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1040v Tax Form

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1040v Tax Form

1040v tax form Publication 561 - Main Contents Table of Contents What Is Fair Market Value (FMV)?Factors. 1040v tax form Stock. 1040v tax form Options. 1040v tax form Determining Fair Market Value Problems in Determining Fair Market Value Valuation of Various Kinds of PropertyHousehold Goods Used Clothing Jewelry and Gems Paintings, Antiques, and Other Objects of Art Collections Cars, Boats, and Aircraft Inventory Patents Stocks and Bonds Real Estate Interest in a Business Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Certain Life Insurance and Annuity Contracts Partial Interest in Property Not in Trust AppraisalsDeductions of More Than $5,000 Deductions of More Than $500,000 Qualified Appraisal Form 8283 Internal Revenue Service Review of Appraisals Penalty How To Get Tax HelpLow income tax clinics (LITCs). 1040v tax form What Is Fair Market Value (FMV)? To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution. 1040v tax form Fair market value. 1040v tax form   Fair market value (FMV) is the price that property would sell for on the open market. 1040v tax form It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. 1040v tax form If you put a restriction on the use of property you donate, the FMV must reflect that restriction. 1040v tax form Example 1. 1040v tax form If you give used clothing to the Salvation Army, the FMV would be the price that typical buyers actually pay for clothing of this age, condition, style, and use. 1040v tax form Usually, such items are worth far less than what you paid for them. 1040v tax form Example 2. 1040v tax form If you donate land and restrict its use to agricultural purposes, you must value the land at its value for agricultural purposes, even though it would have a higher FMV if it were not restricted. 1040v tax form Factors. 1040v tax form   In making and supporting the valuation of property, all factors affecting value are relevant and must be considered. 1040v tax form These include: The cost or selling price of the item, Sales of comparable properties, Replacement cost, and Opinions of experts. 1040v tax form   These factors are discussed later. 1040v tax form Also, see Table 1 for a summary of questions to ask as you consider each factor. 1040v tax form Date of contribution. 1040v tax form   Ordinarily, the date of a contribution is the date that the transfer of the property takes place. 1040v tax form Stock. 1040v tax form   If you deliver, without any conditions, a properly endorsed stock certificate to a qualified organization or to an agent of the organization, the date of the contribution is the date of delivery. 1040v tax form If the certificate is mailed and received through the regular mail, it is the date of mailing. 1040v tax form If you deliver the certificate to a bank or broker acting as your agent or to the issuing corporation or its agent, for transfer into the name of the organization, the date of the contribution is the date the stock is transferred on the books of the corporation. 1040v tax form Options. 1040v tax form   If you grant an option to a qualified organization to buy real property, you have not made a charitable contribution until the organization exercises the option. 1040v tax form The amount of the contribution is the FMV of the property on the date the option is exercised minus the exercise price. 1040v tax form Example. 1040v tax form You grant an option to a local university, which is a qualified organization, to buy real property. 1040v tax form Under the option, the university could buy the property at any time during a 2-year period for $40,000. 1040v tax form The FMV of the property on the date the option is granted is $50,000. 1040v tax form In the following tax year, the university exercises the option. 1040v tax form The FMV of the property on the date the option is exercised is $55,000. 1040v tax form Therefore, you have made a charitable contribution of $15,000 ($55,000, the FMV, minus $40,000, the exercise price) in the tax year the option is exercised. 1040v tax form Determining Fair Market Value Determining the value of donated property would be a simple matter if you could rely only on fixed formulas, rules, or methods. 1040v tax form Usually it is not that simple. 1040v tax form Using such formulas, etc. 1040v tax form , seldom results in an acceptable determination of FMV. 1040v tax form There is no single formula that always applies when determining the value of property. 1040v tax form This is not to say that a valuation is only guesswork. 1040v tax form You must consider all the facts and circumstances connected with the property, such as its desirability, use, and scarcity. 1040v tax form For example, donated furniture should not be evaluated at some fixed rate such as 15% of the cost of new replacement furniture. 1040v tax form When the furniture is contributed, it may be out of style or in poor condition, therefore having little or no market value. 1040v tax form On the other hand, it may be an antique, the value of which could not be determined by using any formula. 1040v tax form Cost or Selling Price of the Donated Property The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. 1040v tax form However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution. 1040v tax form The cost or selling price is a good indication of the property's value if: The purchase or sale took place close to the valuation date in an open market, The purchase or sale was at “arm's-length,” The buyer and seller knew all relevant facts, The buyer and seller did not have to act, and The market did not change between the date of purchase or sale and the valuation date. 1040v tax form Example. 1040v tax form Tom Morgan, who is not a dealer in gems, bought an assortment of gems for $5,000 from a promoter. 1040v tax form The promoter claimed that the price was “wholesale” even though he and other dealers made similar sales at similar prices to other persons who were not dealers. 1040v tax form The promoter said that if Tom kept the gems for more than 1 year and then gave them to charity, Tom could claim a charitable deduction of $15,000, which, according to the promoter, would be the value of the gems at the time of contribution. 1040v tax form Tom gave the gems to a qualified charity 13 months after buying them. 1040v tax form The selling price for these gems had not changed from the date of purchase to the date he donated them to charity. 1040v tax form The best evidence of FMV depends on actual transactions and not on some artificial estimate. 1040v tax form The $5,000 charged Tom and others is, therefore, the best evidence of the maximum FMV of the gems. 1040v tax form Terms of the purchase or sale. 1040v tax form   The terms of the purchase or sale should be considered in determining FMV if they influenced the price. 1040v tax form These terms include any restrictions, understandings, or covenants limiting the use or disposition of the property. 1040v tax form Rate of increase or decrease in value. 1040v tax form   Unless you can show that there were unusual circumstances, it is assumed that the increase or decrease in the value of your donated property from your cost has been at a reasonable rate. 1040v tax form For time adjustments, an appraiser may consider published price indexes for information on general price trends, building costs, commodity costs, securities, and works of art sold at auction in arm's-length sales. 1040v tax form Example. 1040v tax form Bill Brown bought a painting for $10,000. 1040v tax form Thirteen months later he gave it to an art museum, claiming a charitable deduction of $15,000 on his tax return. 1040v tax form The appraisal of the painting should include information showing that there were unusual circumstances that justify a 50% increase in value for the 13 months Bill held the property. 1040v tax form Arm's-length offer. 1040v tax form   An arm's-length offer to buy the property close to the valuation date may help to prove its value if the person making the offer was willing and able to complete the transaction. 1040v tax form To rely on an offer, you should be able to show proof of the offer and the specific amount to be paid. 1040v tax form Offers to buy property other than the donated item will help to determine value if the other property is reasonably similar to the donated property. 1040v tax form Sales of Comparable Properties The sales prices of properties similar to the donated property are often important in determining the FMV. 1040v tax form The weight to be given to each sale depends on the following. 1040v tax form The degree of similarity between the property sold and the donated property. 1040v tax form The time of the sale—whether it was close to the valuation date. 1040v tax form The circumstances of the sale—whether it was at arm's-length with a knowledgeable buyer and seller, with neither having to act. 1040v tax form The conditions of the market in which the sale was made—whether unusually inflated or deflated. 1040v tax form The comparable sales method of valuing real estate is explained later under Valuation of Various Kinds of Property. 1040v tax form Example 1. 1040v tax form Mary Black, who is not a book dealer, paid a promoter $10,000 for 500 copies of a single edition of a modern translation of the Bible. 1040v tax form The promoter had claimed that the price was considerably less than the “retail” price, and gave her a statement that the books had a total retail value of $30,000. 1040v tax form The promoter advised her that if she kept the Bibles for more than 1 year and then gave them to a qualified organization, she could claim a charitable deduction for the “retail” price of $30,000. 1040v tax form Thirteen months later she gave all the Bibles to a church that she selected from a list provided by the promoter. 1040v tax form At the time of her donation, wholesale dealers were selling similar quantities of Bibles to the general public for $10,000. 1040v tax form The FMV of the Bibles is $10,000, the price at which similar quantities of Bibles were being sold to others at the time of the contribution. 1040v tax form Example 2. 1040v tax form The facts are the same as in Example 1, except that the promoter gave Mary Black a second option. 1040v tax form The promoter said that if Mary wanted a charitable deduction within 1 year of the purchase, she could buy the 500 Bibles at the “retail” price of $30,000, paying only $10,000 in cash and giving a promissory note for the remaining $20,000. 1040v tax form The principal and interest on the note would not be due for 12 years. 1040v tax form According to the promoter, Mary could then, within 1 year of the purchase, give the Bibles to a qualified organization and claim the full $30,000 retail price as a charitable contribution. 1040v tax form She purchased the Bibles under the second option and, 3 months later, gave them to a church, which will use the books for church purposes. 1040v tax form At the time of the gift, the promoter was selling similar lots of Bibles for either $10,000 or $30,000. 1040v tax form The difference between the two prices was solely at the discretion of the buyer. 1040v tax form The promoter was a willing seller for $10,000. 1040v tax form Therefore, the value of Mary's contribution of the Bibles is $10,000, the amount at which similar lots of Bibles could be purchased from the promoter by members of the general public. 1040v tax form Replacement Cost The cost of buying, building, or manufacturing property similar to the donated item should be considered in determining FMV. 1040v tax form However, there must be a reasonable relationship between the replacement cost and the FMV. 1040v tax form The replacement cost is the amount it would cost to replace the donated item on the valuation date. 1040v tax form Often there is no relationship between the replacement cost and the FMV. 1040v tax form If the supply of the donated property is more or less than the demand for it, the replacement cost becomes less important. 1040v tax form To determine the replacement cost of the donated property, find the “estimated replacement cost new. 1040v tax form ” Then subtract from this figure an amount for depreciation due to the physical condition and obsolescence of the donated property. 1040v tax form You should be able to show the relationship between the depreciated replacement cost and the FMV, as well as how you arrived at the “estimated replacement cost new. 1040v tax form ” Opinions of Experts Generally, the weight given to an expert's opinion on matters such as the authenticity of a coin or a work of art, or the most profitable and best use of a piece of real estate, depends on the knowledge and competence of the expert and the thoroughness with which the opinion is supported by experience and facts. 1040v tax form For an expert's opinion to deserve much weight, the facts must support the opinion. 1040v tax form For additional information, see Appraisals, later. 1040v tax form Table 1. 1040v tax form Factors That Affect FMV IF the factor you are considering is. 1040v tax form . 1040v tax form . 1040v tax form THEN you should ask these questions. 1040v tax form . 1040v tax form . 1040v tax form     cost or selling price Was the purchase or sale of the property reasonably close to the date of contribution? Was any increase or decrease in value, as compared to your cost, at a reasonable rate? Do the terms of purchase or sale limit what can be done with the property? Was there an arm's-length offer to buy the property close to the valuation date?     sales of comparable properties How similar is the property sold to the property donated? How close is the date of sale to the valuation date? Was the sale at arm's-length? What was the condition of the market at the time of sale?     replacement cost What would it cost to replace the donated property? Is there a reasonable relationship between replacement cost and FMV? Is the supply of the donated property more or less than the demand for it?     opinions of experts Is the expert knowledgeable and competent? Is the opinion thorough and supported by facts and experience? Problems in Determining Fair Market Value There are a number of problems in determining the FMV of donated property. 1040v tax form Unusual Market Conditions The sale price of the property itself in an arm's-length transaction in an open market is often the best evidence of its value. 1040v tax form When you rely on sales of comparable property, the sales must have been made in an open market. 1040v tax form If those sales were made in a market that was artificially supported or stimulated so as not to be truly representative, the prices at which the sales were made will not indicate the FMV. 1040v tax form For example, liquidation sale prices usually do not indicate the FMV. 1040v tax form Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV. 1040v tax form Selection of Comparable Sales Using sales of comparable property is an important method for determining the FMV of donated property. 1040v tax form However, the amount of weight given to a sale depends on the degree of similarity between the comparable and the donated properties. 1040v tax form The degree of similarity must be close enough so that this selling price would have been given consideration by reasonably well-informed buyers or sellers of the property. 1040v tax form Example. 1040v tax form You give a rare, old book to your former college. 1040v tax form The book is a third edition and is in poor condition because of a missing back cover. 1040v tax form You discover that there was a sale for $300, near the valuation date, of a first edition of the book that was in good condition. 1040v tax form Although the contents are the same, the books are not at all similar because of the different editions and their physical condition. 1040v tax form Little consideration would be given to the selling price of the $300 property by knowledgeable buyers or sellers. 1040v tax form Future Events You may not consider unexpected events happening after your donation of property in making the valuation. 1040v tax form You may consider only the facts known at the time of the gift, and those that could be reasonably expected at the time of the gift. 1040v tax form Example. 1040v tax form You give farmland to a qualified charity. 1040v tax form The transfer provides that your mother will have the right to all income and full use of the property for her life. 1040v tax form Even though your mother dies 1 week after the transfer, the value of the property on the date it is given is its present value, subject to the life interest as estimated from actuarial tables. 1040v tax form You may not take a higher deduction because the charity received full use and possession of the land only 1 week after the transfer. 1040v tax form Using Past Events to Predict the Future A common error is to rely too much on past events that do not fairly reflect the probable future earnings and FMV. 1040v tax form Example. 1040v tax form You give all your rights in a successful patent to your favorite charity. 1040v tax form Your records show that before the valuation date there were three stages in the patent's history of earnings. 1040v tax form First, there was rapid growth in earnings when the invention was introduced. 1040v tax form Then, there was a period of high earnings when the invention was being exploited. 1040v tax form Finally, there was a decline in earnings when competing inventions were introduced. 1040v tax form The entire history of earnings may be relevant in estimating the future earnings. 1040v tax form However, the appraiser must not rely too much on the stage of rapid growth in earnings, or of high earnings. 1040v tax form The market conditions at those times do not represent the condition of the market at the valuation date. 1040v tax form What is most significant is the trend of decline in earnings up to the valuation date. 1040v tax form For more information about donations of patents, see Patents, later. 1040v tax form Valuation of Various Kinds of Property This section contains information on determining the FMV of ordinary kinds of donated property. 1040v tax form For information on appraisals, see Appraisals, later. 1040v tax form Household Goods The FMV of used household goods, such as furniture, appliances, and linens, is usually much lower than the price paid when new. 1040v tax form Such used property may have little or no market value because of its worn condition. 1040v tax form It may be out of style or no longer useful. 1040v tax form You cannot take a deduction for household goods donated after August 17, 2006, unless they are in good used condition or better. 1040v tax form A household good that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. 1040v tax form See Deduction over $500 for certain clothing or household items, later. 1040v tax form If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art. 1040v tax form Used Clothing Used clothing and other personal items are usually worth far less than the price you paid for them. 1040v tax form Valuation of items of clothing does not lend itself to fixed formulas or methods. 1040v tax form The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value. 1040v tax form You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. 1040v tax form An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. 1040v tax form See Deduction over $500 for certain clothing or household items, later. 1040v tax form For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return. 1040v tax form Jewelry and Gems Jewelry and gems are of such a specialized nature that it is almost always necessary to get an appraisal by a specialized jewelry appraiser. 1040v tax form The appraisal should describe, among other things, the style of the jewelry, the cut and setting of the gem, and whether it is now in fashion. 1040v tax form If not in fashion, the possibility of having the property redesigned, recut, or reset should be reported in the appraisal. 1040v tax form The stone's coloring, weight, cut, brilliance, and flaws should be reported and analyzed. 1040v tax form Sentimental personal value has no effect on FMV. 1040v tax form But if the jewelry was owned by a famous person, its value might increase. 1040v tax form Paintings, Antiques, and Other Objects of Art Your deduction for contributions of paintings, antiques, and other objects of art, should be supported by a written appraisal from a qualified and reputable source, unless the deduction is $5,000 or less. 1040v tax form Examples of information that should be included in appraisals of art objects—paintings in particular—are found later under Qualified Appraisal. 1040v tax form Art valued at $20,000 or more. 1040v tax form   If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the signed appraisal to your return. 1040v tax form For individual objects valued at $20,000 or more, a photograph of a size and quality fully showing the object, preferably an 8 x 10 inch color photograph or a color transparency no smaller than 4 x 5 inches, must be provided upon request. 1040v tax form Art valued at $50,000 or more. 1040v tax form   If you donate an item of art that has been appraised at $50,000 or more, you can request a Statement of Value for that item from the IRS. 1040v tax form You must request the statement before filing the tax return that reports the donation. 1040v tax form Your request must include the following. 1040v tax form A copy of a qualified appraisal of the item. 1040v tax form See Qualified Appraisal, later. 1040v tax form A $2,500 check or money order payable to the Internal Revenue Service for the user fee that applies to your request regarding one, two, or three items of art. 1040v tax form Add $250 for each item in excess of three. 1040v tax form A completed Form 8283, Section B. 1040v tax form The location of the IRS territory that has examination responsibility for your return. 1040v tax form If your request lacks essential information, you will be notified and given 30 days to provide the missing information. 1040v tax form   Send your request to: Internal Revenue Service Attention: Art Appraisal (C:AP:ART) P. 1040v tax form O. 1040v tax form Box 27720 McPherson Station Washington, DC 20038 Refunds. 1040v tax form   You can withdraw your request for a Statement of Value at any time before it is issued. 1040v tax form However, the IRS will not refund the user fee if you do. 1040v tax form   If the IRS declines to issue a Statement of Value in the interest of efficient tax administration, the IRS will refund the user fee. 1040v tax form Authenticity. 1040v tax form   The authenticity of the donated art must be determined by the appraiser. 1040v tax form Physical condition. 1040v tax form   Important items in the valuation of antiques and art are physical condition and extent of restoration. 1040v tax form These have a significant effect on the value and must be fully reported in an appraisal. 1040v tax form An antique in damaged condition, or lacking the “original brasses,” may be worth much less than a similar piece in excellent condition. 1040v tax form Art appraisers. 1040v tax form   More weight will usually be given to an appraisal prepared by an individual specializing in the kind and price range of the art being appraised. 1040v tax form Certain art dealers or appraisers specialize, for example, in old masters, modern art, bronze sculpture, etc. 1040v tax form Their opinions on the authenticity and desirability of such art would usually be given more weight than the opinions of more generalized art dealers or appraisers. 1040v tax form They can report more recent comparable sales to support their opinion. 1040v tax form   To identify and locate experts on unique, specialized items or collections, you may wish to use the current Official Museum Directory of the American Association of Museums. 1040v tax form It lists museums both by state and by category. 1040v tax form   To help you locate a qualified appraiser for your donation, you may wish to ask an art historian at a nearby college or the director or curator of a local museum. 1040v tax form The Yellow Pages often list specialized art and antique dealers, auctioneers, and art appraisers. 1040v tax form You may be able to find a qualified appraiser on the Internet. 1040v tax form You may also contact associations of dealers for guidance. 1040v tax form Collections Since many kinds of hobby collections may be the subject of a charitable donation, it is not possible to discuss all of the possible collectibles in this publication. 1040v tax form Most common are rare books, autographs, sports memorabilia, dolls, manuscripts, stamps, coins, guns, phonograph records, and natural history items. 1040v tax form Many of the elements of valuation that apply to paintings and other objects of art, discussed earlier, also apply to miscellaneous collections. 1040v tax form Reference material. 1040v tax form   Publications available to help you determine the value of many kinds of collections include catalogs, dealers' price lists, and specialized hobby periodicals. 1040v tax form When using one of these price guides, you must use the current edition at the date of contribution. 1040v tax form However, these sources are not always reliable indicators of FMV and should be supported by other evidence. 1040v tax form   For example, a dealer may sell an item for much less than is shown on a price list, particularly after the item has remained unsold for a long time. 1040v tax form The price an item sold for in an auction may have been the result of a rigged sale or a mere bidding duel. 1040v tax form The appraiser must analyze the reference material, and recognize and make adjustments for misleading entries. 1040v tax form If you are donating a valuable collection, you should get an appraisal. 1040v tax form If your donation appears to be of little value, you may be able to make a satisfactory valuation using reference materials available at a state, city, college, or museum library. 1040v tax form Stamp collections. 1040v tax form   Most libraries have catalogs or other books that report the publisher's estimate of values. 1040v tax form Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. 1040v tax form Stamp dealers generally know the value of their merchandise and are able to prepare satisfactory appraisals of valuable collections. 1040v tax form Coin collections. 1040v tax form   Many catalogs and other reference materials show the writer's or publisher's opinion of the value of coins on or near the date of the publication. 1040v tax form Like many other collectors' items, the value of a coin depends on the demand for it, its age, and its rarity. 1040v tax form Another important factor is the coin's condition. 1040v tax form For example, there is a great difference in the value of a coin that is in mint condition and a similar coin that is only in good condition. 1040v tax form   Catalogs usually establish a category for coins, based on their physical condition—mint or uncirculated, extremely fine, very fine, fine, very good, good, fair, or poor—with a different valuation for each category. 1040v tax form Books. 1040v tax form   The value of books is usually determined by selecting comparable sales and adjusting the prices according to the differences between the comparable sales and the item being evaluated. 1040v tax form This is difficult to do and, except for a collection of little value, should be done by a specialized appraiser. 1040v tax form Within the general category of literary property, there are dealers who specialize in certain areas, such as Americana, foreign imports, Bibles, and scientific books. 1040v tax form Modest value of collection. 1040v tax form   If the collection you are donating is of modest value, not requiring a written appraisal, the following information may help you in determining the FMV. 1040v tax form   A book that is very old, or very rare, is not necessarily valuable. 1040v tax form There are many books that are very old or rare, but that have little or no market value. 1040v tax form Condition of book. 1040v tax form   The condition of a book may have a great influence on its value. 1040v tax form Collectors are interested in items that are in fine, or at least good, condition. 1040v tax form When a book has a missing page, a loose binding, tears, stains, or is otherwise in poor condition, its value is greatly lowered. 1040v tax form Other factors. 1040v tax form   Some other factors in the valuation of a book are the kind of binding (leather, cloth, paper), page edges, and illustrations (drawings and photographs). 1040v tax form Collectors usually want first editions of books. 1040v tax form However, because of changes or additions, other editions are sometimes worth as much as, or more than, the first edition. 1040v tax form Manuscripts, autographs, diaries, and similar items. 1040v tax form   When these items are handwritten, or at least signed by famous people, they are often in demand and are valuable. 1040v tax form The writings of unknowns also may be of value if they are of unusual historical or literary importance. 1040v tax form Determining the value of such material is difficult. 1040v tax form For example, there may be a great difference in value between two diaries that were kept by a famous person—one kept during childhood and the other during a later period in his or her life. 1040v tax form The appraiser determines a value in these cases by applying knowledge and judgment to such factors as comparable sales and conditions. 1040v tax form Signatures. 1040v tax form   Signatures, or sets of signatures, that were cut from letters or other papers usually have little or no value. 1040v tax form But complete sets of the signatures of U. 1040v tax form S. 1040v tax form presidents are in demand. 1040v tax form Cars, Boats, and Aircraft If you donate a car, a boat, or an aircraft to a charitable organization, its FMV must be determined. 1040v tax form Certain commercial firms and trade organizations publish monthly or seasonal guides for different regions of the country, containing complete dealer sale prices or dealer average prices for recent model years. 1040v tax form Prices are reported for each make, model, and year. 1040v tax form These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. 1040v tax form The prices are not “official,” and these publications are not considered an appraisal of any specific donated property. 1040v tax form But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. 1040v tax form These publications are sometimes available from public libraries or at a bank, credit union, or finance company. 1040v tax form You can also find pricing information about used cars on the Internet. 1040v tax form An acceptable measure of the FMV of a donated car, boat, or airplane is an amount not in excess of the price listed in a used vehicle pricing guide for a private party sale, not the dealer retail value, of a similar vehicle. 1040v tax form However, the FMV may be less than that amount if the vehicle has engine trouble, body damage, high mileage, or any type of excessive wear. 1040v tax form The FMV of a donated vehicle is the same as the price listed in a used vehicle pricing guide for a private party sale only if the guide lists a sales price for a vehicle that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated vehicle. 1040v tax form Example. 1040v tax form You donate a used car in poor condition to a local high school for use by students studying car repair. 1040v tax form A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. 1040v tax form However, the guide shows the price for a private party sale of the car is only $750. 1040v tax form The FMV of the car is considered to be no more than $750. 1040v tax form Boats. 1040v tax form   Except for inexpensive small boats, the valuation of boats should be based on an appraisal by a marine surveyor because the physical condition is so critical to the value. 1040v tax form More information. 1040v tax form   Your deduction for a donated car, boat, or airplane generally is limited to the gross proceeds from its sale by the qualified organization. 1040v tax form This rule applies if the claimed value of the donated vehicle is more than $500. 1040v tax form In certain cases, you can deduct the vehicle's FMV. 1040v tax form For details, see Publication 526. 1040v tax form Inventory If you donate any inventory item to a charitable organization, the amount of your deductible contribution generally is the FMV of the item, minus any gain you would have realized if you had sold the item at its FMV on the date of the gift. 1040v tax form For more information, see Publication 526. 1040v tax form Patents To determine the FMV of a patent, you must take into account, among other factors: Whether the patented technology has been made obsolete by other technology; Any restrictions on the donee's use of, or ability to transfer, the patented technology; and The length of time remaining before the patent expires. 1040v tax form However, your deduction for a donation of a patent or other intellectual property is its FMV, minus any gain you would have realized if you had sold the property at its FMV on the date of the gift. 1040v tax form Generally, this means your deduction is the lesser of the property's FMV or its basis. 1040v tax form For details, see Publication 526. 1040v tax form Stocks and Bonds The value of stocks and bonds is the FMV of a share or bond on the valuation date. 1040v tax form See Date of contribution, earlier, under What Is Fair Market Value (FMV). 1040v tax form Selling prices on valuation date. 1040v tax form   If there is an active market for the contributed stocks or bonds on a stock exchange, in an over-the-counter market, or elsewhere, the FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. 1040v tax form For example, if the highest selling price for a share was $11, and the lowest $9, the average price is $10. 1040v tax form You get the average price by adding $11 and $9 and dividing the sum by 2. 1040v tax form No sales on valuation date. 1040v tax form   If there were no sales on the valuation date, but there were sales within a reasonable period before and after the valuation date, you determine FMV by taking the average price between the highest and lowest sales prices on the nearest date before and on the nearest date after the valuation date. 1040v tax form Then you weight these averages in inverse order by the respective number of trading days between the selling dates and the valuation date. 1040v tax form Example. 1040v tax form   On the day you gave stock to a qualified organization, there were no sales of the stock. 1040v tax form Sales of the stock nearest the valuation date took place two trading days before the valuation date at an average selling price of $10 and three trading days after the valuation date at an average selling price of $15. 1040v tax form The FMV on the valuation date was $12, figured as follows: [(3 x $10) + (2 x $15)] ÷ 5 = $12 Listings on more than one stock exchange. 1040v tax form   Stocks or bonds listed on more than one stock exchange are valued based on the prices of the exchange on which they are principally dealt. 1040v tax form This applies if these prices are published in a generally available listing or publication of general circulation. 1040v tax form If this is not applicable, and the stocks or bonds are reported on a composite listing of combined exchanges in a publication of general circulation, use the composite list. 1040v tax form See also Unavailable prices or closely held corporation, later. 1040v tax form Bid and asked prices on valuation date. 1040v tax form   If there were no sales within a reasonable period before and after the valuation date, the FMV is the average price between the bona fide bid and asked prices on the valuation date. 1040v tax form Example. 1040v tax form Although there were no sales of Blue Corporation stock on the valuation date, bona fide bid and asked prices were available on that date of $14 and $16, respectively. 1040v tax form The FMV is $15, the average price between the bid and asked prices. 1040v tax form No prices on valuation date. 1040v tax form   If there were no prices available on the valuation date, you determine FMV by taking the average prices between the bona fide bid and asked prices on the closest trading date before and after the valuation date. 1040v tax form Both dates must be within a reasonable period. 1040v tax form Then you weight these averages in inverse order by the respective number of trading days between the bid and asked dates and the valuation date. 1040v tax form Example. 1040v tax form On the day you gave stock to a qualified organization, no prices were available. 1040v tax form Bona fide bid and asked prices 3 days before the valuation date were $10 and 2 days after the valuation date were $15. 1040v tax form The FMV on the valuation date is $13, figured as follows: [(2 x $10) + (3 x $15)] ÷ 5 = $13 Prices only before or after valuation date, but not both. 1040v tax form   If no selling prices or bona fide bid and asked prices are available on a date within a reasonable period before the valuation date, but are available on a date within a reasonable period after the valuation date, or vice versa, then the average price between the highest and lowest of such available prices may be treated as the value. 1040v tax form Large blocks of stock. 1040v tax form   When a large block of stock is put on the market, it may lower the selling price of the stock if the supply is greater than the demand. 1040v tax form On the other hand, market forces may exist that will afford higher prices for large blocks of stock. 1040v tax form Because of the many factors to be considered, determining the value of large blocks of stock usually requires the help of experts specializing in underwriting large quantities of securities, or in trading in the securities of the industry of which the particular company is a part. 1040v tax form Unavailable prices or closely held corporation. 1040v tax form   If selling prices or bid and asked prices are not available, or if securities of a closely held corporation are involved, determine the FMV by considering the following factors. 1040v tax form For bonds, the soundness of the security, the interest yield, the date of maturity, and other relevant factors. 1040v tax form For shares of stock, the company's net worth, prospective earning power and dividend-paying capacity, and other relevant factors. 1040v tax form Other factors. 1040v tax form   Other relevant factors include: The nature and history of the business, especially its recent history, The goodwill of the business, The economic outlook in the particular industry, The company's position in the industry, its competitors, and its management, and The value of securities of corporations engaged in the same or similar business. 1040v tax form For preferred stock, the most important factors are its yield, dividend coverage, and protection of its liquidation preference. 1040v tax form   You should keep complete financial and other information on which the valuation is based. 1040v tax form This includes copies of reports of examinations of the company made by accountants, engineers, or any technical experts on or close to the valuation date. 1040v tax form Restricted securities. 1040v tax form   Some classes of stock cannot be traded publicly because of restrictions imposed by the Securities and Exchange Commission, or by the corporate charter or a trust agreement. 1040v tax form These restricted securities usually trade at a discount in relation to freely traded securities. 1040v tax form   To arrive at the FMV of restricted securities, factors that you must consider include the resale provisions found in the restriction agreements, the relative negotiating strengths of the buyer and seller, and the market experience of freely traded securities of the same class as the restricted securities. 1040v tax form Real Estate Because each piece of real estate is unique and its valuation is complicated, a detailed appraisal by a professional appraiser is necessary. 1040v tax form The appraiser must be thoroughly trained in the application of appraisal principles and theory. 1040v tax form In some instances the opinions of equally qualified appraisers may carry unequal weight, such as when one appraiser has a better knowledge of local conditions. 1040v tax form The appraisal report must contain a complete description of the property, such as street address, legal description, and lot and block number, as well as physical features, condition, and dimensions. 1040v tax form The use to which the property is put, zoning and permitted uses, and its potential use for other higher and better uses are also relevant. 1040v tax form In general, there are three main approaches to the valuation of real estate. 1040v tax form An appraisal may require the combined use of two or three methods rather than one method only. 1040v tax form 1. 1040v tax form Comparable Sales The comparable sales method compares the donated property with several similar properties that have been sold. 1040v tax form The selling prices, after adjustments for differences in date of sale, size, condition, and location, would then indicate the estimated FMV of the donated property. 1040v tax form If the comparable sales method is used to determine the value of unimproved real property (land without significant buildings, structures, or any other improvements that add to its value), the appraiser should consider the following factors when comparing the potential comparable property and the donated property: Location, size, and zoning or use restrictions, Accessibility and road frontage, and available utilities and water rights, Riparian rights (right of access to and use of the water by owners of land on the bank of a river) and existing easements, rights-of-way, leases, etc. 1040v tax form , Soil characteristics, vegetative cover, and status of mineral rights, and Other factors affecting value. 1040v tax form For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor's appraised FMV. 1040v tax form The comparable selling prices must be adjusted to account for differences between the sale property and the donated property. 1040v tax form Because differences of opinion may arise between appraisers as to the degree of comparability and the amount of the adjustment considered necessary for comparison purposes, an appraiser should document each item of adjustment. 1040v tax form Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property. 1040v tax form 2. 1040v tax form Capitalization of Income This method capitalizes the net income from the property at a rate that represents a fair return on the particular investment at the particular time, considering the risks involved. 1040v tax form The key elements are the determination of the income to be capitalized and the rate of capitalization. 1040v tax form 3. 1040v tax form Replacement Cost New or Reproduction Cost Minus Observed Depreciation This method, used alone, usually does not result in a determination of FMV. 1040v tax form Instead, it generally tends to set the upper limit of value, particularly in periods of rising costs, because it is reasonable to assume that an informed buyer will not pay more for the real estate than it would cost to reproduce a similar property. 1040v tax form Of course, this reasoning does not apply if a similar property cannot be created because of location, unusual construction, or some other reason. 1040v tax form Generally, this method serves to support the value determined from other methods. 1040v tax form When the replacement cost method is applied to improved realty, the land and improvements are valued separately. 1040v tax form The replacement cost of a building is figured by considering the materials, the quality of workmanship, and the number of square feet or cubic feet in the building. 1040v tax form This cost represents the total cost of labor and material, overhead, and profit. 1040v tax form After the replacement cost has been figured, consideration must be given to the following factors: Physical deterioration—the wear and tear on the building itself, Functional obsolescence—usually in older buildings with, for example, inadequate lighting, plumbing, or heating, small rooms, or a poor floor plan, and Economic obsolescence—outside forces causing the whole area to become less desirable. 1040v tax form Interest in a Business The FMV of any interest in a business, whether a sole proprietorship or a partnership, is the amount that a willing buyer would pay for the interest to a willing seller after consideration of all relevant factors. 1040v tax form The relevant factors to be considered in valuing the business are: The FMV of the assets of the business, The demonstrated earnings capacity of the business, based on a review of past and current earnings, and The other factors used in evaluating corporate stock, if they apply. 1040v tax form The value of the goodwill of the business should also be taken into consideration. 1040v tax form You should keep complete financial and other information on which you base the valuation. 1040v tax form This includes copies of reports of examinations of the business made by accountants, engineers, or any technical experts on or close to the valuation date. 1040v tax form Annuities, Interests for Life or Terms of Years, Remainders, and Reversions The value of these kinds of property is their present value, except in the case of annuities under contracts issued by companies regularly engaged in their sale. 1040v tax form The valuation of these commercial annuity contracts and of insurance policies is discussed later under Certain Life Insurance and Annuity Contracts. 1040v tax form To determine present value, you must know the applicable interest rate and use actuarial tables. 1040v tax form Interest rate. 1040v tax form   The applicable interest rate varies. 1040v tax form It is announced monthly in a news release and published in the Internal Revenue Bulletin as a Revenue Ruling. 1040v tax form The interest rate to use is under the heading “Rate Under Section 7520” for a given month and year. 1040v tax form You can call the IRS office at 1-800-829-1040 to obtain this rate. 1040v tax form Actuarial tables. 1040v tax form   You need to refer to actuarial tables to determine a qualified interest in the form of an annuity, any interest for life or a term of years, or any remainder interest to a charitable organization. 1040v tax form   Use the valuation tables set forth in IRS Publications 1457, Actuarial Values (Book Aleph), and 1458, Actuarial Values (Book Beth). 1040v tax form Both of these publications provide tables containing actuarial factors to be used in determining the present value of an annuity, an interest for life or for a term of years, or a remainder or reversionary interest. 1040v tax form For qualified charitable transfers, you can use the factor for the month in which you made the contribution or for either of the 2 months preceding that month. 1040v tax form   Publication 1457 also contains actuarial factors for computing the value of a remainder interest in a charitable remainder annuity trust and a pooled income fund. 1040v tax form Publication 1458 contains the factors for valuing the remainder interest in a charitable remainder unitrust. 1040v tax form You can download Publications 1457 and 1458 from www. 1040v tax form irs. 1040v tax form gov. 1040v tax form In addition, they are available for purchase via the website of the U. 1040v tax form S. 1040v tax form Government Printing Office, by phone at (202) 512-1800, or by mail from the: Superintendent of Documents P. 1040v tax form O. 1040v tax form Box 371954 Pittsburgh, PA 15250-7954 Tables containing actuarial factors for transfers to pooled income funds may also be found in Income Tax Regulation 1. 1040v tax form 642(c)-6(e)(6), transfers to charitable remainder unitrusts in Regulation 1. 1040v tax form 664-4(e), and other transfers in Regulation 20. 1040v tax form 2031-7(d)(6). 1040v tax form Special factors. 1040v tax form   If you need a special factor for an actual transaction, you can request a letter ruling. 1040v tax form Be sure to include the date of birth of each person the duration of whose life may affect the value of the interest. 1040v tax form Also include copies of the relevant instruments. 1040v tax form IRS charges a user fee for providing special factors. 1040v tax form   For more information about requesting a ruling, see Revenue Procedure 2006-1 (or annual update), 2006-1 I. 1040v tax form R. 1040v tax form B. 1040v tax form 1. 1040v tax form Revenue Procedure 2006-1 is available at www. 1040v tax form irs. 1040v tax form gov/irb/2006-01_IRB/ar06. 1040v tax form html. 1040v tax form   For information on the circumstances under which a charitable deduction may be allowed for the donation of a partial interest in property not in trust, see Partial Interest in Property Not in Trust, later. 1040v tax form Certain Life Insurance and Annuity Contracts The value of an annuity contract or a life insurance policy issued by a company regularly engaged in the sale of such contracts or policies is the amount that company would charge for a comparable contract. 1040v tax form But if the donee of a life insurance policy may reasonably be expected to cash the policy rather than hold it as an investment, then the FMV is the cash surrender value rather than the replacement cost. 1040v tax form If an annuity is payable under a combination annuity contract and life insurance policy (for example, a retirement income policy with a death benefit) and there was no insurance element when it was transferred to the charity, the policy is treated as an annuity contract. 1040v tax form Partial Interest in Property Not in Trust Generally, no deduction is allowed for a charitable contribution, not made in trust, of less than your entire interest in property. 1040v tax form However, this does not apply to a transfer of less than your entire interest if it is a transfer of: A remainder interest in your personal residence or farm, An undivided part of your entire interest in property, or A qualified conservation contribution. 1040v tax form Remainder Interest in Real Property The amount of the deduction for a donation of a remainder interest in real property is the FMV of the remainder interest at the time of the contribution. 1040v tax form To determine this value, you must know the FMV of the property on the date of the contribution. 1040v tax form Multiply this value by the appropriate factor. 1040v tax form Publications 1457 and 1458 contain these factors. 1040v tax form You must make an adjustment for depreciation or depletion using the factors shown in Publication 1459, Actuarial Values (Book Gimel). 1040v tax form You can use the factors for the month in which you made the contribution or for either of the two months preceding that month. 1040v tax form See the earlier discussion on Annuities, Interests for Life or Terms of Years, Remainders, and Reversions. 1040v tax form You can download Publication 1459 from www. 1040v tax form irs. 1040v tax form gov. 1040v tax form For this purpose, the term “depreciable property” means any property subject to wear and tear or obsolescence, even if not used in a trade or business or for the production of income. 1040v tax form If the remainder interest includes both depreciable and nondepreciable property, for example a house and land, the FMV must be allocated between each kind of property at the time of the contribution. 1040v tax form This rule also applies to a gift of a remainder interest that includes property that is part depletable and part not depletable. 1040v tax form Take into account depreciation or depletion only for the property that is subject to depreciation or depletion. 1040v tax form For more information, see section 1. 1040v tax form 170A-12 of the Income Tax Regulations. 1040v tax form Undivided Part of Your Entire Interest A contribution of an undivided part of your entire interest in property must consist of a part of each and every substantial interest or right you own in the property. 1040v tax form It must extend over the entire term of your interest in the property. 1040v tax form For example, you are entitled to the income from certain property for your life (life estate) and you contribute 20% of that life estate to a qualified organization. 1040v tax form You can claim a deduction for the contribution if you do not have any other interest in the property. 1040v tax form To figure the value of a contribution involving a partial interest, see Publication 1457. 1040v tax form If the only interest you own in real property is a remainder interest and you transfer part of that interest to a qualified organization, see the previous discussion on valuation of a remainder interest in real property. 1040v tax form Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. 1040v tax form Qualified organization. 1040v tax form   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charitable, religious, scientific, literary, educational, etc. 1040v tax form , organization, or An organization that is controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. 1040v tax form The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. 1040v tax form Conservation purposes. 1040v tax form   Your contribution must be made only for one of the following conservation purposes. 1040v tax form Preserving land areas for outdoor recreation by, or for the education of, the general public. 1040v tax form Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. 1040v tax form Preserving open space, including farmland and forest land, if it yields a significant public benefit. 1040v tax form It must be either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. 1040v tax form Preserving a historically important land area or a certified historic structure. 1040v tax form There must be some visual public access to the property. 1040v tax form Factors used in determining the type and amount of public access required include the historical significance of the property, the remoteness or accessibility of the site, and the extent to which intrusions on the privacy of individuals living on the property would be unreasonable. 1040v tax form Building in registered historic district. 1040v tax form   A contribution after July 25, 2006, of a qualified real property interest that is an easement or other restriction on the exterior of a building in a registered historic district is deductible only if it meets all of the following three conditions. 1040v tax form The restriction must preserve the entire exterior of the building and must prohibit any change to the exterior of the building that is inconsistent with its historical character. 1040v tax form You and the organization receiving the contribution must enter into a written agreement certifying, that the organization is a qualified organization and that it has the resources and commitment to maintain the property as donated. 1040v tax form If you make the contribution in a tax year beginning after August 17, 2006, you must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. 1040v tax form   If you make this type of contribution after February 12, 2007, and claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. 1040v tax form See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. 1040v tax form Qualified real property interest. 1040v tax form   This is any of the following interests in real property. 1040v tax form Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). 1040v tax form A remainder interest. 1040v tax form A restriction (granted in perpetuity) on the use that may be made of the real property. 1040v tax form Valuation. 1040v tax form   A qualified real property interest described in (1) should be valued in a manner that is consistent with the type of interest transferred. 1040v tax form If you transferred all the interest in the property, the FMV of the property is the amount of the contribution. 1040v tax form If you do not transfer the mineral interest, the FMV of the surface rights in the property is the amount of the contribution. 1040v tax form   If you owned only a remainder interest or an income interest (life estate), see Undivided Part of Your Entire Interest, earlier. 1040v tax form If you owned the entire property but transferred only a remainder interest (item (2)), see Remainder Interest in Real Property, earlier. 1040v tax form   In determining the value of restrictions, you should take into account the selling price in arm's-length transactions of other properties that have comparable restrictions. 1040v tax form If there are no comparable sales, the restrictions are valued indirectly as the difference between the FMVs of the property involved before and after the grant of the restriction. 1040v tax form   The FMV of the property before contribution of the restriction should take into account not only current use but the likelihood that the property, without the restriction, would be developed. 1040v tax form You should also consider any zoning, conservation, or historical preservation laws that would restrict development. 1040v tax form Granting an easement may increase, rather than reduce, the value of property, and in such a situation no deduction would be allowed. 1040v tax form Example. 1040v tax form   You own 10 acres of farmland. 1040v tax form Similar land in the area has an FMV of $2,000 an acre. 1040v tax form However, land in the general area that is restricted solely to farm use has an FMV of $1,500 an acre. 1040v tax form Your county wants to preserve open space and prevent further development in your area. 1040v tax form   You grant to the county an enforceable open space easement in perpetuity on 8 of the 10 acres, restricting its use to farmland. 1040v tax form The value of this easement is $4,000, determined as follows: FMV of the property before granting easement:   $2,000 × 10 acres $20,000 FMV of the property after granting easement:   $1,500 × 8 acres $12,000   $2,000 × 2 acres 4,000 16,000 Value of easement   $4,000   If you later transfer in fee your remaining interest in the 8 acres to another qualified organization, the FMV of your remaining interest is the FMV of the 8 acres reduced by the FMV of the easement granted to the first organization. 1040v tax form More information. 1040v tax form   For more information about qualified conservation contributions, see Publication 526. 1040v tax form Appraisals Appraisals are not necessary for items of property for which you claim a deduction of $5,000 or less. 1040v tax form (There is one exception, described next, for certain clothing and household items. 1040v tax form ) However, you generally will need an appraisal for donated property for which you claim a deduction of more than $5,000. 1040v tax form There are exceptions. 1040v tax form See Deductions of More Than $5,000, later. 1040v tax form The weight given an appraisal depends on the completeness of the report, the qualifications of the appraiser, and the appraiser's demonstrated knowledge of the donated property. 1040v tax form An appraisal must give all the facts on which to base an intelligent judgment of the value of the property. 1040v tax form The appraisal will not be given much weight if: All the factors that apply are not considered, The opinion is not supported with facts, such as purchase price and comparable sales, or The opinion is not consistent with known facts. 1040v tax form The appraiser's opinion is never more valid than the facts on which it is based; without these facts it is simply a guess. 1040v tax form The opinion of a person claiming to be an expert is not binding on the Internal Revenue Service. 1040v tax form All facts associated with the donation must be considered. 1040v tax form Deduction over $500 for certain clothing or household items. 1040v tax form   You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500. 1040v tax form See Household Goods and Used Clothing, earlier. 1040v tax form Cost of appraisals. 1040v tax form   You may not take a charitable contribution deduction for fees you pay for appraisals of your donated property. 1040v tax form However, these fees may qualify as a miscellaneous deduction, subject to the 2% limit, on Schedule A (Form 1040) if paid to determine the amount allowable as a charitable contribution. 1040v tax form Deductions of More Than $5,000 Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must attach Section B of Form 8283 to your tax return. 1040v tax form There are exceptions, discussed later. 1040v tax form You should keep the appraiser's report with your written records. 1040v tax form Records are discussed in Publication 526. 1040v tax form The phrase “similar items” means property of the same generic category or type (whether or not donated to the same donee), such as stamp collections, coin collections, lithographs, paintings, photographs, books, nonpublicly traded stock, nonpublicly traded securities other than nonpublicly traded stock, land, buildings, clothing, jewelry, furniture, electronic equipment, household appliances, toys, everyday kitchenware, china, crystal, or silver. 1040v tax form For example, if you give books to three schools and you deduct $2,000, $2,500, and $900, respectively, your claimed deduction is more than $5,000 for these books. 1040v tax form You must get a qualified appraisal of the books and for each school you must attach a fully completed Form 8283, Section B, to your tax return. 1040v tax form Exceptions. 1040v tax form   You do not need an appraisal if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane) for which your deduction is limited to the gross proceeds from its sale, Qualified intellectual property, such as a patent, Certain publicly traded securities described next, Inventory and other property donated by a corporation that are “qualified contributions” for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A) of the Internal Revenue Code, or Stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. 1040v tax form   Although an appraisal is not required for the types of property just listed, you must provide certain information about a donation of any of these types of property on Form 8283. 1040v tax form Publicly traded securities. 1040v tax form   Even if your claimed deduction is more than $5,000, neither a qualified appraisal nor Section B of Form 8283 is required for publicly traded securities that are: Listed on a stock exchange in which quotations are published on a daily basis, Regularly traded in a national or regional over-the-counter market for which published quotations are available, or Shares of an open-end investment company (mutual fund) for which quotations are published on a daily basis in a newspaper of general circulation throughout the United States. 1040v tax form Publicly traded securities that meet these requirements must be reported on Form 8283, Section A. 1040v tax form   A qualified appraisal is not required, but Form 8283, Section B, Parts I and IV, must be completed, for an issue of a security that does not meet the requirements just listed but does meet these requirements: The issue is regularly traded during the computation period (defined later) in a market for which there is an “interdealer quotation system” (defined later), The issuer or agent computes the “average trading price” (defined later) for the same issue for the computation period, The average trading price and total volume of the issue during the computation period are published in a newspaper of general circulation throughout the United States, not later than the last day of the month following the end of the calendar quarter in which the computation period ends, The issuer or agent keeps books and records that list for each transaction during the computation period the date of settlement of the transaction, the name and address of the broker or dealer making the market in which the transaction occurred, and the trading price and volume, and The issuer or agent permits the Internal Revenue Service to review the books and records described in item (4) with respect to transactions during the computation period upon receiving reasonable notice. 1040v tax form   An interdealer quotation system is any system of general circulation to brokers and dealers that regularly disseminates quotations of obligations by two or more identified brokers or dealers who are not related to either the issuer or agent who computes the average trading price of the security. 1040v tax form A quotation sheet prepared and distributed by a broker or dealer in the regular course of business and containing only quotations of that broker or dealer is not an interdealer quotation system. 1040v tax form   The average trading price is the average price of all transactions (weighted by volume), other than original issue or redemption transactions, conducted through a United States office of a broker or dealer who maintains a market in the issue of the security during the computation period. 1040v tax form Bid and asked quotations are not taken into account. 1040v tax form   The computation period is weekly during October through December and monthly during January through September. 1040v tax form The weekly computation periods during October through December begin with the first Monday in October and end with the first Sunday following the last Monday in December. 1040v tax form Nonpublicly traded stock. 1040v tax form   If you contribute nonpublicly traded stock, for which you claim a deduction of $10,000 or less, a qualified appraisal is not required. 1040v tax form However, you must attach Form 8283 to your tax return, with Section B, Parts I and IV, completed. 1040v tax form Deductions of More Than $500,000 If you claim a deduction of more than $500,000 for a donation of property, you must attach a qualified appraisal of the property to your return. 1040v tax form This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual property. 1040v tax form If you do not attach the appraisal, you cannot deduct your contribution, unless your failure to attach the appraisal is due to reasonable cause and not to willful neglect. 1040v tax form Qualified Appraisal Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser. 1040v tax form You must also complete Form 8283, Section B, and attach it to your tax return. 1040v tax form See Deductions of More Than $5,000, earlier. 1040v tax form A qualified appraisal is an appraisal document that: Is made, signed, and dated by a qualified appraiser (defined later) in accordance with generally accepted appraisal standards, Meets the relevant requirements of Regulations section 1. 1040v tax form 170A-13(c)(3) and Notice 2006-96, 2006-46 I. 1040v tax form R. 1040v tax form B. 1040v tax form 902 (available at www. 1040v tax form irs. 1040v tax form gov/irb/2006-46_IRB/ar13. 1040v tax form html), Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property, Does not involve a prohibited appraisal fee, and Includes certain information (covered later). 1040v tax form You must receive the qualified appraisal before the due date, including extensions, of the return on which a charitable contribution deduction is first claimed for the donated property. 1040v tax form If the deduction is first claimed on an amended return, the qualified appraisal must be received before the date on which the amended return is filed. 1040v tax form Form 8283, Section B, must be attached to your tax return. 1040v tax form Generally, you do not need to attach the qualified appraisal itself, but you should keep a copy as long as it may be relevant under the tax law. 1040v tax form There are four exceptions. 1040v tax form If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the appraisal. 1040v tax form See Paintings, Antiques, and Other Objects of Art, earlier. 1040v tax form If you claim a deduction of more than $500,000 for a donation of property, you must attach the appraisal. 1040v tax form See Deductions of More Than $500,000, earlier. 1040v tax form If you claim a deduction of more than $500 for an article of clothing, or a household item, that is not in good used condition or better, that you donated after August 17, 2006, you must attach the appraisal. 1040v tax form See Deduction over $500 for certain clothing or household items, earlier. 1040v tax form If you claim a deduction in a tax year beginning after August 17, 2006, for an easement or other restriction on the exterior of a building in a historic district, you must attach the appraisal. 1040v tax form See Building in registered historic district, earlier. 1040v tax form Prohibited appraisal fee. 1040v tax form   Generally, no part of the fee arrangement for a qualified appraisal can be based on a percentage of the appraised value of the property. 1040v tax form If a fee arrangement is based on what is allowed as a deduction, after Internal Revenue Service examination or otherwise, it is treated as a fee based on a percentage of appraised value. 1040v tax form However, appraisals are not disqualified when an otherwise prohi
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Contact My Local Office in Massachusetts

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

 City Street Address  Days/Hours of Service  Telephone* 
Boston  JFK Federal Building
15 New Sudbury St.
Boston, MA  02203 

Monday-Friday - 8:30 a.m.- 4:30 p.m.


Services Provided

(617) 316-2850 
Brockton  120 Liberty St.
Brockton, MA 02301 

Monday - Friday - 8:30 a.m.- 4:30 p.m.
**(Closed for lunch 1:00 p.m. – 2:00 p.m. from 1/2 - 4/15)** 
 

Services Provided

(508) 586-4671 
Fitchburg  881 Main St.
Fitchburg, MA 01420 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(978) 342-0016
Hyannis  75 Perseverance Way
Hyannis, MA 02601 

Monday - Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(508) 775-0029 
Pittsfield  78 Center St.
Pittsfield, MA 01201 

Monday and Tuesday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(413) 499-1573 
Springfield  1550 Main St.
Springfield, MA 01103 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch from 12:00 noon - 1:00 p.m.)
 

Services Provided

(413) 788-0284 
Stoneham  1 Montvale Ave.
Stoneham, MA 02180 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(781) 835-4350 
Worcester  120 Front St.
Worcester, MA 01608 

Monday-Friday - 8:30 a.m.- 4:30 p.m.

 

 Services Provided

(508) 793-8227 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (617) 316-2690 in Boston or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
25 New Sudbury St. Stop 20826
Boston, MA 02203

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 1040v Tax Form

1040v tax form 3. 1040v tax form   Filing Information for Individuals in Certain U. 1040v tax form S. 1040v tax form Possessions Table of Contents American SamoaWhere To Get Forms and Information Which Returns To File Special Rules for American Samoa Double Taxation The Commonwealth of Puerto RicoWhere To Get Forms and Information Which Returns To File Special Rules for Puerto Rico Double Taxation The Commonwealth of the Northern Mariana IslandsWhere To Get Forms and Information Which Return To File Special Rules for the CNMI Double Taxation GuamWhere To Get Forms and Information Which Return To File Special Rules for Guam Double Taxation The U. 1040v tax form S. 1040v tax form Virgin IslandsWhere To Get Forms and Information Which Return To File Special Rules for the USVI Double Taxation If you have income from American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, you may have to file a tax return with the tax department of that possession. 1040v tax form Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. 1040v tax form S. 1040v tax form Internal Revenue Service. 1040v tax form This chapter covers the general rules for filing returns in the five possessions. 1040v tax form You must first determine if you are a bona fide resident of the relevant possession. 1040v tax form See chapter 1 for a discussion of the requirements you must meet. 1040v tax form You should ask for forms and advice about the filing of possession tax returns from that possession's tax department, not the Internal Revenue Service. 1040v tax form Contact information is listed in this chapter under the heading for each possession. 1040v tax form American Samoa American Samoa has its own separate and independent tax system. 1040v tax form Although its tax laws are modeled on the U. 1040v tax form S. 1040v tax form Internal Revenue Code, there are certain differences. 1040v tax form Where To Get Forms and Information Requests for advice about matters connected with Samoan taxation should be sent to: American Samoa Government Tax Office  Executive Office Building First Floor Pago Pago, AS 96799 The phone number is (684) 633-4181. 1040v tax form The fax number is (684) 633-1513. 1040v tax form You can get forms and publications at www. 1040v tax form americansamoa. 1040v tax form gov. 1040v tax form The addresses and phone numbers listed above are subject to change. 1040v tax form Which Returns To File Your residency status and your source of income with regard to American Samoa determine whether you file your return and pay your tax to American Samoa, to the United States, or to both. 1040v tax form In addition to the information below that is categorized by residency status, the Special Rules for American Samoa section (later) contains important information for determining the correct forms to file. 1040v tax form Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. 1040v tax form S. 1040v tax form tax on their American Samoa source income. 1040v tax form U. 1040v tax form S. 1040v tax form citizen or resident alien. 1040v tax form   If you are a U. 1040v tax form S. 1040v tax form citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. 1040v tax form An American Samoa tax return reporting your gross income from worldwide sources. 1040v tax form If you report non-American Samoa source income on your American Samoa tax return, you can claim a credit against your American Samoa tax liability for income taxes paid on that income to the United States, a foreign country, or another possession. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. 1040v tax form However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. 1040v tax form S. 1040v tax form Government employees under Special Rules for American Samoa, later). 1040v tax form To exclude American Samoa source income, attach a completed Form 4563 to your U. 1040v tax form S. 1040v tax form tax return (see Form 4563 for more information). 1040v tax form If you are excluding American Samoa source income on your U. 1040v tax form S. 1040v tax form tax return, you will not be allowed any deductions from gross income or credits against tax that are directly or indirectly allocable to the exempt income. 1040v tax form For more information, see Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form Nonresident alien. 1040v tax form   If you are a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. 1040v tax form An American Samoa tax return reporting worldwide income. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040, U. 1040v tax form S. 1040v tax form Individual Income Tax Return) reporting income from worldwide sources, but excluding American Samoa source income other than amounts for services performed as an employee of the United States or any of its agencies. 1040v tax form For more information, see U. 1040v tax form S. 1040v tax form Government employees under Special Rules for American Samoa, later. 1040v tax form To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. 1040v tax form S. 1040v tax form tax return (see Form 4563 , below, for more information). 1040v tax form For all other tax purposes, however, you will be treated as a nonresident alien individual. 1040v tax form For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. 1040v tax form There are also limitations on what deductions and credits are allowed. 1040v tax form See Publication 519 for more information. 1040v tax form Form 4563. 1040v tax form   If you must file a U. 1040v tax form S. 1040v tax form income tax return and you qualify to exclude any of your income from American Samoa, claim the exclusion by completing Form 4563 and attaching it to your Form 1040. 1040v tax form Form 4563 cannot be filed by itself. 1040v tax form There is an example of a filled-in Form 4563 in chapter 5. 1040v tax form   If you are a bona fide resident of American Samoa during the entire tax year and you are not including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 4563) to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 4563) to: Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. 1040v tax form Self-employment tax. 1040v tax form   If you are not required to file a U. 1040v tax form S. 1040v tax form tax return but have income that is effectively connected with a trade or business in American Samoa, you must file Form 1040-SS with the United States. 1040v tax form On this form you will report your self-employment income to the United States and, if necessary, pay self-employment tax on that income. 1040v tax form Additional Medicare Tax. 1040v tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040v tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040v tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form Net Investment Income Tax. 1040v tax form   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. 1040v tax form 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040v tax form The NIIT will apply to a bona fide resident of American Samoa if a taxpayer has modified adjusted gross income from sources outside of American Samoa that exceeds a specified threshold amount, e. 1040v tax form g. 1040v tax form , $200,000 for single filers. 1040v tax form The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040v tax form See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. 1040v tax form Estimated tax payments. 1040v tax form   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES, Estimated Tax for Individuals. 1040v tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040v tax form irs. 1040v tax form gov/e-pay. 1040v tax form   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. 1040v tax form Not a Bona Fide Resident of American Samoa An individual who is not a bona fide resident of American Samoa for the tax year generally files both U. 1040v tax form S. 1040v tax form and American Samoa tax returns, and claims a foreign tax credit on the U. 1040v tax form S. 1040v tax form return for taxes paid to American Samoa. 1040v tax form U. 1040v tax form S. 1040v tax form citizen or resident alien. 1040v tax form   If you are a U. 1040v tax form S. 1040v tax form citizen or resident alien but not a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. 1040v tax form An American Samoa tax return reporting only your income from sources within American Samoa. 1040v tax form Wages for services performed in American Samoa, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from sources within American Samoa. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return reporting your income from worldwide sources. 1040v tax form You can take a credit against your U. 1040v tax form S. 1040v tax form tax liability if you paid income taxes to American Samoa (or other possession or foreign country) and reported income from those sources on your U. 1040v tax form S. 1040v tax form tax return. 1040v tax form De minimis exception to determining source of income. 1040v tax form   In certain situations you will not have income from a possession. 1040v tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040v tax form Nonresident alien. 1040v tax form   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of American Samoa for the entire tax year, you generally must file the following returns. 1040v tax form An American Samoa tax return reporting only your income from sources within American Samoa. 1040v tax form In this situation, wages for services performed in American Samoa, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from sources within American Samoa. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040NR, U. 1040v tax form S. 1040v tax form Nonresident Alien Income Tax Return) reporting U. 1040v tax form S. 1040v tax form source income according to the rules for a nonresident alien. 1040v tax form See the Instructions for Form 1040NR. 1040v tax form   If you are not a bona fide resident of American Samoa during the entire tax year, and you are not including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to: Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. 1040v tax form Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. 1040v tax form U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. 1040v tax form Civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces ), your tax residence is American Samoa, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. 1040v tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from American Samoa is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040v tax form S. 1040v tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040v tax form If you have income from American Samoa other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), contact the local tax administration for guidance. 1040v tax form U. 1040v tax form S. 1040v tax form Government employees. 1040v tax form   If you are employed in American Samoa by the U. 1040v tax form S. 1040v tax form Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. 1040v tax form Whether you are subject to tax by American Samoa on your non-American Samoa source income depends on your status in American Samoa as a bona fide resident. 1040v tax form   Wages and salaries paid to employees of the U. 1040v tax form S. 1040v tax form Government and its agencies are also subject to U. 1040v tax form S. 1040v tax form federal income tax. 1040v tax form These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. 1040v tax form   For tax years ending after April 9, 2008, wages and salaries paid to bona fide residents by the Government of American Samoa can be excluded on the U. 1040v tax form S. 1040v tax form tax return. 1040v tax form   If you report government wages on both your U. 1040v tax form S. 1040v tax form and American Samoa tax returns, you can take a credit on your U. 1040v tax form S. 1040v tax form tax return for income taxes paid or accrued to American Samoa. 1040v tax form Figure the credit on Form 1116, and attach that form to your U. 1040v tax form S. 1040v tax form tax return, Form 1040. 1040v tax form Show your wages paid for services performed in American Samoa on Form 1116, line 1a, enter “American Samoa” on line g, and check box b above Part I. 1040v tax form Moving expense deduction. 1040v tax form   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. 1040v tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040v tax form S. 1040v tax form earned income. 1040v tax form   If your move was to American Samoa, report your deduction for moving expenses as follows. 1040v tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your American Samoa tax return. 1040v tax form If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. 1040v tax form S. 1040v tax form tax returns. 1040v tax form Also, for purposes of a tax credit against your U. 1040v tax form S. 1040v tax form tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. 1040v tax form   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. 1040v tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. 1040v tax form See Double Taxation in chapter 4. 1040v tax form The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. 1040v tax form Although it is modeled after the U. 1040v tax form S. 1040v tax form system, there are differences in law and tax rates. 1040v tax form Where To Get Forms and Information Requests for information about the filing of Puerto Rico tax returns should be addressed to: Departamento de Hacienda Negociado de Asistencia Contributiva  P. 1040v tax form O. 1040v tax form Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. 1040v tax form    To obtain Puerto Rico tax forms, contact the Forms and Publications Division Office at the above address or call (787) 722-0216, option #7. 1040v tax form You can access the Hacienda website at www. 1040v tax form hacienda. 1040v tax form gobierno. 1040v tax form pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. 1040v tax form gobierno. 1040v tax form pr. 1040v tax form The addresses and phone numbers listed above are subject to change. 1040v tax form Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. 1040v tax form The income reported on each return depends on your residency status in Puerto Rico. 1040v tax form To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. 1040v tax form Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. 1040v tax form U. 1040v tax form S. 1040v tax form citizen or resident alien. 1040v tax form   If you are a U. 1040v tax form S. 1040v tax form citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. 1040v tax form A Puerto Rico tax return reporting income from worldwide sources. 1040v tax form If you report U. 1040v tax form S. 1040v tax form source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return reporting income from worldwide sources, but excluding Puerto Rico source income. 1040v tax form However, see U. 1040v tax form S. 1040v tax form Government employees under Special Rules for Puerto Rico, later, for an exception. 1040v tax form If you are excluding Puerto Rico income on your U. 1040v tax form S. 1040v tax form tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. 1040v tax form For more information, see Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form If all of your income is from Puerto Rico sources, you are not required to file a U. 1040v tax form S. 1040v tax form tax return. 1040v tax form However, if you have self-employment income, see Self-employment tax , later. 1040v tax form U. 1040v tax form S. 1040v tax form citizen only. 1040v tax form   If you are a U. 1040v tax form S. 1040v tax form citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. 1040v tax form In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U. 1040v tax form S. 1040v tax form Government or its agencies) that you earned before the date you changed your residence. 1040v tax form For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. 1040v tax form Nonresident alien. 1040v tax form   If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. 1040v tax form A Puerto Rico tax return reporting income from worldwide sources. 1040v tax form If you report U. 1040v tax form S. 1040v tax form source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rico source income (other than amounts for services performed as an employee of the United States or any of its agencies). 1040v tax form For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. 1040v tax form For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. 1040v tax form There are also limitations on what deductions and credits are allowed. 1040v tax form See Publication 519 for more information. 1040v tax form Self-employment tax. 1040v tax form   If you have no U. 1040v tax form S. 1040v tax form filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040v tax form Additional Medicare Tax. 1040v tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040v tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040v tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form Net Investment Income Tax. 1040v tax form   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. 1040v tax form 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040v tax form The NIIT will apply to a bona fide resident of Puerto Rico if a taxpayer has modified adjusted gross income from sources outside of Puerto Rico that exceeds a specified threshold amount, e. 1040v tax form g. 1040v tax form , $200,000 for single filers. 1040v tax form The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040v tax form See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. 1040v tax form Estimated tax payments. 1040v tax form   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES (or Form 1040-ES(PR)). 1040v tax form   To pay by check or money order, send your payment with the Form 1040-ES (or Form 1040-ES(PR)) payment voucher to: Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040v tax form irs. 1040v tax form gov/e-pay. 1040v tax form   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. 1040v tax form Not a Bona Fide Resident of Puerto Rico An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States. 1040v tax form U. 1040v tax form S. 1040v tax form citizen or resident alien. 1040v tax form   If you are a U. 1040v tax form S. 1040v tax form citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. 1040v tax form A Puerto Rico tax return reporting only your income from Puerto Rico sources. 1040v tax form Wages for services performed in Puerto Rico, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from Puerto Rico sources. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return reporting income from worldwide sources. 1040v tax form Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is not exempt from U. 1040v tax form S. 1040v tax form taxes (see chapter 4 for more information). 1040v tax form Nonresident alien. 1040v tax form   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns. 1040v tax form A Puerto Rico tax return reporting only your income from Puerto Rico sources. 1040v tax form Wages for services performed in Puerto Rico, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from Puerto Rico sources. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040NR) according to the rules for a nonresident alien. 1040v tax form See the Instructions for Form 1040NR. 1040v tax form De minimis exception to determining source of income. 1040v tax form   In certain situations you will not have income from a possession. 1040v tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040v tax form Use the addresses listed below to file your U. 1040v tax form S. 1040v tax form and Puerto Rico income tax returns. 1040v tax form If you are not including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to: Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA If you request a refund on your Puerto Rico return, send your Puerto Rico tax return and all attachments to: Departamento de Hacienda P. 1040v tax form O. 1040v tax form Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. 1040v tax form O. 1040v tax form Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. 1040v tax form S. 1040v tax form and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. 1040v tax form U. 1040v tax form S. 1040v tax form Government employees. 1040v tax form   Wages and cost-of-living allowances paid by the U. 1040v tax form S. 1040v tax form Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. 1040v tax form However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. 1040v tax form S. 1040v tax form tax. 1040v tax form In order to claim this exclusion, you must: Include with your Puerto Rico tax return evidence to show the amount received during the year, and Be in full compliance with your Puerto Rico tax responsibilities. 1040v tax form   These wages are also subject to U. 1040v tax form S. 1040v tax form tax, but the cost-of-living allowances are excludable. 1040v tax form A foreign tax credit is available in order to avoid double taxation. 1040v tax form U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. 1040v tax form Civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces ), your tax residence is Puerto Rico, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. 1040v tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Puerto Rico is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040v tax form S. 1040v tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040v tax form If you have income from Puerto Rico other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1 ), contact the Hacienda for guidance. 1040v tax form Income from sources outside Puerto Rico and the United States. 1040v tax form   If you are a U. 1040v tax form S. 1040v tax form citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. 1040v tax form In addition to your Puerto Rico and U. 1040v tax form S. 1040v tax form tax returns, you may also have to file a return with the country or possession from which your outside income was derived. 1040v tax form To avoid double taxation, a foreign tax credit is generally available for either the U. 1040v tax form S. 1040v tax form or Puerto Rico return. 1040v tax form Example. 1040v tax form Thomas Red is a bona fide resident of Puerto Rico and a U. 1040v tax form S. 1040v tax form citizen. 1040v tax form He traveled to the Dominican Republic and worked in the construction industry for 1 month. 1040v tax form His wages were $20,000. 1040v tax form Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. 1040v tax form He may also have to file a tax return with the Dominican Republic. 1040v tax form Moving expense deduction. 1040v tax form   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. 1040v tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040v tax form S. 1040v tax form earned income. 1040v tax form   If your move was to Puerto Rico, report your deduction for moving expenses as follows. 1040v tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rico tax return. 1040v tax form If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. 1040v tax form S. 1040v tax form tax returns. 1040v tax form Also, for purposes of a tax credit against your U. 1040v tax form S. 1040v tax form tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. 1040v tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040v tax form Additional child tax credit. 1040v tax form   If you are not required to file a U. 1040v tax form S. 1040v tax form income tax return, this credit is available only if you meet all three of the following conditions. 1040v tax form You were a bona fide resident of Puerto Rico during the entire tax year. 1040v tax form Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. 1040v tax form You had three or more qualifying children. 1040v tax form (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. 1040v tax form ) If your income exceeds certain levels, you may be disqualified from receiving this credit. 1040v tax form Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. 1040v tax form Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. 1040v tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. 1040v tax form See Double Taxation in chapter 4. 1040v tax form The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its own tax system based partly on the same tax laws and tax rates that apply to the United States and partly on local taxes imposed by the CNMI government. 1040v tax form Where To Get Forms and Information Requests for advice about CNMI residency and tax matters should be addressed to: Commonwealth of the Northern Mariana Islands  Division of Revenue and Taxation P. 1040v tax form O. 1040v tax form Box 5234 CHRB Dandan Commercial Center First Floor Rm #8  Saipan, MP 96950 You can order forms and publications by calling (670) 664-1000. 1040v tax form You can order forms and publications through the fax at (670) 664-1015. 1040v tax form You can get forms and publications at www. 1040v tax form cnmidof. 1040v tax form net. 1040v tax form The addresses and phone numbers listed above are subject to change. 1040v tax form Which Return To File In general, all individuals with income from the CNMI will file only one return, either to the CNMI or to the United States. 1040v tax form Your residency status with regard to the CNMI determines which return you will file. 1040v tax form Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. 1040v tax form Bona Fide Resident of the CNMI If you are a U. 1040v tax form S. 1040v tax form citizen, resident alien, or nonresident alien and a bona fide resident of the CNMI during the entire tax year, file your income tax return with the CNMI. 1040v tax form Include income from worldwide sources on your CNMI return. 1040v tax form In determining your total tax payments, include all income tax withheld by either the CNMI or the United States, any credit for an overpayment of income tax to either the CNMI or the United States, and any payments of estimated tax to either the CNMI or the United States. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form Generally, if you properly file your return with, and fully pay your income tax to, the CNMI, then you are not liable for filing an income tax return with, or for paying tax to, the United States for the tax year. 1040v tax form However, if you were self-employed in 2013, see Self-employment tax , later. 1040v tax form Example. 1040v tax form David Gold was a bona fide resident of the CNMI for 2013. 1040v tax form He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. 1040v tax form S. 1040v tax form corporations that carry on business mainly in the United States. 1040v tax form He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. 1040v tax form He reports his total income of $34,000 on the CNMI return. 1040v tax form   If you are a bona fide resident of the CNMI for the entire tax year, send your return and all attachments to the Division of Revenue and Taxation at the address given earlier. 1040v tax form U. 1040v tax form S. 1040v tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the CNMI) If you have income from sources within the CNMI and are a U. 1040v tax form S. 1040v tax form citizen or resident alien, but you are not a bona fide resident of the CNMI during the entire tax year, file your income tax return with the United States. 1040v tax form Include income from worldwide sources on your U. 1040v tax form S. 1040v tax form return. 1040v tax form In determining your total tax payments, include all income tax withheld by either the United States or the CNMI, any credit for an overpayment of income tax to either the United States or the CNMI, and any payments of estimated tax to either the United States or the CNMI. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form Note. 1040v tax form You may also need to complete Form 5074. 1040v tax form You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. 1040v tax form Form 5074. 1040v tax form   If you file a U. 1040v tax form S. 1040v tax form income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within the CNMI. 1040v tax form   The United States and the CNMI use this form to divide your income taxes. 1040v tax form   There is an example of a filled-in Form 5074 in chapter 5. 1040v tax form De minimis exception to determining source of income. 1040v tax form   In certain situations you will not have income from a possession. 1040v tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040v tax form Citizen or resident alien of the United States but not a bona fide resident of the CNMI. 1040v tax form   If you are a citizen or resident alien of the United States but not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to: Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the CNMI for the entire tax year, you generally must file the following returns. 1040v tax form A CNMI tax return reporting only your income from sources within the CNMI. 1040v tax form In this situation, wages for services performed in the CNMI, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from sources within the CNMI. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040NR) reporting U. 1040v tax form S. 1040v tax form source income according to the rules for a nonresident alien. 1040v tax form See the instructions for Form 1040NR. 1040v tax form If you are not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to:  Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA Send your CNMI tax return and all attachments to:  Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040v tax form O. 1040v tax form Box 5234 CHRB Saipan, MP 96950 Citizen of the CNMI If you are a citizen of the CNMI (meaning that you were born or naturalized in the CNMI) but not otherwise a U. 1040v tax form S. 1040v tax form citizen or a U. 1040v tax form S. 1040v tax form resident alien during the tax year, file your income tax return with the CNMI. 1040v tax form Include income from worldwide sources on your CNMI return. 1040v tax form Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040v tax form O. 1040v tax form Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. 1040v tax form Joint return. 1040v tax form   If you file a joint return, file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040v tax form If the spouse with the greater AGI is a bona fide resident of the CNMI during the entire tax year, file the joint return with the CNMI. 1040v tax form If the spouse with the greater AGI is a U. 1040v tax form S. 1040v tax form citizen or resident alien but not a bona fide resident of the CNMI during the entire tax year, file your joint return with the United States. 1040v tax form For this purpose, income is determined without regard to community property laws. 1040v tax form Example. 1040v tax form Marsha Blue, a U. 1040v tax form S. 1040v tax form citizen, was a resident of the United States, and her spouse, a citizen of the CNMI, was a bona fide resident of the CNMI during the entire tax year. 1040v tax form Marsha earned $65,000 as a computer programmer in the United States. 1040v tax form Her spouse earned $20,000 as an artist in the CNMI. 1040v tax form Marsha and her spouse will file a joint return. 1040v tax form Because Marsha has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. 1040v tax form U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If you are a member of the U. 1040v tax form S. 1040v tax form Armed Forces who qualified as a bona fide resident of the CNMI in a prior tax year, your absence from the CNMI solely in compliance with military orders will not change your bona fide residency. 1040v tax form If you did not qualify as a bona fide resident of the CNMI in a prior tax year, your presence in the CNMI solely in compliance with military orders will not qualify you as a bona fide resident of the CNMI. 1040v tax form Civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces ), your tax residence is the CNMI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040v tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the CNMI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040v tax form S. 1040v tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040v tax form If you have income from the CNMI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. 1040v tax form S. 1040v tax form tax return. 1040v tax form Moving expense deduction. 1040v tax form   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. 1040v tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040v tax form S. 1040v tax form earned income. 1040v tax form   If your move was to the CNMI, report your deduction for moving expenses as follows. 1040v tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. 1040v tax form If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. 1040v tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040v tax form Foreign tax credit. 1040v tax form   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. 1040v tax form S. 1040v tax form income tax return for tax paid to the CNMI. 1040v tax form Self-employment tax. 1040v tax form   If you have no U. 1040v tax form S. 1040v tax form filing requirement, but have income that is effectively connected with a trade or business in the CNMI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040v tax form Additional Medicare Tax. 1040v tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040v tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040v tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form Estimated tax payments. 1040v tax form   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax to the IRS, get Form 1040-ES. 1040v tax form Payment of estimated tax. 1040v tax form   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. 1040v tax form Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. 1040v tax form However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. 1040v tax form   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). 1040v tax form For this purpose, income is determined without regard to community property laws. 1040v tax form Early payment. 1040v tax form   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. 1040v tax form If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. 1040v tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040v tax form irs. 1040v tax form gov/e-pay. 1040v tax form   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. 1040v tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. 1040v tax form See Double Taxation in chapter 4. 1040v tax form Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. 1040v tax form Where To Get Forms and Information Requests for advice about Guam residency and tax matters should be addressed to: Department of Revenue and Taxation Government of Guam P. 1040v tax form O. 1040v tax form Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. 1040v tax form You can order forms and publications through the fax at (671) 633-2643. 1040v tax form You can get forms and publications at www. 1040v tax form guamtax. 1040v tax form com. 1040v tax form The addresses and phone numbers listed above are subject to change. 1040v tax form Which Return To File Bona fide residents of Guam are subject to special U. 1040v tax form S. 1040v tax form tax rules. 1040v tax form In general, all individuals with income from Guam will file only one return—either to Guam or the United States. 1040v tax form Bona Fide Resident of Guam If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. 1040v tax form This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. 1040v tax form Include income from worldwide sources on your Guam return. 1040v tax form In determining your total tax payments, include all income tax withheld by either Guam or the United States, any credit for an overpayment of income tax to either Guam or the United States, and any payments of estimated tax to either Guam or the United States. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form Generally, if you properly file your return with, and fully pay your income tax to, Guam, then you are not liable for filing an income tax return with, or for paying tax to, the United States. 1040v tax form However, if you were self-employed in 2013, see Self-employment tax , later. 1040v tax form Example. 1040v tax form Gary Barker was a bona fide resident of Guam for 2013. 1040v tax form He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. 1040v tax form S. 1040v tax form corporations that carry on business mainly in the United States. 1040v tax form He must file a 2013 income tax return with the Government of Guam. 1040v tax form He reports his total income of $27,000 on the Guam return. 1040v tax form If you are a bona fide resident of Guam for the entire tax year, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. 1040v tax form O. 1040v tax form Box 23607 GMF, GU 96921 U. 1040v tax form S. 1040v tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) If you have income from sources within Guam and are a U. 1040v tax form S. 1040v tax form citizen or resident alien, but you are not a bona fide resident of Guam during the entire tax year, file your income tax return with the United States. 1040v tax form Include income from worldwide sources on your U. 1040v tax form S. 1040v tax form return. 1040v tax form In determining your total tax payments, include all income tax withheld by either the United States or Guam, any credit for an overpayment of income tax to either the United States or Guam, and any payments of estimated tax to either the United States or Guam. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form You may also need to complete Form 5074. 1040v tax form You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. 1040v tax form Form 5074. 1040v tax form   If you file a U. 1040v tax form S. 1040v tax form income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within Guam. 1040v tax form   The United States and Guam use this form to divide your income taxes. 1040v tax form   See the Illustrated Example of Form 5074 in chapter 5. 1040v tax form De minimis exception to determining source of income. 1040v tax form   In certain situations you will not have income from a possession. 1040v tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040v tax form   If you are a citizen or resident alien of the United States but not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 5074) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of Guam) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Guam for the entire tax year, you generally must file the following returns. 1040v tax form A Guam tax return reporting only your income from sources within Guam. 1040v tax form In this situation, wages for services performed in Guam, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from sources within Guam. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040NR) reporting U. 1040v tax form S. 1040v tax form source income according to the rules for a nonresident alien. 1040v tax form See the instructions for Form 1040NR. 1040v tax form If you are not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments to:  Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. 1040v tax form O. 1040v tax form Box 23607 GMF, GU 96921 Citizen of Guam If you are a citizen of Guam (meaning that you were born or naturalized in Guam) but not otherwise a U. 1040v tax form S. 1040v tax form citizen or a U. 1040v tax form S. 1040v tax form resident alien during the tax year, file your income tax return with Guam. 1040v tax form Include income from worldwide sources on your Guam return. 1040v tax form Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. 1040v tax form O. 1040v tax form Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. 1040v tax form Joint return. 1040v tax form   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040v tax form If the spouse with the greater AGI is a bona fide resident of Guam during the entire tax year, file the joint return with Guam. 1040v tax form If the spouse with the greater AGI is a U. 1040v tax form S. 1040v tax form citizen or resident alien but not a bona fide resident of Guam during the entire tax year, file the joint return with the United States. 1040v tax form For this purpose, income is determined without regard to community property laws. 1040v tax form Example. 1040v tax form Bill Whiting, a U. 1040v tax form S. 1040v tax form citizen, was a resident of the United States, and his spouse, a citizen of Guam, was a bona fide resident of Guam during the entire tax year. 1040v tax form Bill earned $45,000 as an engineer in the United States. 1040v tax form His spouse earned $15,000 as a teacher in Guam. 1040v tax form Bill and his spouse will file a joint return. 1040v tax form Because Bill has the greater AGI, he and his spouse must file their return with the United States and report the entire $60,000 on that return. 1040v tax form U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If you are a member of the U. 1040v tax form S. 1040v tax form Armed Forces who qualified as a bona fide resident of Guam in a prior tax year, your absence from Guam solely in compliance with military orders will not change your bona fide residency. 1040v tax form If you did not qualify as a bona fide resident of Guam in a prior tax year, your presence in Guam solely in compliance with military orders will not qualify you as a bona fide resident of Guam. 1040v tax form Civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040v tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Guam is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040v tax form S. 1040v tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040v tax form If you have income from Guam other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. 1040v tax form S. 1040v tax form tax return. 1040v tax form Moving expense deduction. 1040v tax form   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. 1040v tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040v tax form S. 1040v tax form earned income. 1040v tax form   If your move was to Guam, report your deduction for moving expenses as follows. 1040v tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. 1040v tax form If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. 1040v tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040v tax form Foreign tax credit. 1040v tax form   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. 1040v tax form S. 1040v tax form income tax return for tax paid to Guam. 1040v tax form Self-employment tax. 1040v tax form   If you have no U. 1040v tax form S. 1040v tax form filing requirement, but have income that is effectively connected with a trade or business in Guam, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040v tax form Additional Medicare Tax. 1040v tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040v tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040v tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form Estimated tax payments. 1040v tax form   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. 1040v tax form Payment of estimated tax. 1040v tax form   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. 1040v tax form Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. 1040v tax form However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. 1040v tax form   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). 1040v tax form For this purpose, income is determined without regard to community property laws. 1040v tax form Early payment. 1040v tax form   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. 1040v tax form If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. 1040v tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Department of Revenue and Taxation Government of Guam P. 1040v tax form O. 1040v tax form Box 23607 GMF, GU 96921   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040v tax form irs. 1040v tax form gov/e-pay. 1040v tax form   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. 1040v tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and Guam. 1040v tax form See Double Taxation in chapter 4. 1040v tax form The U. 1040v tax form S. 1040v tax form Virgin Islands The U. 1040v tax form S. 1040v tax form Virgin Islands has its own tax system based on the same tax laws and tax rates that apply in the United States. 1040v tax form An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI. 1040v tax form Where To Get Forms and Information For information about filing your U. 1040v tax form S. 1040v tax form Virgin Islands tax return or about Form 1040INFO, in St. 1040v tax form Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. 1040v tax form Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. 1040v tax form You can order forms and publications through the fax at (340) 774-2672. 1040v tax form For information about filing your U. 1040v tax form S. 1040v tax form Virgin Islands tax return or about Form 1040INFO, in St. 1040v tax form Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. 1040v tax form I. 1040v tax form 00820–4421 You can order forms and publications by calling (340) 773-1040. 1040v tax form You can order forms and publications through the fax at (340) 773-1006. 1040v tax form You can access the USVI website at www. 1040v tax form viirb. 1040v tax form com. 1040v tax form The addresses and phone numbers listed above are subject to change. 1040v tax form Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. 1040v tax form U. 1040v tax form S. 1040v tax form citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of the tax to each jurisdiction. 1040v tax form Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. 1040v tax form S. 1040v tax form citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. 1040v tax form Include your worldwide income on your USVI return. 1040v tax form In determining your total tax payments, take into account all income tax withheld by either the USVI or the United States, any credit for an overpayment of income tax to either the USVI or the United States, and any payments of estimated tax to either the USVI or the United States. 1040v tax form Pay any balance of tax due with your tax return. 1040v tax form Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. 1040v tax form S. 1040v tax form income tax. 1040v tax form You generally do not have to file with the United States for any tax year in which you are a bona fide resident of the USVI during the entire tax year, provided you report and pay tax on your income from all sources to the USVI and identify the source(s) of the income on the return. 1040v tax form However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. 1040v tax form For more information, see Self-employment tax under Special Rules for the USVI, later. 1040v tax form Form 1040INFO. 1040v tax form   If you are a bona fide resident of the USVI and have non-USVI source income, you must also file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands Bureau of Internal Revenue. 1040v tax form Attach Form 1040INFO to your USVI tax return before filing. 1040v tax form You can get Form 1040INFO by contacting the address or website given earlier. 1040v tax form   If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040v tax form Thomas, VI 00802 U. 1040v tax form S. 1040v tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. 1040v tax form S. 1040v tax form citizen or resident alien but not a bona fide resident of the USVI during the entire tax year, you must file your original Form 1040 with the United States and an identical copy of that return with the USVI if you have: Income from sources in the USVI, or Income effectively connected with the conduct of a trade or business in the USVI. 1040v tax form File your original Form 1040 with the United States and file a signed copy of the U. 1040v tax form S. 1040v tax form return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. 1040v tax form Use Form 8689 to figure the amount of tax you must pay to the USVI. 1040v tax form Form 8689. 1040v tax form   Complete this form and attach it to both the return you file with the United States and the copy you file with the USVI. 1040v tax form Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. 1040v tax form S. 1040v tax form return (after certain adjustments) × USVI AGI Worldwide AGI     Pay any tax due to the USVI when you file your return with the Virgin Islands Bureau of Internal Revenue. 1040v tax form To receive credit on your U. 1040v tax form S. 1040v tax form return for taxes paid to the USVI, include the amounts from Form 8689, lines 40 and 45, in the total on Form 1040, line 72. 1040v tax form On the dotted line next to line 72, enter “Form 8689” and show the amounts. 1040v tax form   See the illustrated example in chapter 5. 1040v tax form De minimis exception to determining source of income. 1040v tax form   In certain situations you will not have income from a possession. 1040v tax form See De minimis exception under Compensation for Labor or Personal Services in chapter 2. 1040v tax form   If you are not a bona fide resident of the USVI during the entire tax year, but you have USVI source income, and you are not including a check or a money order, file Form 1040 and all attachments (including Form 8689) with the:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. 1040v tax form S. 1040v tax form Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040v tax form Thomas, VI 00802 Nonresident Alien (Other Than a Bona Fide Resident of the USVI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the USVI for the entire tax year, you generally must file the following returns. 1040v tax form A USVI tax return reporting only your income from sources within the USVI. 1040v tax form In this situation, wages for services performed in the USVI, whether for a private employer, the U. 1040v tax form S. 1040v tax form Government, or otherwise, is income from sources within the USVI. 1040v tax form A U. 1040v tax form S. 1040v tax form tax return (Form 1040NR) reporting U. 1040v tax form S. 1040v tax form source income according to the rules for a nonresident alien. 1040v tax form See the instructions for Form 1040NR. 1040v tax form   If you are not a bona fide resident of the USVI during the entire tax year, and you are not including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 8689) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. 1040v tax form S. 1040v tax form tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. 1040v tax form O. 1040v tax form Box 1303 Charlotte, NC 28201-1303  USA   Send your USVI tax return and all attachments to:  Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040v tax form Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. 1040v tax form Joint return. 1040v tax form   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. 1040v tax form If the spouse with the greater AGI is a bona fide resident of the USVI during the entire tax year, file the joint return with the USVI. 1040v tax form If the spouse with the greater AGI is a U. 1040v tax form S. 1040v tax form citizen or resident alien of the United States but not a bona fide resident of the USVI during the entire tax year, file the joint return with the United States. 1040v tax form For this purpose, income is determined without regard to community property laws. 1040v tax form Example. 1040v tax form Marge Birch, a U. 1040v tax form S. 1040v tax form citizen, was a resident of the United States, and her spouse, a citizen of the USVI, was a bona fide resident of the USVI during the entire tax year. 1040v tax form Marge earned $55,000 as an architect in the United States. 1040v tax form Her spouse earned $30,000 as a librarian in the USVI. 1040v tax form Marge and her spouse will file a joint return. 1040v tax form Because Marge has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. 1040v tax form U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If you are a member of the U. 1040v tax form S. 1040v tax form Armed Forces who qualified as a bona fide resident of the U. 1040v tax form S. 1040v tax form Virgin Islands in a prior tax year, your absence from the U. 1040v tax form S. 1040v tax form Virgin Islands solely in compliance with military orders will not change your bona fide residency. 1040v tax form If you did not qualify as a bona fide resident of the U. 1040v tax form S. 1040v tax form Virgin Islands in a prior tax year, your presence in the U. 1040v tax form S. 1040v tax form Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. 1040v tax form S. 1040v tax form Virgin Islands. 1040v tax form Civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces. 1040v tax form   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. 1040v tax form S. 1040v tax form Armed Forces ), your tax residence is the USVI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. 1040v tax form However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the USVI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. 1040v tax form S. 1040v tax form tax return (Form 1040) and a state and/or local tax return, if required. 1040v tax form If you have income from the USVI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 8689 with your U. 1040v tax form S. 1040v tax form tax return. 1040v tax form In this case, follow the guidance under U. 1040v tax form S. 1040v tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. 1040v tax form Moving expense deduction. 1040v tax form   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. 1040v tax form Likewise, the expenses of a move back to the United States are generally attributable to U. 1040v tax form S. 1040v tax form earned income. 1040v tax form   If your move was to the USVI, report your deduction for moving expenses as follows. 1040v tax form If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. 1040v tax form If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 8689, line 20. 1040v tax form   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. 1040v tax form Foreign tax credit. 1040v tax form   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. 1040v tax form S. 1040v tax form income tax return for tax paid to the USVI. 1040v tax form However, individuals other than bona fide residents of the USVI may claim a direct credit for such tax (see Form 8689 earlier in this section). 1040v tax form Self-employment tax. 1040v tax form   If you have no U. 1040v tax form S. 1040v tax form filing requirement, but have income that is effectively connected with a trade or business in the USVI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. 1040v tax form Additional Medicare Tax. 1040v tax form   Beginning in 2013, you may be required to pay Additional Medicare Tax. 1040v tax form Also, you may need to report Additional Medicare Tax withheld by your employer. 1040v tax form For more information see Additional Medicare Tax under Special Rules for Completing Your U. 1040v tax form S. 1040v tax form Tax Return in chapter 4. 1040v tax form Estimated tax payments. 1040v tax form   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. 1040v tax form   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay St. 1040v tax form Thomas, VI 00802   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. 1040v tax form irs. 1040v tax form gov/e-pay. 1040v tax form   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. 1040v tax form Extension of time to file. 1040v tax form   You can get an automatic 6-month extension of time to file your tax return. 1040v tax form See Extension of Time To File in chapter 4. 1040v tax form Bona fide residents of the USVI during the entire tax year must file a paper Form 4868 with the Virgin Islands Bureau of Internal Revenue. 1040v tax form Nonresidents of the USVI should file separate extension requests with the IRS and the Virgin Islands Bureau of Internal Revenue and make any payments due to the respective jurisdictions. 1040v tax form However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. 1040v tax form Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. 1040v tax form S. 1040v tax form Virgin Islands. 1040v tax form See Double Taxation in chapter 4. 1040v tax form Prev  Up  Next   Home   More Online Publications