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1040ez Taxes

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1040ez Taxes

1040ez taxes 3. 1040ez taxes   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. 1040ez taxes Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. 1040ez taxes An exclusion from gross income is generally income you receive that is not included in your U. 1040ez taxes S. 1040ez taxes income and is not subject to U. 1040ez taxes S. 1040ez taxes tax. 1040ez taxes This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. 1040ez taxes Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. 1040ez taxes Useful Items - You may want to see: Publication 54 Tax Guide for U. 1040ez taxes S. 1040ez taxes Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. 1040ez taxes Resident Aliens Resident aliens may be able to exclude the following items from their gross income. 1040ez taxes Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. 1040ez taxes The exclusion is $97,600 in 2013. 1040ez taxes In addition, you may be able to exclude or deduct certain foreign housing amounts. 1040ez taxes You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. 1040ez taxes For more information, see Publication 54. 1040ez taxes Foreign country. 1040ez taxes    A foreign country is any territory under the sovereignty of a government other than that of the United States. 1040ez taxes   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. 1040ez taxes It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. 1040ez taxes   The term “foreign country” does not include U. 1040ez taxes S. 1040ez taxes possessions or territories. 1040ez taxes It does not include the Antarctic region. 1040ez taxes Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. 1040ez taxes Interest Income Interest income that is not connected with a U. 1040ez taxes S. 1040ez taxes trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. 1040ez taxes State and local government obligations. 1040ez taxes   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. 1040ez taxes S. 1040ez taxes possession, generally is not included in income. 1040ez taxes However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. 1040ez taxes Portfolio interest. 1040ez taxes   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. 1040ez taxes To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. 1040ez taxes Note. 1040ez taxes For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. 1040ez taxes Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. 1040ez taxes Obligations in registered form. 1040ez taxes   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. 1040ez taxes   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. 1040ez taxes   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. 1040ez taxes For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. 1040ez taxes Obligations not in registered form. 1040ez taxes    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. 1040ez taxes A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. 1040ez taxes   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. 1040ez taxes In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. 1040ez taxes Interest that does not qualify as portfolio interest. 1040ez taxes   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. 1040ez taxes You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. 1040ez taxes Contingent interest. 1040ez taxes   Portfolio interest does not include contingent interest. 1040ez taxes Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. 1040ez taxes For exceptions, see Internal Revenue Code section 871(h)(4)(C). 1040ez taxes Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. 1040ez taxes Related persons. 1040ez taxes   Related persons include the following. 1040ez taxes Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. 1040ez taxes ), and lineal descendants (children, grandchildren, etc. 1040ez taxes ). 1040ez taxes Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. 1040ez taxes Certain corporations, partnerships, and other entities. 1040ez taxes For details, see Nondeductible Loss in chapter 2 of Publication 544. 1040ez taxes Exception for existing debt. 1040ez taxes   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. 1040ez taxes Dividend Income The following dividend income is exempt from the 30% tax. 1040ez taxes Certain dividends paid by foreign corporations. 1040ez taxes   There is no 30% tax on U. 1040ez taxes S. 1040ez taxes source dividends you receive from a foreign corporation. 1040ez taxes See Second exception under Dividends in chapter 2 for how to figure the amount of U. 1040ez taxes S. 1040ez taxes source dividends. 1040ez taxes Certain interest-related dividends. 1040ez taxes   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. 1040ez taxes The mutual fund will designate in writing which dividends are interest-related dividends. 1040ez taxes Certain short-term capital gain dividends. 1040ez taxes   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. 1040ez taxes The mutual fund will designate in writing which dividends are short-term capital gain dividends. 1040ez taxes This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. 1040ez taxes Services Performed for Foreign Employer If you were paid by a foreign employer, your U. 1040ez taxes S. 1040ez taxes source income may be exempt from U. 1040ez taxes S. 1040ez taxes tax, but only if you meet one of the situations discussed next. 1040ez taxes Employees of foreign persons, organizations, or offices. 1040ez taxes   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. 1040ez taxes S. 1040ez taxes sources and is tax exempt if you meet all three of the following conditions. 1040ez taxes You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. 1040ez taxes S. 1040ez taxes corporation, a U. 1040ez taxes S. 1040ez taxes partnership, or a U. 1040ez taxes S. 1040ez taxes citizen or resident. 1040ez taxes You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. 1040ez taxes Your pay for these services is not more than $3,000. 1040ez taxes If you do not meet all three conditions, your income from personal services performed in the United States is U. 1040ez taxes S. 1040ez taxes source income and is taxed according to the rules in chapter 4. 1040ez taxes   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. 1040ez taxes To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. 1040ez taxes If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. 1040ez taxes   A day means a calendar day during any part of which you are physically present in the United States. 1040ez taxes Example 1. 1040ez taxes During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. 1040ez taxes S. 1040ez taxes partnership. 1040ez taxes Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. 1040ez taxes That office paid him a total gross salary of $2,800 for those services. 1040ez taxes During 2013, he was not engaged in a trade or business in the United States. 1040ez taxes The salary is not considered U. 1040ez taxes S. 1040ez taxes source income and is exempt from U. 1040ez taxes S. 1040ez taxes tax. 1040ez taxes Example 2. 1040ez taxes The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. 1040ez taxes He received $2,875 in 2013, and $1,625 in 2014. 1040ez taxes During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. 1040ez taxes Henry's salary is U. 1040ez taxes S. 1040ez taxes source income and is taxed under the rules in chapter 4. 1040ez taxes Crew members. 1040ez taxes   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. 1040ez taxes S. 1040ez taxes possession is not U. 1040ez taxes S. 1040ez taxes source income and is exempt from U. 1040ez taxes S. 1040ez taxes tax. 1040ez taxes This exemption does not apply to compensation for services performed on foreign aircraft. 1040ez taxes Students and exchange visitors. 1040ez taxes   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. 1040ez taxes   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. 1040ez taxes It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. 1040ez taxes   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. 1040ez taxes Foreign employer. 1040ez taxes   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. 1040ez taxes S. 1040ez taxes possession by a U. 1040ez taxes S. 1040ez taxes corporation, a U. 1040ez taxes S. 1040ez taxes partnership, or an individual who is a U. 1040ez taxes S. 1040ez taxes citizen or resident. 1040ez taxes   The term “foreign employer” does not include a foreign government. 1040ez taxes Pay from a foreign government that is exempt from U. 1040ez taxes S. 1040ez taxes income tax is discussed in chapter 10. 1040ez taxes Income from certain annuities. 1040ez taxes   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. 1040ez taxes S. 1040ez taxes income tax if you meet both of the following conditions. 1040ez taxes You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . 1040ez taxes At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. 1040ez taxes S. 1040ez taxes citizens or residents. 1040ez taxes   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. 1040ez taxes S. 1040ez taxes citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. 1040ez taxes   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. 1040ez taxes Income affected by treaties. 1040ez taxes   Income of any kind that is exempt from U. 1040ez taxes S. 1040ez taxes tax under a treaty to which the United States is a party is excluded from your gross income. 1040ez taxes Income on which the tax is only limited by treaty, however, is included in gross income. 1040ez taxes See chapter 9. 1040ez taxes Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. 1040ez taxes Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. 1040ez taxes If you are married and file a joint return, you may be able to exclude up to $500,000. 1040ez taxes For information on the requirements for this exclusion, see Publication 523. 1040ez taxes This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. 1040ez taxes Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. 1040ez taxes The rules discussed here apply to both resident and nonresident aliens. 1040ez taxes If a nonresident alien receives a grant that is not from U. 1040ez taxes S. 1040ez taxes sources, it is not subject to U. 1040ez taxes S. 1040ez taxes tax. 1040ez taxes See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. 1040ez taxes S. 1040ez taxes sources. 1040ez taxes A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. 1040ez taxes Candidate for a degree. 1040ez taxes   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. 1040ez taxes Eligible educational institution. 1040ez taxes   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. 1040ez taxes Qualified education expenses. 1040ez taxes   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. 1040ez taxes These items must be required of all students in your course of instruction. 1040ez taxes However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. 1040ez taxes Expenses that do not qualify. 1040ez taxes   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. 1040ez taxes This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. 1040ez taxes Scholarship or fellowship amounts used to pay these costs are taxable. 1040ez taxes Amounts used to pay expenses that do not qualify. 1040ez taxes   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. 1040ez taxes Payment for services. 1040ez taxes   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. 1040ez taxes This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. 1040ez taxes Example. 1040ez taxes On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. 1040ez taxes As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. 1040ez taxes Of the $2,500 scholarship, $1,000 represents payment for her services. 1040ez taxes Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. 1040ez taxes Prev  Up  Next   Home   More Online Publications
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IRS Combats Identity Theft and Refund Fraud on Many Fronts

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ID Theft: IRS Efforts on Identity Theft

FS-2014-1, January 2014

Stopping identity theft and refund fraud is a top priority for the Internal Revenue Service (IRS). The agency’s work on identity theft and refund fraud continues to grow, touching nearly every part of the organization. For the 2014 filing season, the IRS has expanded these efforts to better protect taxpayers and help victims.

The IRS assigned more than 3,000 IRS employees to work on identity theft-related issues. IRS employees are working to prevent refund fraud, investigate identity theft-related crimes and help taxpayers who have been victimized by identity thieves. In addition, the IRS provides training to more than 35,000 employees who work with taxpayers to recognize identity theft indicators and help people victimized by identity theft.

Refund Fraud Detection and Prevention

The IRS continues to increase its efforts against refund fraud, which includes identity theft. As a result of these aggressive efforts to combat identity theft from 2011 through November 2013, the IRS has stopped 14.6 million suspicious returns, and protected over $50 billion in fraudulent refunds.

For 2014, the IRS will continue to increase both the number and efficiency of the identity theft filters that are used to identify potentially fraudulent returns due to identity theft prior to the processing of the return and release of any refund. 

In Fiscal Year 2013, the IRS initiated 1,492 identity theft related criminal investigations, an increase of 66 percent over investigations initiated in FY 2012. Indictments and sentencing doubled in FY 2013 and the average prison term was more than three years (38 months) – the longest sentenced being 26 years.   

Increasing Efforts to Help Victims

The IRS understands that identity theft is a frustrating, complex process for victims. While identity thieves steal information from sources outside the tax system, the IRS is often the first to inform a victim that identity theft has occurred. The IRS is working hard to resolve identity theft cases as quickly as possible.  We are also developing programs and information to protect the taxpayer from future misuse of their personal information impacting their tax administration and minimize the impact outside of IRS.

While the IRS has made considerable progress in this area, more work remains. Fighting identity theft is an ongoing battle as identity thieves continue to create new ways of stealing personal information and using it for their gain. Identity theft cases are among the most complex handled by the IRS. The IRS is continually reviewing processes and policies to minimize the incidence of identity theft and to help those who find themselves victimized. Among the steps underway to help victims:

  • IP PIN expansion. The IRS Identity Protection PIN (IP PIN) is a unique six digit number that is assigned annually to victims of identity theft for use when filing their federal tax return that shows that a particular taxpayer is the rightful filer of the return. For the upcoming tax year 2013 filing season, the IRS expects to provide more than 1.2 million taxpayers with an IP PIN. For the second tax season in a row, the number of IP PINs has nearly doubled from the year before. The IP PIN will allow these individuals to avoid delays in filing returns and receiving refunds.
  • IP PIN Changes:
    • If an IP PIN is assigned to a taxpayer for their 2013 return, the IP PIN must be used on any delinquent 2011 and 2012 returns filed during the 2014 calendar year.
    • IRS is exploring the use of an online process through IRS.gov that will allow taxpayers who have an IP PIN requirement and lose their IP PIN to create an account and receive their original IP PIN online. 
  • Victim case resolution:  The IRS continues to dedicate more and more employees to resolution of victim cases. These are extremely complex cases to resolve, frequently touching on multiple issues and multiple tax years. Cases of resolving identity theft can be complicated by the thieves themselves contacting the IRS. The IRS is working hard to streamline its internal process, but much more work remains. A typical case can take 180 days to resolve, and the IRS is working to reduce that time period.
  • Service options. The IRS is providing information in several ways ranging from a special section on IRS.gov devoted to identity theft to a special phone number available for victims to obtain assistance and resource information for resolving tax issues. The IRS Identity Protection Specialized Unit is available at 1-800-908-4490.
  • More information is available on IRS.gov, including the Taxpayer Guide to Identity Theft.

IRS Criminal Investigation

In FY 2013, the IRS initiated 1,492 identity theft related criminal investigations, an increase of 66% over investigations initiated in FY 2012. Indictments and sentencing doubled in FY 2013 and the average prison term was more than three years (38 months).

In January 2013, the IRS conducted a coordinated and highly successful identity theft enforcement sweep.  The coast-to-coast effort against identity theft suspects led to 734 enforcement actions, including 298 indictments, informations, complaints and arrests.

The Law Enforcement Assistance Program, formerly known as the Identity Theft Pilot Disclosure Program, was expanded nationwide.  This program provides for the disclosure of federal tax return information associated with the accounts of known and suspected victims of identity theft with the express written consent of those victims.  There are currently more than 300 state/local law enforcement agencies from 35 states participating.  For FY 2013, more than 2,400 requests were received from state and local law enforcement agencies.

The Identity Theft Clearinghouse (ITC) continues to develop and refer identity theft refund fraud schemes to Criminal Investigation (CI) Field Offices for investigation.  For FY 2013, the ITC received over 1,400 identity theft related leads.  Those leads related to more than 391,000 tax returns claiming in excess of $1.3 billion dollars in potentially fraudulent federal income tax refunds. 

CI continues to be the lead agency or actively involved in more than 30 multi-regional task forces or working groups including state/local and federal law enforcement agencies solely focusing on identity theft.     

For more information, see the special identity theft section on IRS.gov and IRS Fact Sheet 2014-2, Tips for Taxpayers and Victims about Identity Theft and Tax Returns.

Page Last Reviewed or Updated: 07-Jan-2014

The 1040ez Taxes

1040ez taxes Publication 517 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. 1040ez taxes Tax questions. 1040ez taxes Useful Items - You may want to see: What's New SE tax rate. 1040ez taxes  For 2013 and 2014, the Old Age, Survivors, and Disability Insurance (OASDI) portion of the SE tax is 12. 1040ez taxes 4%. 1040ez taxes The Medicare (HI) portion of the SE tax remains 2. 1040ez taxes 9%. 1040ez taxes As a result, the SE tax rate returns to 15. 1040ez taxes 3%. 1040ez taxes For more information, see the Instructions for Schedule SE (Form 1040). 1040ez taxes Earnings subject to social security. 1040ez taxes  For 2013, the maximum wages and self-employment income subject to social security tax increases from $110,100 to $113,700. 1040ez taxes For 2014, the maximum wages and self-employment income subject to social security tax is $117,000. 1040ez taxes Additional Medicare Tax. 1040ez taxes  Beginning in 2013, a 0. 1040ez taxes 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. 1040ez taxes For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. 1040ez taxes Modified AGI limit for traditional IRA contributions increased. 1040ez taxes  For 2013, you may be able to take an IRA deduction if you were covered by a retirement plan at work and your modified AGI is: Less than $115,000 if married filing jointly or qualifying widow(er), Less than $69,000 if single or head of household, or Less than $10,000 if married filing separately. 1040ez taxes If you file a joint return and either you or your spouse was not covered by a retirement plan at work, you may be able to take an IRA deduction if your modified AGI is less than $188,000. 1040ez taxes Modified AGI limit for Roth IRA contributions increased. 1040ez taxes  For 2013, you may be able to contribute to your Roth IRA if your modified AGI is: Less than $188,000 if married filing jointly or qualifying widow(er), Less than $127,000 if single, head of household, or married filing separately and you did not live with your spouse at any time during the year, or Less than $10,000 if married filing separately and you lived with your spouse at any time during the year. 1040ez taxes Earned income credit (EIC). 1040ez taxes  For 2013, the maximum amount of income you can earn and still claim the EIC has increased. 1040ez taxes You may be able to take the EIC if you earned less than $46,227 ($51,567 for married filing jointly) and you have three or more qualifying children; $43,038 ($48,378 for married filing jointly) and you have two qualifying children; $37,870 ($43,210 for married filing jointly) and you have one qualifying child; and $14,340 ($19,680 for married filing jointly) and you do not have any qualifying children. 1040ez taxes Reminders Future developments. 1040ez taxes . 1040ez taxes   For the latest information about developments related to Publication 517, such as legislation enacted after it was published, go to www. 1040ez taxes irs. 1040ez taxes gov/pub517. 1040ez taxes Photographs of missing children. 1040ez taxes  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. 1040ez taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040ez taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040ez taxes Introduction Three federal taxes are paid on wages and self-employment income—income tax, social security tax, and Medicare tax. 1040ez taxes Social security and Medicare taxes are collected under one of two systems. 1040ez taxes Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. 1040ez taxes Under the Federal Insurance Contributions Act (FICA), the employee and the employer each pay half of the social security and Medicare taxes. 1040ez taxes No earnings are subject to both systems. 1040ez taxes Table 1. 1040ez taxes Are Your Ministerial Earnings* Covered Under FICA or SECA? Find the class to which you belong in the left column and read across the table to find if you are covered under FICA or SECA. 1040ez taxes Do not rely on this table alone. 1040ez taxes Also read the discussion for the class in the following pages. 1040ez taxes Class Covered under FICA? Covered under SECA? Minister NO. 1040ez taxes Your ministerial earnings are exempt. 1040ez taxes YES, if you do not have an approved exemption from the IRS. 1040ez taxes   NO, if you have an approved exemption. 1040ez taxes Member of a religious order who has not taken a vow of poverty NO. 1040ez taxes Your ministerial earnings are exempt. 1040ez taxes YES, if you do not have an approved exemption from the IRS. 1040ez taxes   NO, if you have an approved exemption. 1040ez taxes Member of a religious order who has taken a vow of poverty YES, if: Your order elected FICA coverage for its members, or You worked outside the order and the work was not required by, or done on behalf of, the order. 1040ez taxes   NO, if neither of the above applies. 1040ez taxes NO. 1040ez taxes Your ministerial earnings are exempt. 1040ez taxes Christian Science practitioner or reader NO. 1040ez taxes Your ministerial earnings are exempt. 1040ez taxes YES, if you do not have an approved exemption from the IRS. 1040ez taxes   NO, if you have an approved exemption. 1040ez taxes Religious worker (church employee) YES, if your employer did not elect to exclude you. 1040ez taxes    NO, if your employer elected to exclude you. 1040ez taxes YES, if your employer elected to exclude you from FICA. 1040ez taxes   NO, if you are covered under FICA. 1040ez taxes Member of a recognized religious sect YES, if you are an employee and do not have an approved exemption from the IRS. 1040ez taxes    NO, if you have an approved exemption. 1040ez taxes YES, if you are self-employed and do not have an approved exemption from the IRS. 1040ez taxes   NO, if you have an approved exemption. 1040ez taxes * Ministerial earnings are the self-employment earnings that result from ministerial services, defined and discussed later. 1040ez taxes In addition, all wages and self-employment income that are subject to Medicare tax are subject to a 0. 1040ez taxes 9% Additional Medicare Tax if they are paid in excess of the applicable threshold for an individual's filing status. 1040ez taxes Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. 1040ez taxes Medicare wages and self-employment income are combined to determine if income exceeds the threshold. 1040ez taxes A self-employment loss is not considered for purposes of this tax. 1040ez taxes RRTA compensation is separately compared to the threshold. 1040ez taxes There is no employer match for Additional Medicare Tax. 1040ez taxes For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. 1040ez taxes This publication contains information for the following classes of taxpayers. 1040ez taxes Ministers. 1040ez taxes Members of a religious order. 1040ez taxes Christian Science practitioners and readers. 1040ez taxes Religious workers (church employees). 1040ez taxes Members of a recognized religious sect. 1040ez taxes Note. 1040ez taxes Unless otherwise noted, in this publication references to members of the clergy include ministers, members of a religious order (but not members of a recognized religious sect), and Christian Science practitioners and readers. 1040ez taxes This publication covers the following topics about the collection of social security and Medicare taxes from members of the clergy, religious workers, and members of a recognized religious sect. 1040ez taxes Which earnings are taxed under FICA and which under SECA. 1040ez taxes See Table 1 above. 1040ez taxes How a member of the clergy can apply for an exemption from self-employment tax. 1040ez taxes How a member of a recognized religious sect can apply for an exemption from both self-employment tax and FICA taxes. 1040ez taxes How a member of the clergy or religious worker figures net earnings from self-employment. 1040ez taxes This publication also covers certain income tax rules of interest to ministers and members of a religious order. 1040ez taxes A Comprehensive Example shows filled-in forms for a minister who has income taxed under SECA, other income taxed under FICA, and income tax reporting of items specific to a minister. 1040ez taxes In the back of Publication 517 is a set of worksheets that you can use to figure the amount of your taxable ministerial income and allowable deductions. 1040ez taxes You will find these worksheets right after the Comprehensive Example . 1040ez taxes Note. 1040ez taxes In this publication, the term “church” is generally used in its generic sense and not in reference to any particular religion. 1040ez taxes Comments and suggestions. 1040ez taxes   We welcome your comments about this publication and your suggestions for future editions. 1040ez taxes   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040ez taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040ez taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040ez taxes   You can send your comments from www. 1040ez taxes irs. 1040ez taxes gov/formspubs/. 1040ez taxes Click on “More Information” and then on “Give us feedback”. 1040ez taxes   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040ez taxes Ordering forms and publications. 1040ez taxes   Visit www. 1040ez taxes irs. 1040ez taxes gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040ez taxes Internal Revenue Service 1201 N. 1040ez taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040ez taxes   If you have a tax question, check the information available on IRS. 1040ez taxes gov or call 1-800-829-1040. 1040ez taxes We cannot answer tax questions sent to either of the above addresses. 1040ez taxes Useful Items - You may want to see: Publication 54 Tax Guide for U. 1040ez taxes S. 1040ez taxes Citizens and Resident Aliens Abroad 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 590 Individual Retirement Arrangements (IRAs) 596 Earned Income Credit (EIC) Form (and Instructions) SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding SS-16 Certificate of Election of Coverage Under the Federal Insurance Contributions Act Schedule C (Form 1040) Profit or Loss From Business (Sole Proprietorship) Schedule C-EZ (Form 1040) Net Profit From Business (Sole Proprietorship) Schedule SE (Form 1040) Self-Employment Tax 1040-ES Estimated Tax for Individuals 1040X Amended U. 1040ez taxes S. 1040ez taxes Individual Income Tax Return 4029 Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits 4361 Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security and Medicare Taxes 8959 Additional Medicare Tax Ordering publications and forms. 1040ez taxes   See How To Get Tax Help , near the end of this publication, for information about getting these publications and forms. 1040ez taxes Prev  Up  Next   Home   More Online Publications