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How To File 1040nr Ez

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How To File 1040nr Ez

How to file 1040nr ez Publication 970 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionComparison table. How to file 1040nr ez Ordering forms and publications. How to file 1040nr ez Tax questions. How to file 1040nr ez Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 970, such as legislation enacted after it was published, go to www. How to file 1040nr ez irs. How to file 1040nr ez gov/pub970. How to file 1040nr ez What's New Lifetime learning credit. How to file 1040nr ez  For 2013, the amount of your lifetime learning credit is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). How to file 1040nr ez You cannot claim a credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). How to file 1040nr ez This is an increase from the 2012 limits of $52,000 and $62,000 ($104,000 and $124,000 if filing a joint return). How to file 1040nr ez For more information, see chapter 3, Lifetime Learning Credit . How to file 1040nr ez Business deduction for work-related education. How to file 1040nr ez  For 2013, if you drive your car to and from school and qualify to deduct transportation expenses, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013 is 56. How to file 1040nr ez 5 cents per mile. How to file 1040nr ez See chapter 12, Business Deduction for Work-Related Education , for more information. How to file 1040nr ez Reminders Form 1098-T, Tuition Statement. How to file 1040nr ez  When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. How to file 1040nr ez In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31, 2014. How to file 1040nr ez An institution my choose to report either payments received during calendar year 2013 (box 1), or amounts billed during the calendar year 2013 (box 2), for qualified education expenses. How to file 1040nr ez However, the amounts in boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid. How to file 1040nr ez In addition, the Form 1098-T should give you other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements, or refunds, and whether the student was enrolled at least half-time or was a graduate student. How to file 1040nr ez The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. How to file 1040nr ez Hope Scholarship Credit. How to file 1040nr ez  For 2013, the Hope Scholarship Credit is not available. How to file 1040nr ez However, you may be able to claim an American opportunity or lifetime learning credit. How to file 1040nr ez See chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit , for more information. How to file 1040nr ez Estimated tax payments. How to file 1040nr ez  If you have taxable income from any of your education benefits and the payer does not withhold enough income tax, you may need to make estimated tax payments. How to file 1040nr ez For more information, see Publication 505, Tax Withholding and Estimated Tax. How to file 1040nr ez Photographs of missing children. How to file 1040nr ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to file 1040nr ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to file 1040nr ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How to file 1040nr ez Introduction This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family. How to file 1040nr ez Most benefits apply only to higher education. How to file 1040nr ez What is in this publication. How to file 1040nr ez    Chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions , explains the tax treatment of various types of educational assistance, including scholarships, fellowships, and tuition reductions. How to file 1040nr ez   Two tax credits for which you may be eligible are explained in chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit . How to file 1040nr ez These benefits, which reduce the amount of income tax you may have to pay, are: The American opportunity credit, and The lifetime learning credit. How to file 1040nr ez    Ten other types of benefits are explained in chapters 4 through 12. How to file 1040nr ez These benefits, which reduce the amount of income tax you may have to pay, are: Deduct student loan interest; Receive tax-free treatment of a canceled student loan; Receive tax-free student loan repayment assistance; Deduct tuition and fees for education; Establish and contribute to a Coverdell education savings account (ESA), which features tax-free earnings; Participate in a qualified tuition program (QTP), which features tax-free earnings; Take early distributions from any type of individual retirement arrangement (IRA) for education costs without paying the 10% additional tax on early distributions; Cash in savings bonds for education costs without having to pay tax on the interest; Receive tax-free educational benefits from your employer; and Take a business deduction for work-related education. How to file 1040nr ez Note. How to file 1040nr ez You generally cannot claim more than one of the benefits described in the list above for the same qualifying education expense. How to file 1040nr ez Comparison table. How to file 1040nr ez   Some of the features of these benefits are highlighted in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 , later, in this publication. How to file 1040nr ez This general comparison table may guide you in determining which benefits you may be eligible for and which chapters you may want to read. How to file 1040nr ez When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that gives you the lowest tax liability. How to file 1040nr ez If you qualify, you may find that a combination of credit(s) and deduction(s) gives you the lowest tax. How to file 1040nr ez Analyzing your tax withholding. How to file 1040nr ez   After you estimate your education tax benefits for the year, you may be able to reduce the amount of your federal income tax withholding. How to file 1040nr ez Also, you may want to recheck your withholding during the year if your personal or financial situation changes. How to file 1040nr ez See Publication 919, How Do I Adjust My Tax Withholding, for more information. How to file 1040nr ez Glossary. How to file 1040nr ez   In this publication, wherever appropriate, we have tried to use the same or similar terminology when referring to the basic components of each education benefit. How to file 1040nr ez Some of the terms used are: Qualified education expenses, Eligible educational institution, and Modified adjusted gross income. How to file 1040nr ez   Even though the same term, such as qualified education expenses, is used to label a basic component of many of the education benefits, the same expenses are not necessarily allowed for each benefit. How to file 1040nr ez For example, the cost of room and board is a qualified education expense for the qualified tuition program, but not for the education savings bond program. How to file 1040nr ez   Many of the terms used in the publication are defined in the glossary near the end of the publication. How to file 1040nr ez The glossary is not intended to be a substitute for reading the chapter on a particular education benefit, but it will give you an overview of how certain terms are used in discussing the different benefits. How to file 1040nr ez Comments and suggestions. How to file 1040nr ez   We welcome your comments about this publication and your suggestions for future editions. How to file 1040nr ez   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How to file 1040nr ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to file 1040nr ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to file 1040nr ez   You can send your comments from www. How to file 1040nr ez irs. How to file 1040nr ez gov/formspubs/. How to file 1040nr ez Click on “More Information” and then on “Comment on Tax Forms and Publications”. How to file 1040nr ez   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. How to file 1040nr ez Ordering forms and publications. How to file 1040nr ez   Visit www. How to file 1040nr ez irs. How to file 1040nr ez gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. How to file 1040nr ez Internal Revenue Service 1201 N. How to file 1040nr ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to file 1040nr ez   If you have a tax question, check the information available on IRS. How to file 1040nr ez gov or call 1-800-829-1040. How to file 1040nr ez We cannot answer tax questions sent to either of the above addresses. How to file 1040nr ez Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1040 U. How to file 1040nr ez S. How to file 1040nr ez Individual Income Tax Return 1040A U. How to file 1040nr ez S. How to file 1040nr ez Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. How to file 1040nr ez S. How to file 1040nr ez Nonresident Alien Income Tax Return 1040NR-EZ U. How to file 1040nr ez S. How to file 1040nr ez Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 5329 Additional Taxes on Qualified Plans and Other Tax-Favored Accounts 8815 Exclusion of Interest From Series EE and I U. How to file 1040nr ez S. How to file 1040nr ez Savings Bonds Issued After 1989 8863 Education Credits 8917 Tuition and Fees Deduction Schedule A (Form 1040) Itemized Deductions  See chapter 13, How To Get Tax Help , for information about getting these publications and forms. How to file 1040nr ez Prev  Up  Next   Home   More Online Publications
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  • Disregard this notice if you have filed the return within the last four weeks using the same name and EIN listed on the notice.
  • Otherwise, file your required Form 990-N, 990, or 990-EZ immediately according to the instructions on the notice.
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Answers to Common Questions

Which organizations are eligible to file Form 990-N?
Small tax-exempt organizations whose annual gross receipts are $50,000 or less for 2010 ($25,000 or less for 2009) are eligible to electronically submit Form 990-N, also known as the e-Postcard. The organization may choose to file a complete Form 990 or Form 990-EZ instead.

When is Form 990-N due?
Form 990-N is due by the 15th day of the 5th month following the close of the organization's accounting period. Thus, for a calendar year taxpayer, Form 990-N is due on May 15 of the following year. If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day.

Which organizations must file a Form 990 or 990-EZ?
Form 990 must be filed by an organization exempt from income tax under section 501(a) (including an organization that has not applied for recognition of exemption) if it has either (1) gross receipts greater than or equal to $500,000 or (2) total assets greater than or equal to $1,250,000 at the end of the tax year. This includes:

  • Organizations described in section 501 (c)(3) (other than private foundations), and
  • Organizations described in other 501 (c) subsections (other than black lung benefit trusts).

Other exempt organizations can file Form 990-EZ instead. If gross receipts are $50,000 or lower in 2010 ($25,000 for 2009), organizations are eligible to file Form 990-N.

When is Form 990 or 990-EZ due?
Form 990 or 990-EZ is due by the 15th day of the 5th month after the end of the tax year. Thus, for a calendar year taxpayer, Form 990 or Form 990-EZ is due on May 15 of the following year. If any due date falls on a Saturday, Sunday or legal holiday, the organization can file the return on the next business day.

More information can be found at Form 990 Resources and Tools for Exempt Organizations.

Can I get help over the phone?
If you have questions and/or need help completing the form, please call 1-877-829-5500. Personal assistance is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.

Where can I go for more information about tax-exempt organizations?
For more information on tax-exempt organizations see Tax Information for Charities & Other Non-Profits.


Tips for next year

Review the tax-exempt organization resources at Form 990 Resources and Tools for Exempt Organizations.


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Page Last Reviewed or Updated: 29-Mar-2014

The How To File 1040nr Ez

How to file 1040nr ez 2. How to file 1040nr ez   Source of Income Table of Contents Introduction Topics - This chapter discusses: Resident Aliens Nonresident AliensInterest Income Dividends Guarantee of Indebtedness Personal Services Transportation Income Scholarships, Grants, Prizes, and Awards Pensions and Annuities Rents or Royalties Real Property Personal Property Community Income Introduction After you have determined your alien status, you must determine the source of your income. How to file 1040nr ez This chapter will help you determine the source of different types of income you may receive during the tax year. How to file 1040nr ez This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. How to file 1040nr ez Topics - This chapter discusses: Income source rules, and Community income. How to file 1040nr ez Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. How to file 1040nr ez S. How to file 1040nr ez citizen. How to file 1040nr ez If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U. How to file 1040nr ez S. How to file 1040nr ez tax return. How to file 1040nr ez You must report these amounts from sources within and outside the United States. How to file 1040nr ez Nonresident Aliens A nonresident alien usually is subject to U. How to file 1040nr ez S. How to file 1040nr ez income tax only on U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez Under limited circumstances, certain foreign source income is subject to U. How to file 1040nr ez S. How to file 1040nr ez tax. How to file 1040nr ez See Foreign Income in chapter 4. How to file 1040nr ez The general rules for determining U. How to file 1040nr ez S. How to file 1040nr ez source income that apply to most nonresident aliens are shown in Table 2-1. How to file 1040nr ez The following discussions cover the general rules as well as the exceptions to these rules. How to file 1040nr ez Not all items of U. How to file 1040nr ez S. How to file 1040nr ez source income are taxable. How to file 1040nr ez See chapter 3. How to file 1040nr ez Interest Income Generally, U. How to file 1040nr ez S. How to file 1040nr ez source interest income includes the following items. How to file 1040nr ez Interest on bonds, notes, or other interest-bearing obligations of U. How to file 1040nr ez S. How to file 1040nr ez residents or domestic corporations. How to file 1040nr ez Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. How to file 1040nr ez S. How to file 1040nr ez trade or business at any time during the tax year. How to file 1040nr ez Original issue discount. How to file 1040nr ez Interest from a state, the District of Columbia, or the U. How to file 1040nr ez S. How to file 1040nr ez Government. How to file 1040nr ez The place or manner of payment is immaterial in determining the source of the income. How to file 1040nr ez A substitute interest payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as the interest on the transferred security. How to file 1040nr ez Exceptions. How to file 1040nr ez   U. How to file 1040nr ez S. How to file 1040nr ez source interest income does not include the following items. How to file 1040nr ez Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 80% of the payer's total gross income: Is from sources outside the United States, and Is attributable to the active conduct of a trade or business by the individual or corporation in a foreign country or a U. How to file 1040nr ez S. How to file 1040nr ez possession. How to file 1040nr ez However, the interest will be considered U. How to file 1040nr ez S. How to file 1040nr ez source interest income if either of the following apply. How to file 1040nr ez The recipient of the interest is related to the resident alien or domestic corporation. How to file 1040nr ez See section 954(d)(3) for the definition of related person. How to file 1040nr ez The terms of the obligation are significantly modified after August 9, 2010. How to file 1040nr ez Any extension of the term of the obligation is considered a significant modification. How to file 1040nr ez Interest paid by a foreign branch of a domestic corporation or a domestic partnership on deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law if the interest paid or credited can be deducted by the association. How to file 1040nr ez Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business. How to file 1040nr ez Dividends In most cases, dividend income received from domestic corporations is U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez Dividend income from foreign corporations is usually foreign source income. How to file 1040nr ez Exceptions to both of these rules are discussed below. How to file 1040nr ez A substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a distribution on the transferred security. How to file 1040nr ez Dividend equivalent payments. How to file 1040nr ez   U. How to file 1040nr ez S. How to file 1040nr ez source dividends also include all dividend equivalent payments. How to file 1040nr ez Dividend equivalent payments include substitute dividends, payments made pursuant to a specified notional principal contract, and all similar payments that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U. How to file 1040nr ez S. How to file 1040nr ez sources. How to file 1040nr ez    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. How to file 1040nr ez You can view this regulation at www. How to file 1040nr ez irs. How to file 1040nr ez gov/irb/2013-52_IRB/ar08. How to file 1040nr ez html. How to file 1040nr ez First exception. How to file 1040nr ez   Dividends received from a domestic corporation are not U. How to file 1040nr ez S. How to file 1040nr ez source income if the corporation elects to take the American Samoa economic development credit. How to file 1040nr ez Second exception. How to file 1040nr ez   Part of the dividends received from a foreign corporation is U. How to file 1040nr ez S. How to file 1040nr ez source income if 25% or more of its total gross income for the 3-year period ending with the close of its tax year preceding the declaration of dividends was effectively connected with a trade or business in the United States. How to file 1040nr ez If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. How to file 1040nr ez Determine the part that is U. How to file 1040nr ez S. How to file 1040nr ez source income by multiplying the dividend by the following fraction. How to file 1040nr ez   Foreign corporation's gross income connected with a U. How to file 1040nr ez S. How to file 1040nr ez trade or business for the 3-year period     Foreign corporation's gross income from all sources for that period   Guarantee of Indebtedness Certain amounts received directly or indirectly, for the provision of a guarantee of indebtedness issued after September 27, 2010, are U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez They must be paid by a noncorporate resident or U. How to file 1040nr ez S. How to file 1040nr ez corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. How to file 1040nr ez S. How to file 1040nr ez trade or business. How to file 1040nr ez For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). How to file 1040nr ez Personal Services All wages and any other compensation for services performed in the United States are considered to be from sources in the United States. How to file 1040nr ez The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. How to file 1040nr ez If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. How to file 1040nr ez Compensation (other than certain fringe benefits) is sourced on a time basis. How to file 1040nr ez Certain fringe benefits (such as housing and education) are sourced on a geographical basis. How to file 1040nr ez Or, you may be permitted to use an alternative basis to determine the source of compensation. How to file 1040nr ez See Alternative Basis , later. How to file 1040nr ez Multi-level marketing. How to file 1040nr ez   Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. How to file 1040nr ez Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. How to file 1040nr ez The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable. How to file 1040nr ez Self-employed individuals. How to file 1040nr ez   If you are self-employed, you determine the source of compensation for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. How to file 1040nr ez In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. How to file 1040nr ez Time Basis Use a time basis to figure your U. How to file 1040nr ez S. How to file 1040nr ez source compensation (other than the fringe benefits discussed later). How to file 1040nr ez Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed services in the United States during the year     Total number of days you performed services during the year   You can use a unit of time less than a day in the above fraction, if appropriate. How to file 1040nr ez The time period for which the compensation is made does not have to be a year. How to file 1040nr ez Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. How to file 1040nr ez Example 1. How to file 1040nr ez Christina Brooks, a resident of the Netherlands, worked 240 days for a U. How to file 1040nr ez S. How to file 1040nr ez company during the tax year. How to file 1040nr ez She received $80,000 in compensation. How to file 1040nr ez None of it was for fringe benefits. How to file 1040nr ez Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. How to file 1040nr ez Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez Example 2. How to file 1040nr ez Rob Waters, a resident of South Africa, is employed by a corporation. How to file 1040nr ez His annual salary is $100,000. How to file 1040nr ez None of it is for fringe benefits. How to file 1040nr ez During the first quarter of the year he worked entirely within the United States. How to file 1040nr ez On April 1, Rob was transferred to Singapore for the remainder of the year. How to file 1040nr ez Rob is able to establish that the first quarter of the year and the last 3 quarters of the year are two separate, distinct, and continuous periods of time. How to file 1040nr ez Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. How to file 1040nr ez 25 × $100,000). How to file 1040nr ez All of it is U. How to file 1040nr ez S. How to file 1040nr ez source income because he worked entirely within the United States during that quarter. How to file 1040nr ez The remaining $75,000 is attributable to the last three quarters of the year. How to file 1040nr ez During those quarters, he worked 150 days in Singapore and 30 days in the United States. How to file 1040nr ez His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. How to file 1040nr ez Of this $75,000, $12,500 ($75,000 × 30/180) is U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez Multi-year compensation. How to file 1040nr ez   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. How to file 1040nr ez Multi-year compensation is compensation that is included in your income in one tax year but that is attributable to a period that includes two or more tax years. How to file 1040nr ez   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. How to file 1040nr ez For example, an amount of compensation that specifically relates to a period of time that includes several calendar years is attributable to the entire multi-year period. How to file 1040nr ez   The amount of compensation treated as from U. How to file 1040nr ez S. How to file 1040nr ez sources is figured by multiplying the total multi-year compensation by a fraction. How to file 1040nr ez The numerator of the fraction is the number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in the United States in connection with the project. How to file 1040nr ez The denominator of the fraction is the total number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the project. How to file 1040nr ez Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. How to file 1040nr ez Housing. How to file 1040nr ez Education. How to file 1040nr ez Local transportation. How to file 1040nr ez Tax reimbursement. How to file 1040nr ez Hazardous or hardship duty pay as defined in Regulations section 1. How to file 1040nr ez 861-4(b)(2)(ii)(D)(5). How to file 1040nr ez Moving expense reimbursement. How to file 1040nr ez The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. How to file 1040nr ez Principal place of work. How to file 1040nr ez   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. How to file 1040nr ez Your principal place of work is usually the place where you spend most of your working time. How to file 1040nr ez This could be your office, plant, store, shop, or other location. How to file 1040nr ez If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. How to file 1040nr ez   If you have more than one job at any time, your main job location depends on the facts in each case. How to file 1040nr ez The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. How to file 1040nr ez Housing. How to file 1040nr ez   The source of a housing fringe benefit is determined based on the location of your principal place of work. How to file 1040nr ez A housing fringe benefit includes payments to you or on your behalf (and your family's if your family resides with you) only for the following. How to file 1040nr ez Rent. How to file 1040nr ez Utilities (except telephone charges). How to file 1040nr ez Real and personal property insurance. How to file 1040nr ez Occupancy taxes not deductible under section 164 or 216(a). How to file 1040nr ez Nonrefundable fees for securing a leasehold. How to file 1040nr ez Rental of furniture and accessories. How to file 1040nr ez Household repairs. How to file 1040nr ez Residential parking. How to file 1040nr ez Fair rental value of housing provided in kind by your employer. How to file 1040nr ez   A housing fringe benefit does not include: Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation), The cost of buying property, including principal payments on a mortgage, The cost of domestic labor (maids, gardeners, etc. How to file 1040nr ez ), Pay television subscriptions, Improvements and other expenses that increase the value or appreciably prolong the life of property, Purchased furniture or accessories, Depreciation or amortization of property or improvements, The value of meals or lodging that you exclude from gross income, or The value of meals or lodging that you deduct as moving expenses. How to file 1040nr ez Education. How to file 1040nr ez   The source of an education fringe benefit for the education expenses of your dependents is determined based on the location of your principal place of work. How to file 1040nr ez An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. How to file 1040nr ez Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. How to file 1040nr ez Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. How to file 1040nr ez Local transportation. How to file 1040nr ez   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. How to file 1040nr ez Your local transportation fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. How to file 1040nr ez The amount treated as a local transportation fringe benefit is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. How to file 1040nr ez Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. How to file 1040nr ez Tax reimbursement. How to file 1040nr ez   The source of a tax reimbursement fringe benefit is determined based on the location of the jurisdiction that imposed the tax for which you are reimbursed. How to file 1040nr ez Moving expense reimbursement. How to file 1040nr ez   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. How to file 1040nr ez However, the source is determined based on the location of your former principal place of work if you provide sufficient evidence that such determination of source is more appropriate under the facts and circumstances of your case. How to file 1040nr ez Sufficient evidence generally requires an agreement between you and your employer, or a written statement of company policy, which is reduced to writing before the move and which is entered into or established to induce you or other employees to move to another country. How to file 1040nr ez The written statement or agreement must state that your employer will reimburse you for moving expenses that you incur to return to your former principal place of work regardless of whether you continue to work for your employer after returning to that location. How to file 1040nr ez It may contain certain conditions upon which the right to reimbursement is determined as long as those conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of work. How to file 1040nr ez Alternative Basis If you are an employee, you can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your compensation than the time or geographical basis. How to file 1040nr ez If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your compensation. How to file 1040nr ez Also, if your total compensation from all sources is $250,000 or more, check “Yes” to both questions on line K on page 5 of Form 1040NR, and attach a written statement to your tax return that sets forth all of the following. How to file 1040nr ez Your name and social security number (written across the top of the statement). How to file 1040nr ez The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. How to file 1040nr ez For each item in (2), the alternative basis of allocation of source used. How to file 1040nr ez For each item in (2), a computation showing how the alternative allocation was computed. How to file 1040nr ez A comparison of the dollar amount of the U. How to file 1040nr ez S. How to file 1040nr ez compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. How to file 1040nr ez Transportation Income Transportation income is income from the use of a vessel or aircraft or for the performance of services directly related to the use of any vessel or aircraft. How to file 1040nr ez This is true whether the vessel or aircraft is owned, hired, or leased. How to file 1040nr ez The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. How to file 1040nr ez All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. How to file 1040nr ez If the transportation begins or ends in the United States, 50% of the transportation income is treated as derived from sources in the United States. How to file 1040nr ez For transportation income from personal services, 50% of the income is U. How to file 1040nr ez S. How to file 1040nr ez source income if the transportation is between the United States and a U. How to file 1040nr ez S. How to file 1040nr ez possession. How to file 1040nr ez For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. How to file 1040nr ez For information on how U. How to file 1040nr ez S. How to file 1040nr ez source transportation income is taxed, see chapter 4. How to file 1040nr ez Scholarships, Grants, Prizes, and Awards Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. How to file 1040nr ez However, see Activities to be performed outside the United States , later. How to file 1040nr ez For example, payments for research or study in the United States made by the United States, a noncorporate U. How to file 1040nr ez S. How to file 1040nr ez resident, or a domestic corporation, are from U. How to file 1040nr ez S. How to file 1040nr ez sources. How to file 1040nr ez Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. How to file 1040nr ez S. How to file 1040nr ez agent. How to file 1040nr ez Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. How to file 1040nr ez Activities to be performed outside the United States. How to file 1040nr ez   Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United States are not U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez    These rules do not apply to amounts paid as salary or other compensation for services. How to file 1040nr ez See Personal Services, earlier, for the source rules that apply. How to file 1040nr ez Pensions and Annuities If you receive a pension from a domestic trust for services performed both in and outside the United States, part of the pension payment is from U. How to file 1040nr ez S. How to file 1040nr ez sources. How to file 1040nr ez That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. How to file 1040nr ez This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). How to file 1040nr ez If you performed services as an employee of the United States, you may receive a distribution from the U. How to file 1040nr ez S. How to file 1040nr ez Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. How to file 1040nr ez Your U. How to file 1040nr ez S. How to file 1040nr ez source income is the otherwise taxable amount of the distribution that is attributable to your total U. How to file 1040nr ez S. How to file 1040nr ez Government basic pay other than tax-exempt pay for services performed outside the United States. How to file 1040nr ez Rents or Royalties Your U. How to file 1040nr ez S. How to file 1040nr ez source income includes rent and royalty income received during the tax year from property located in the United States or from any interest in that property. How to file 1040nr ez U. How to file 1040nr ez S. How to file 1040nr ez source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property. How to file 1040nr ez Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. How to file 1040nr ez Gross income from sources in the United States includes gains, profits, and income from the sale or other disposition of real property located in the United States. How to file 1040nr ez Natural resources. How to file 1040nr ez   The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a foreign country, or located in a foreign country and sold in the United States, is partly from sources in the United States. How to file 1040nr ez For information on determining that part, see section 1. How to file 1040nr ez 863-1(b) of the regulations. How to file 1040nr ez Table 2-1. How to file 1040nr ez Summary of Source Rules for Income of Nonresident Aliens Item of income Factor determining source Salaries, wages, other compensation Where services performed Business income:   Personal services Where services performed Sale of inventory—purchased Where sold Sale of inventory—produced Allocation Interest Residence of payer Dividends Whether a U. How to file 1040nr ez S. How to file 1040nr ez or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. How to file 1040nr ez Where property is used Sale of real property Location of property Sale of personal property Seller's tax home (but see Personal Property , later, for exceptions) Pension distributions attributable to contributions Where services were performed that earned the pension Investment earnings on pension contributions Location of pension trust Sale of natural resources Allocation based on fair market value of product at export terminal. How to file 1040nr ez For more information, see section 1. How to file 1040nr ez 863-1(b) of the regulations. How to file 1040nr ez *Exceptions include: a) Dividends paid by a U. How to file 1040nr ez S. How to file 1040nr ez corporation are foreign source if the corporation elects the  American Samoa economic development credit. How to file 1040nr ez  b) Part of a dividend paid by a foreign corporation is U. How to file 1040nr ez S. How to file 1040nr ez source if at least 25% of the  corporation's gross income is effectively connected with a U. How to file 1040nr ez S. How to file 1040nr ez trade or business for the  3 tax years before the year in which the dividends are declared. How to file 1040nr ez Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. How to file 1040nr ez Gain or loss from the sale or exchange of personal property generally has its source in the United States if you have a tax home in the United States. How to file 1040nr ez If you do not have a tax home in the United States, the gain or loss generally is considered to be from sources outside the United States. How to file 1040nr ez Tax home. How to file 1040nr ez   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. How to file 1040nr ez Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. How to file 1040nr ez If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. How to file 1040nr ez If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. How to file 1040nr ez Inventory property. How to file 1040nr ez   Inventory property is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. How to file 1040nr ez Income from the sale of inventory that you purchased is sourced where the property is sold. How to file 1040nr ez Generally, this is where title to the property passes to the buyer. How to file 1040nr ez For example, income from the sale of inventory in the United States is U. How to file 1040nr ez S. How to file 1040nr ez source income, whether you purchased it in the United States or in a foreign country. How to file 1040nr ez   Income from the sale of inventory property that you produced in the United States and sold outside the United States (or vice versa) is partly from sources in the United States and partly from sources outside the United States. How to file 1040nr ez For information on making this allocation, see section 1. How to file 1040nr ez 863-3 of the regulations. How to file 1040nr ez   These rules apply even if your tax home is not in the United States. How to file 1040nr ez Depreciable property. How to file 1040nr ez   To determine the source of any gain from the sale of depreciable personal property, you must first figure the part of the gain that is not more than the total depreciation adjustments on the property. How to file 1040nr ez You allocate this part of the gain to sources in the United States based on the ratio of U. How to file 1040nr ez S. How to file 1040nr ez depreciation adjustments to total depreciation adjustments. How to file 1040nr ez The rest of this part of the gain is considered to be from sources outside the United States. How to file 1040nr ez   For this purpose, “U. How to file 1040nr ez S. How to file 1040nr ez depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. How to file 1040nr ez S. How to file 1040nr ez sources. How to file 1040nr ez However, if the property is used predominantly in the United States during a tax year, all depreciation deductions allowable for that year are treated as U. How to file 1040nr ez S. How to file 1040nr ez depreciation adjustments. How to file 1040nr ez But there are some exceptions for certain transportation, communications, and other property used internationally. How to file 1040nr ez   Gain from the sale of depreciable property that is more than the total depreciation adjustments on the property is sourced as if the property were inventory property, as discussed above. How to file 1040nr ez   A loss is sourced in the same way as the depreciation deductions were sourced. How to file 1040nr ez However, if the property was used predominantly in the United States, the entire loss reduces U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. How to file 1040nr ez Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. How to file 1040nr ez The amount you can deduct depends on the property's cost, when you began using the property, how long it will take to recover your cost, and which depreciation method you use. How to file 1040nr ez A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. How to file 1040nr ez Intangible property. How to file 1040nr ez   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. How to file 1040nr ez The gain from the sale of amortizable or depreciable intangible property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the original deductions were sourced. How to file 1040nr ez This is the same as the source rule for gain from the sale of depreciable property. How to file 1040nr ez See Depreciable property , earlier, for details on how to apply this rule. How to file 1040nr ez   Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is used if the income from the sale is contingent on the productivity, use, or disposition of that property. How to file 1040nr ez If the income is not contingent on the productivity, use, or disposition of the property, the income is sourced according to your tax home as discussed earlier. How to file 1040nr ez If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. How to file 1040nr ez Sales through offices or fixed places of business. How to file 1040nr ez   Despite any of the earlier rules, if you do not have a tax home in the United States, but you maintain an office or other fixed place of business in the United States, treat the income from any sale of personal property (including inventory property) that is attributable to that office or place of business as U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez However, this rule does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your office or other fixed place of business outside the United States materially participated in the sale. How to file 1040nr ez   If you have a tax home in the United States but maintain an office or other fixed place of business outside the United States, income from sales of personal property, other than inventory, depreciable property, or intangibles, that is attributable to that foreign office or place of business may be treated as U. How to file 1040nr ez S. How to file 1040nr ez source income. How to file 1040nr ez The income is treated as U. How to file 1040nr ez S. How to file 1040nr ez source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. How to file 1040nr ez This rule also applies to losses if the foreign country would have imposed an income tax of less than 10% had the sale resulted in a gain. How to file 1040nr ez Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. How to file 1040nr ez S. How to file 1040nr ez state, or a U. How to file 1040nr ez S. How to file 1040nr ez possession, you generally must follow those laws to determine the income of yourself and your spouse for U. How to file 1040nr ez S. How to file 1040nr ez tax purposes. How to file 1040nr ez But you must disregard certain community property laws if: Both you and your spouse are nonresident aliens, or One of you is a nonresident alien and the other is a U. How to file 1040nr ez S. How to file 1040nr ez citizen or resident and you do not both choose to be treated as U. How to file 1040nr ez S. How to file 1040nr ez residents as explained in chapter 1. How to file 1040nr ez In these cases, you and your spouse must report community income as explained later. How to file 1040nr ez Earned income. How to file 1040nr ez   Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the spouse whose services produced the income. How to file 1040nr ez That spouse must report all of it on his or her separate return. How to file 1040nr ez Trade or business income. How to file 1040nr ez   Trade or business income, other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on the trade or business. How to file 1040nr ez That spouse must report all of it on his or her separate return. How to file 1040nr ez Partnership income (or loss). How to file 1040nr ez   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. How to file 1040nr ez The partner must report all of it on his or her separate return. How to file 1040nr ez Separate property income. How to file 1040nr ez   Income derived from the separate property of one spouse (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. How to file 1040nr ez That spouse must report all of it on his or her separate return. How to file 1040nr ez Use the appropriate community property law to determine what is separate property. How to file 1040nr ez Other community income. How to file 1040nr ez   All other community income is treated as provided by the applicable community property laws. How to file 1040nr ez Prev  Up  Next   Home   More Online Publications