ez free If you have a special need, such as a disability, you can request an appointment. 1040 ez free Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 1040 ez free Apply for an Employer Identification Number (EIN). 1040 ez free Go to IRS. 1040 ez free gov and enter Apply for an EIN in the search box. 1040 ez free Read the Internal Revenue Code, regulations, or other official guidance. 1040 ez free Read Internal Revenue Bulletins. 1040 ez free Sign up to receive local and national tax news and more by email. 1040 ez free Just click on “subscriptions” above the search box on IRS. 1040 ez free gov and choose from a variety of options. 1040 ez free    Phone. 1040 ez free You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 1040 ez free Download the free IRS2Go app from the iTunes app store or from Google Play. 1040 ez free Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 1040 ez free gov, or download the IRS2Go app. 1040 ez free Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 1040 ez free The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040 ez free Most VITA and TCE sites offer free electronic filing. 1040 ez free Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 1040 ez free Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 1040 ez free Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 1040 ez free If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 1040 ez free The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040 ez free Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040 ez free Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 1040 ez free The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040 ez free Note, the above information is for our automated hotline. 1040 ez free Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 1040 ez free Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 1040 ez free You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040 ez free It can take up to 3 weeks from the date you mailed it to show up in our system. 1040 ez free Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 1040 ez free You should receive your order within 10 business days. 1040 ez free Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 1040 ez free If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 1040 ez free Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 1040 ez free The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 1040 ez free These individuals can also contact the IRS through relay services such as the Federal Relay Service. 1040 ez free    Walk-in. 1040 ez free You can find a selection of forms, publications and services — in-person. 1040 ez free Products. 1040 ez free You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040 ez free Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040 ez free Services. 1040 ez free You can walk in to your local TAC for face-to-face tax help. 1040 ez free An employee can answer questions about your tax account or help you set up a payment plan. 1040 ez free Before visiting, use the Office Locator tool on IRS. 1040 ez free gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 1040 ez free    Mail. 1040 ez free You can send your order for forms, instructions, and publications to the address below. 1040 ez free You should receive a response within 10 business days after your request is received. 1040 ez free Internal Revenue Service 1201 N. 1040 ez free Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. 1040 ez free The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040 ez free Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 1040 ez free   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 1040 ez free We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 1040 ez free You face (or your business is facing) an immediate threat of adverse action. 1040 ez free You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 1040 ez free   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 1040 ez free Here's why we can help: TAS is an independent organization within the IRS. 1040 ez free Our advocates know how to work with the IRS. 1040 ez free Our services are free and tailored to meet your needs. 1040 ez free We have offices in every state, the District of Columbia, and Puerto Rico. 1040 ez free   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. 1040 ez free irs. 1040 ez free gov/advocate, or call us toll-free at 1-877-777-4778. 1040 ez free   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 1040 ez free If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. 1040 ez free irs. 1040 ez free gov/sams. 1040 ez free Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 1040 ez free Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 1040 ez free Visit www. 1040 ez free irs. 1040 ez free gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List. 1040 ez free Prev  Up  Next   Home   More Online Publications
Español

Medical advances have resulted in an increased need for nursing home care and assisted living. Most health insurance plans and Medicare severely limit or exclude long-term care. You should consider these costs as you plan for retirement. Here are some questions to ask when considering a separate long-term care insurance policy.

  • What qualifies you for benefits? Some insurers say you must be unable to perform a specific number of the following activities of daily living: eating, walking, getting from bed to a chair, dressing, bathing, using a toilet and remaining continent.
  • What type of care is covered? Does the policy cover nursing home care? What about coverage for assisted living facilities that provide less client care than a nursing home? If you want to stay in your home, will it pay for care provided by visiting nurses and therapists? What about help with food preparation and housecleaning?
  • What will the benefit amount be? Most plans are written to provide a specific dollar benefit per day. The benefit for home care is usually about half the nursing-home benefit. But some policies pay the same for both forms of care. Other plans pay only for your actual expenses.
  • What is the benefit period? It is possible to get a policy with lifetime benefits but this can be very expensive. Other options for coverage are from one to six years. The average nursing home stay is about 2.5 years.
  • Is the benefit adjusted for inflation? If you buy a policy prior to age 60, you face the risk that a fixed daily benefit will not be enough by the time you need it.
  • Is there a waiting period before benefits begin? A 20 to 100 day period is not unusual.

Other Insurance

  • Travel Insurance. There are four kinds of travel insurance: Travel Cancellation Insurance, Baggage or Personal Effects Coverage, Emergency Medical Coverage and Accidental Death. One helpful website is insuremytrip.com.
  • Identity Theft Insurance. This type of insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports. Some companies now include this as part of their homeowner's insurance policy. Others sell it as a stand-alone policy. Ask your homeowner policy company for information.
  • International Healthcare Insurance. A policy that provides health coverage no matter where you are in the world. The policy term is flexible so you can purchase only for the time you will be out of the country. Contact your current healthcare provider for coverage information.
  • Catastrophic Health Care Insurance. A health plan that only cover certain types of expensive care, like hospitalizations.
  • Liability Insurance. Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person. Search online or ask your personal insurance agent for more information.
  • Umbrella insurance A policy that supplements the insurance you already have for home, auto, and other personal property. can help cover costs that exceed the limits of other policies.

The 1040 Ez Free

1040 ez free 2. 1040 ez free   Withholding Tax Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Income Tax Withholding Statement. 1040 ez free 30% Flat Rate Withholding Social Security and Medicare TaxesGeneral Information Bilateral Social Security (Totalization) Agreements Topics - This chapter discusses: Withholding income tax from the pay of U. 1040 ez free S. 1040 ez free citizens, Withholding tax at a flat rate, and Social security and Medicare taxes. 1040 ez free Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 673 Statement For Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion Provided by Section 911 W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification See chapter 7 for information about getting this publication and these forms. 1040 ez free Income Tax Withholding U. 1040 ez free S. 1040 ez free employers generally must withhold U. 1040 ez free S. 1040 ez free income tax from the pay of U. 1040 ez free S. 1040 ez free citizens working abroad unless the employer is required by foreign law to withhold foreign income tax. 1040 ez free Foreign earned income exclusion. 1040 ez free   Your employer does not have to withhold U. 1040 ez free S. 1040 ez free income taxes from wages you earn abroad if it is reasonable to believe that you will exclude them from income under the foreign earned income exclusion or the foreign housing exclusion. 1040 ez free   Your employer should withhold taxes from any wages you earn for working in the United States. 1040 ez free Statement. 1040 ez free   You can give a statement to your employer indicating that you expect to qualify for the foreign earned income exclusion under either the bona fide residence test or the physical presence test and indicating your estimated housing cost exclusion. 1040 ez free   Form 673 is an acceptable statement. 1040 ez free You can use Form 673 only if you are a U. 1040 ez free S. 1040 ez free citizen. 1040 ez free You do not have to use the form. 1040 ez free You can prepare your own statement. 1040 ez free See a copy of Form 673, later. 1040 ez free   Generally, your employer can stop the withholding once you submit the statement that includes a declaration that the statement is made under penalties of perjury. 1040 ez free However, if your employer has reason to believe that you will not qualify for either the foreign earned income or the foreign housing exclusion, your employer must continue to withhold. 1040 ez free   In determining whether your foreign earned income is more than the limit on either the foreign earned income exclusion or the foreign housing exclusion, if your employer has any information about pay you received from any other source outside the United States, your employer must take that information into account. 1040 ez free Foreign tax credit. 1040 ez free   If you plan to take a foreign tax credit, you may be eligible for additional withholding allowances on Form W-4. 1040 ez free You can take these additional withholding allowances only for foreign tax credits attributable to taxable salary or wage income. 1040 ez free Withholding from pension payments. 1040 ez free   U. 1040 ez free S. 1040 ez free payers of benefits from employer-deferred compensation plans, individual retirement plans, and commercial annuities generally must withhold income tax from payments delivered outside of the United States. 1040 ez free You can choose exemption from withholding if you: Provide the payer of the benefits with a residence address in the United States or a U. 1040 ez free S. 1040 ez free possession, or Certify to the payer that you are not a U. 1040 ez free S. 1040 ez free citizen or resident alien or someone who left the United States to avoid tax. 1040 ez free Check your withholding. 1040 ez free   Before you report U. 1040 ez free S. 1040 ez free income tax withholding on your tax return, you should carefully review all information documents, such as Form W-2, Wage and Tax Statement, and the Form 1099 information returns. 1040 ez free Compare other records, such as final pay records or bank statements, with Form W-2 or Form 1099 to verify the withholding on these forms. 1040 ez free Check your U. 1040 ez free S. 1040 ez free income tax withholding even if you pay someone else to prepare your tax return. 1040 ez free You may be assessed penalties and interest if you claim more than your correct amount of withholding allowances. 1040 ez free This image is too large to be displayed in the current screen. 1040 ez free Please click the link to view the image. 1040 ez free Form 673 30% Flat Rate Withholding Generally, U. 1040 ez free S. 1040 ez free payers of income other than wages, such as dividends and royalties, are required to withhold tax at a flat 30% (or lower treaty) rate on nonwage income paid to nonresident aliens. 1040 ez free If you are a U. 1040 ez free S. 1040 ez free citizen or resident alien and this tax is withheld in error from payments to you because you have a foreign address, you should notify the payer of the income to stop the withholding. 1040 ez free Use Form W-9 to notify the payer. 1040 ez free You can claim the tax withheld in error as a withholding credit on your tax return if the amount is not adjusted by the payer. 1040 ez free Social security benefits paid to residents. 1040 ez free   If you are a lawful permanent resident (green card holder) and a flat 30% tax was withheld in error on your social security benefits, the tax is refundable by the Social Security Administration (SSA) or the IRS. 1040 ez free The SSA will refund the tax withheld if the refund can be processed during the same calendar year in which the tax was withheld. 1040 ez free If the SSA cannot refund the tax withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center at the address listed under Where To File to determine if you are entitled to a refund. 1040 ez free The following information must be submitted with your Form 1040 or Form 1040A. 1040 ez free A copy of Form SSA-1042S, Social Security Benefit Statement. 1040 ez free A copy of your “green card. 1040 ez free ” A signed declaration that includes the following statements. 1040 ez free   “I am a U. 1040 ez free S. 1040 ez free lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 1040 ez free I am filing a U. 1040 ez free S. 1040 ez free income tax return for the taxable year as a resident alien reporting all of my worldwide income. 1040 ez free I have not claimed benefits for the taxable year under an income tax treaty as a nonresident alien. 1040 ez free ” Social Security and Medicare Taxes Social security and Medicare taxes may apply to wages paid to an employee regardless of where the services are performed. 1040 ez free General Information In general, U. 1040 ez free S. 1040 ez free social security and Medicare taxes do not apply to wages for services you perform as an employee outside the United States unless one of the following exceptions applies. 1040 ez free You perform the services on or in connection with an American vessel or aircraft (defined later) and either: You entered into your employment contract within the United States, or The vessel or aircraft touches at a U. 1040 ez free S. 1040 ez free port while you are employed on it. 1040 ez free You are working in one of the countries with which the United States has entered into a bilateral social security agreement (discussed later). 1040 ez free You are working for an American employer (defined later). 1040 ez free You are working for a foreign affiliate (defined later) of an American employer under a voluntary agreement entered into between the American employer and the U. 1040 ez free S. 1040 ez free Treasury Department. 1040 ez free American vessel or aircraft. 1040 ez free   An American vessel is any vessel documented or numbered under the laws of the United States and any other vessel whose crew is employed solely by one or more U. 1040 ez free S. 1040 ez free citizens, residents, or corporations. 1040 ez free An American aircraft is an aircraft registered under the laws of the United States. 1040 ez free American employer. 1040 ez free   An American employer includes any of the following. 1040 ez free The U. 1040 ez free S. 1040 ez free Government or any of its instrumentalities. 1040 ez free An individual who is a resident of the United States. 1040 ez free A partnership of which at least two-thirds of the partners are U. 1040 ez free S. 1040 ez free residents. 1040 ez free A trust of which all the trustees are U. 1040 ez free S. 1040 ez free residents. 1040 ez free A corporation organized under the laws of the United States, any U. 1040 ez free S. 1040 ez free state, or the District of Columbia, Puerto Rico, the U. 1040 ez free S. 1040 ez free Virgin Islands, Guam, or American Samoa. 1040 ez free   An American employer also includes any foreign person with an employee who is performing services in connection with a contract between the U. 1040 ez free S. 1040 ez free government (or any instrumentality thereof) and a member of a domestically controlled group of entities which includes such foreign person. 1040 ez free Foreign affiliate. 1040 ez free   A foreign affiliate of an American employer is any foreign entity in which the American employer has at least a 10% interest, directly or through one or more entities. 1040 ez free For a corporation, the 10% interest must be in its voting stock. 1040 ez free For any other entity, the 10% interest must be in its profits. 1040 ez free   Form 2032, Contract Coverage Under Title II of the Social Security Act, is used by American employers to extend social security coverage to U. 1040 ez free S. 1040 ez free citizens and resident aliens working abroad for foreign affiliates of American employers. 1040 ez free Once you enter into an agreement, coverage cannot be terminated. 1040 ez free Excludable meals and lodging. 1040 ez free   Social security tax does not apply to the value of meals and lodging provided to you for the convenience of your employer if it is reasonable to believe that you will be able to exclude the value from your income. 1040 ez free Bilateral Social Security (Totalization) Agreements The United States has entered into agreements with some foreign countries to coordinate social security coverage and taxation of workers who are employed in those countries. 1040 ez free These agreements are commonly referred to as totalization agreements and are in effect with the following countries. 1040 ez free Australia Greece Norway Austria Ireland Poland Belgium Italy Portugal Canada Japan Spain Chile Korea, Sweden Czech South Switzerland Republic Luxembourg United Denmark Netherlands Kingdom Finland     France     Germany           Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. 1040 ez free The agreements generally make sure that you pay social security taxes to only one country. 1040 ez free Generally, under these agreements, you will only be subject to social security taxes in the country where you are working. 1040 ez free However, if you are temporarily sent to work in a foreign country and your pay would otherwise be subject to social security taxes in both the United States and that country, you generally can remain covered only by U. 1040 ez free S. 1040 ez free social security. 1040 ez free You can get more information on any specific agreement by contacting: Social Security Administration Office of International Programs P. 1040 ez free O. 1040 ez free Box 17741 Baltimore, MD 21235-7741 If you have access to the Internet, you can get more information at: http://www. 1040 ez free socialsecurity. 1040 ez free gov/international. 1040 ez free Covered by U. 1040 ez free S. 1040 ez free only. 1040 ez free   If your pay in a foreign country is subject only to U. 1040 ez free S. 1040 ez free social security tax and is exempt from foreign social security tax, your employer should get a certificate of coverage from the Office of International Programs. 1040 ez free Covered by foreign country only. 1040 ez free   If you are permanently working in a foreign country with which the United States has a social security agreement and, under the agreement, your pay is exempt from U. 1040 ez free S. 1040 ez free social security tax, you or your employer should get a statement from the authorized official or agency of the foreign country verifying that your pay is subject to social security coverage in that country. 1040 ez free   If the authorities of the foreign country will not issue such a statement, either you or your employer should get a statement from the U. 1040 ez free S. 1040 ez free Social Security Administration, Office of International Programs, at the address listed earlier. 1040 ez free The statement should indicate that your wages are not covered by the U. 1040 ez free S. 1040 ez free social security system. 1040 ez free   This statement should be kept by your employer because it establishes that your pay is exempt from U. 1040 ez free S. 1040 ez free social security tax. 1040 ez free   Only wages paid on or after the effective date of the totalization agreement can be exempt from U. 1040 ez free S. 1040 ez free social security tax. 1040 ez free Prev  Up  Next   Home   More Online Publications