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你的基本税務責任

您剛到美國嗎?

你的基本税務責任如果您剛到美國，您需要知道自己在稅務申報上的責任。您在這一頁可以找到有關申報美國聯邦所得稅的答案。

  • 我如何知道自己是否有責任申報聯邦所得稅?
  • 我的移民身份是否決定了我需不需要繳稅?
  • 報稅對我有什麼好處?
  • 不報稅會受處罰嗎?

税務責任基礎

每一個住在美國，有收入並且符合某些資格規定的人都有責任申報聯邦所得稅。申報的資格規定不是由您的移民身份決定，而是取決於您的收入與其他因素。繳稅和報稅是法律規定，不遵守這項規定能讓您受到民事及刑事處罰。

依照法律規定，報稅表上列的每個人都要有一個身份識別號碼。這個稅表上表列的號碼通常是社會安全局所核發的社會安全號碼。

如果納稅人必須報稅但不符合申請社會安全號碼的資格，則該納稅人可取得個人納稅識別號碼(Individual Taxpayer Identification Number)用於報稅。個人納稅識別號碼由國稅局核發，僅限報稅使用。

您可以自己填寫並提交稅表，也可以找專業的報稅員幫您填寫稅表。如果您付錢請人替您填寫稅表，這個人必須在您的稅表上簽字。稅表可以用紙張格式填寫後寄出，也可以通過電子方式申報。

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一般資訊: 我必須報稅嗎?

如果您是美國公民或是稅法定義的居民，而且您符合下列任何一類適用於您的報稅資格規定，您就必須申報聯邦所得稅。

  1. 一般的個人
  2. 被撫養人
  3. 19 歲以下的某些子女或全職學生
  4. 自雇者
  5. 外籍人士

如果您是美國公民或是稅法定義的居民，您是否必須報稅取決於三項因素：

  1. 您的總收入
  2. 您的報稅身份，以及
  3. 您的年齡

社會安全號碼

如何申請社會安全號碼(PDF)

您必須在稅表上的空白欄填入您的社會安全號碼(SSN)。您報稅表上的社會安全號碼務必要和您社會安全卡上的號碼相同。如果您已婚，填入您與配偶兩人的社會安全號碼。

如果您採用夫妻聯合報稅，按稅表上的姓名先後順序填寫兩人的社會安全號碼。向國稅局提交其他表格與檔時也用此一順序。

更改姓名。如果您因為結婚，離婚等原因而更改姓名，務必在報稅以前向社會安全局(SSA)報告這項變更。這樣可以防止在處理您稅表及退稅核發上的延誤。它還能保障您未來的社會安全福利。

被撫養人的社會安全號碼。無論被撫養人的年齡，您都必須提供您申報的每位被撫養人的社會安全號碼。此一規定適用於您報稅表上申報的所有被撫養人（不僅限於您的子女）。

信函上注明社會安全號碼。如果您因稅務事宜寫信給國稅局，務必在您的信函中注明您的社會安全號碼（夫妻聯合報稅者附上配偶的姓名與社會安全號碼）。由於您的報稅帳戶是用您的社會安全號碼來識別，這能幫助國稅局迅速回復您的來信。

報稅身份

每個申報聯邦所得稅的人都必須決定適用於自己情況的報稅身份。選對報稅身份是很重要的，因為這會決定您的標準扣抵額，您需補繳的稅額，以及欠您的任何退稅款。

在您能決定您的申報資格，標準扣抵額和正確稅額之前，您必須先確定您的報稅身份。您也可以用您的報稅身份來決定您是否符合申請某些扣除額和抵免額的條件。

報稅身份有五種

婚姻狀況 通常，您的報稅身份取決於您被認定為未婚或已婚。

已婚人士 如果您被視為全年已婚，您與您的配偶就能以夫妻聯合申報或夫妻分別申報的方式報稅。

視為已婚 如果您與您的配偶在稅務年度最後一天符合以下任何一項測試條件，您倆即被視為已婚。

  1. 您倆已婚，並以丈夫與妻子的關係住在一起。
  2. 您倆以普通法婚姻關係住在一起，該婚姻關係為您現在定居的州或此普通法婚姻關係開始時所在的州所承認。
  3. 您倆已婚並且分開居住，但並非依離婚判決或分居撫養費判決而合法分居。
  4. 您倆依中期（非最終）離婚判決而分居。就夫妻聯合報稅而言，您倆不被視為已離婚。

1. 單身 (Single)
若您符合以下情況，您的報稅身份是單身：您在年度最後一天未婚或依離婚判決或分居撫養費判決而與配偶合法分居，並且您不符合其他報稅身份的資格。

2. 已婚夫妻聯合報稅 (Married Filing Jointly)
如果您已婚，而且您與配偶皆同意以聯合申報的方式報稅，您就能選擇以已婚夫妻聯合報稅作為您的報稅身份。在聯合報稅表上，您申報您倆合併的收入並扣除您倆合併的可允許支出。即使您倆之中有一人沒有收入或扣除項，您還是可以使用夫妻聯合報稅身份。

3. 已婚夫妻分開報稅 (Married Filing Separately)
如果您已婚，您可以選擇已婚夫妻分開報稅作為您的報稅身份。如果您只想負責您自己的稅，或是這個方式算起來比夫妻聯合報稅所繳的稅額要少，那這個報稅身份可能對您有利。

如果您與配偶不同意用夫妻聯合報稅，您可能就必須用此一報稅身份，除非您符合一家之主的身份。

4. 一家之主 (Head of Household)
如果您符合下述所有的資格要求，您可能就能以一家之主的身份報稅。

  1. 您在年度最後一天為未婚或“被視為未婚”。
  2. 您在該年度支付一半以上的持家費用。
  3. 一個“合格個人”與您同住家中超過該年度的半年以上（暫時離開不在此限，例如就學。）但是，如果“合格個人”是您奉養的父母，則您的父親或母親不須與您同住。

5. 撫養子女的合格寡婦（鰥夫）(Qualifying Widow(er) With Dependent Child)
如果您的配偶在 2016年身故，您可以使用已婚夫妻聯合報稅作為您 2016 年的報稅身份，前提是您原本即符合該報稅身份的資格。配偶身故那年是您可以與身故配偶聯合報稅的最後一個稅務年度。

配偶身故後的下兩年，您可以用撫養子女的合格寡婦（鰥夫）作為您的報稅身份。例如，如果配偶在 2015 年身故，而且您一直沒有再婚，您就可能在 2016 和 2017 的稅務年度使用這個報稅身份。

適用多數納稅人的2016年度報稅資格規定

如果您的報稅身份是… 而且您在2016年底時是… 那麼只要您的總收入到達以下標準，您就要報稅…
單身 65 歲以下
65 歲或以上		 $10,350
$11,900
已婚夫妻聯合報稅 65 歲以下（配偶雙方）
65 歲或以上（配偶單方）
65 歲或以上（配偶雙方）		 $20,700
$21,950
$23,200
已婚夫妻分開報稅 任何年齡 $4,050
一家之主 65 歲以下
65 歲或以上		 $13,350
$14,900
撫養子女的合格寡婦（鰥夫） 65 歲以下
65 歲或以上		 $16,650
$17,900

 

哪類收入應向國稅局申報?

應計入總收入並且向國稅局申報的各類收入

哪類收入應當申報?

通常的原則是，總收入包含所有收到的付款數額，這些付款是提供個人服務所得到的。這被視為已得收入。

未在發出方預扣稅款的所有收入，均須由接受這些收入的人詳實保存準確的賬目記錄。來自於自雇所得的收入也被視為已得收入。

除了已得收入以外，其他哪些收入應當申報?
除了作為雇員所得的收入應申報外，其他類型的應納稅收入也應在稅表上申報。

應申報的收入包括

  • 薪水，工資
  • 傭金
  • 酬金
  • 附加福利
  • 小費
  • 股票購買選擇權
  • 利息
  • 股息
  • 合夥分紅
  • 資本利得分紅
  • 退休金收入
  • 失業補償金收入
  • 博弈贏得的獲利
  • 國外已得收入

失業福利金是否應計入稅務申報表?
所有的失業福利金均應在稅表上申報。

22 Jaw-Dropping Stats About Retirement

22 Jaw-Dropping Stats About Retirement

Get these often-surprising retirement facts under your belt and they can help you make better decisions and take savvier actions, leading to a more comfortable retirement.

Selena Maranjian
Feb 25, 2017 at 6:21AM
“Retirement: It’s nice to get out of the rat race, but you have to learn to get along with less cheese.”
— Attributed to Gene PerretLearning to get along with less cheese in retirement isn’t fun for most people. You can make it less painful, though, by effectively planning and preparing for retirement. Here are more than 22 retirement stats most of us would do well to know about — and many of which are rather surprising.

Retirement

1 ) Your retirement may last much longer than you expect. If you stop working at 62, for example, and live to 97, your nest egg will need to support you for 35 years!

2) Living to 97 isn’t unthinkable. According to the Social Security Administration, 30% of 50-year-old women and 19% of 50-year-old men will live to 90. A Barron’s article recently noted: “The most likely age for a 50-year-old woman to die is 88, and the most likely age for a man is 85. A woman is more likely to die at age 92 than at her life expectancy age of 83, and a man is more likely to die at age 89 than 80.”

3) Retiring at age 62 isn’t crazy, either. The average retirement age was recently 63 — and you can start collecting Social Security benefits as early as age 62.

4) You may end up retiring earlier than planned. According to the 2016 Retirement Confidence Survey, 46% of retirees left the workforce earlier than planned, with 55% citing health problems or a disability as the reason and 24% citing changes at work such as a downsizing or workplace closure. 

Retirement5) According to an Edward Jones survey, about 60% of Americans of varying ages are worried about healthcare expenses in retirement. That may be surprising, but it’s also quite reasonable, because of the following retirement fact. 

6) Health care can cost much more than you think it will. According to Fidelity Investments, a 65-year-old couple retiring today will spend, on average, a total of $260,000 out of pocket on health care.
7) If you’re late enrolling for Medicare, it can cost you. Your Part B premiums (which cover medical services, but not hospital services) can rise by 10% for each year that you were eligible for Medicare but didn’t enroll. The no-penalty enrollment period for most people is anytime within the three months leading up to your 65th birthday, during the month of your birthday, or within the three months that follow.8) Lots of people are saving for retirement. There are more than 600,000 defined-contribution plans such as 401(k)s, with more than 70 million people participating in them. As of late 2016, there was about $7 trillion in 401(k) plans and close to $8 trillion in IRAs.9) Income from 401(k) accounts has been estimated to represent about 25% to 30% of overall retirement income. According to the Social Security Administration, most elderly beneficiaries get 50% or more of their income from Social Security, while 21% of married ones and 43% of unmarried ones get fully 90% or more of their income from it.10) The average 401(k) account balance in Fidelity Investments-managed plans hit a record average of $92,500 as of tRetirementhe end of 2016. 

11) That $92,500 won’t last long in retirement, and most people have saved less than that. According to the 2016 Retirement Confidence Survey, about 26% of respondents said they had less than $1,000 saved for retirement. A whopping 64% had saved less than $50,000.

12) Divorce doesn’t help matters. According to a recent survey from the American Institute of CPAs, three-quarters of retirement-age divorcees lack a good understanding of how to manage their personal finances. (It’s typical in couples for one spouse to manage the family finances, leaving the other one underprepared in the event of divorce.)

13) Many parents (aged 19 to 37) and grandparents (aged 50 to 70) are living more simply to save more for retirement. They’re eating out less frequently (more than 45% of both groups), traveling less (29% of both groups), and living in a smaller home (25% or more of both groups). (This is according to a 2016 TD Ameritrade survey.)

14) The average monthly Social Security retirement benefit was recently about $1,360, or $16,320 for the year.

15) If you think you’ll get more than the figure above because your earnings were above-average, you’re right. But still, the maximum monthly benefit for those retiring at their full retirement age was recently $2,687, or only about $32,000 annually.

16) Up to 85% of your Social Security income can be taxed, if your income exceeds a specified level.

17) According to the Social Security Administration, retirement benefits for those with average earnings will likely replace about 40% of your pre-retirement earnings. Those who had above-average earnings in their working years can expect a lower replacement rate, and vice versa.

Retirement18) You can increase your Social Security checks by delaying starting to collect your benefits. For every year after your full retirement age that you delay starting to collect (up to age 70), your ultimate monthly check will grow by about 8%, giving you the opportunity to increase your benefits by about 24%.

19) On the other hand, if you start collecting early, at age 62, you can expect your checks to be about 30% smaller. That’s not so terrible, though, because you’ll collect many more of them. And the system is designed to be a wash for those who live average-length lives.

20) If you’re worried about running out of money in retirement, you may be surprised at how much income you can buy through an annuity. Here’s the kind of income that various people might be able to secure in the form of an immediate fixed annuity in the current economic environment:

Person/People

Cost

 Monthly Income Annual Income Equivalent
65-year-old man $100,000 $560 $6,720
70-year-old man $100,000 $655 $7,860
70-year-old woman $100,000 $600 $7,200
65-year-old couple $200,000 $958 $11,496
70-year-old couple $200,000 $1,051 $12,612
75-year-old couple $200,000 $1,216 $14,592

DATA SOURCE: IMMEDIATEANNUITIES.COM.

21) Retirement doesn’t always play out as expected. A 2014 MassMutual survey found that 10% of retirees were surprised to find themselves lonely, bored, with a lost sense of purpose, and/or depressed in retirement. You may be tired of working, but the routine of having a place to go and things to do every day may be serving you well.

22) Finally, here’s some good news, despite all the worrisome findings above: That same survey found that 72% of retired respondents reported feeling quite happy or extremely happy in retirement.

To a great degree, whether you’re happy or frustrated in retirement will depend on how well you prepare for it — financially and psychologically. It can help to get and stay healthy throughout your life and to always have an active social life. And, of course, save aggressively for your golden years.

Debt Cancellation May be Taxable

Debt Cancellation May be Taxable

The IRS issued Tax Tip 2017-23 providing information about debt cancellation.  If a lender cancels part or all of a debt, a taxpayer must generally consider this as income. However, the law allows an exclusion that may apply to homeowners who had their mortgage debt canceled in 2016.

Here are 10 tips about debt cancellation:

  1. Main Home. If the canceled debt was a loan on a taxpayer’s main home, they may be  able to exclude the canceled amount from their income. They must have used the loan to buy, build or substantially improve their main home to qualify. Their main home must also secure the mortgage.
  2. Loan Modification. If a taxpayer’s lender canceled or reduced part of their mortgage balance through a loan modification or ‘workout,’ the taxpayer may be able to exclude that amount from their income. They may also be able to exclude debt discharged as part of the Home Affordable Modification Program, or HAMP. The exclusion may also apply to the amount of debt canceled in a foreclosure.
  3. Refinanced Mortgage. The exclusion may apply to amounts canceled on a refinanced mortgage. This applies only if the taxpayer used proceeds from the refinancing to buy, build or substantially improve their main home and only up to the amount of the old mortgage principal just before refinancing. Amounts used for other purposes do not qualify.
  4. Other Canceled Debt. Other types of canceled debt such as second homes, rental and business property, credit card debt or car loans do not qualify for this special exclusion. On the other hand, there are other rules that may allow those types of canceled debts to be nontaxable.
  5. Form 1099-C. If a lender reduced or canceled at least $600 of a taxpayer’s debt, the taxpayer should receive Form 1099-C, Cancellation of Debt, by Feb. 1. This form shows the amount of canceled debt and other information.
  6. Form 982. If a taxpayer qualifies, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. They should file the form with their income tax return.
  7. IRS.gov Tool. Taxpayers should use the Interactive Tax Assistant tool – Do I Have Cancellation of Debt Income on My Personal Residence? – on IRS.gov to find out if their canceled mortgage debt is taxable.
  8. Exclusion Extended. The law that authorized the exclusion of cancelled debt from income was extended through Dec. 31, 2016.
  9. IRS Free File.  IRS e-file is fastest, safest and easiest way to file. Taxpayers can use IRS Free File to e-file their tax return for free. If they earned $64,000 or less, they can use brand name tax software. The software does the math and completes the right forms for them. If they earned more than $64,000, they can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms. It is best for those who are used to doing their own taxes. Free File is available only on IRS.gov/freefile.

More Information. For more on this topic see Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments.

$1 Billion IRS Unclaimed Refunds for 2013

IRS Has Refunds Totaling $1 Billion for People Who Have Not Filed a 2013 Federal Income Tax Return

The IRS Issued the Following:  Refund: Claim It or Lose It!

WASHINGTON — The Internal Revenue Service announced today that unclaimed federal income tax refunds totaling more than $1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2013 federal income tax return.

To collect the money, taxpayers must file a 2013 tax return with the IRS no later than this year’s tax deadline, Tuesday, April 18.

“We’re trying to connect a million people with their share of 1 billion dollars in unclaimed refunds for the 2013 tax year,” said IRS Commissioner John Koskinen. “People across the nation haven’t filed tax returns to claim these refunds, and their window of opportunity is closing soon. Students and many others may not realize they’re due a tax refund. Remember, there’s no penalty for filing a late return if you’re due a refund.”

The IRS estimates the midpoint for potential refunds for 2013 to be $763; half of the refunds are more than $763 and half are less.

In cases where a tax return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If they do not file a return within three years, the money becomes the property of the U.S. Treasury. For 2013 tax returns, the window closes April 18, 2017. The law requires taxpayers to properly address mail and postmark the tax return by that date.

The IRS reminds taxpayers seeking a 2013 refund that their checks may be held if they have not filed tax returns for 2014 and 2015. In addition, the refund will be applied to any amounts still owed to the IRS, or a state tax agency, and may be used to offset unpaid child support or past due federal debts, such as student loans.

By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2013. Many low-and-moderate income workers may have been eligible for the Earned Income Tax Credit (EITC). For 2013, the credit was worth as much as $6,044. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2013 were:

  • $46,227 ($51,567 if married filing jointly) for those with three or more qualifying children;
  • $43,038 ($48,378 if married filing jointly) for people with two qualifying children;
  • $37,870 ($43,210 if married filing jointly) for those with one qualifying child, and;
  • $14,340 ($19,680 if married filing jointly) for people without qualifying children.

Current and prior year tax forms (such as the Tax Year 2013 Form 1040, 1040A and 1040EZ) and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free: 800- TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2013, 2014 or 2015 should request copies from their employer, bank or other payer.

Taxpayers who are unable to get missing forms from their employer or other payer should go to IRS.gov and use the “Get Transcript Online” tool to obtain a Wage and Income transcript.  Taxpayers can also file Form 4506-T to request a transcript of their 2013 income. A Wage and Income transcript shows data from information returns we receive such as Forms W-2, 1099, 1098 and Form 5498, IRA Contribution Information. Taxpayers can use the information on the transcript to file their tax return.

State-by-state estimates of individuals who may be due 2013 tax refunds: 

State or District Estimated

Number of

Individuals

 Median

Potential

Refund

 Total

Potential

Refunds*
Alabama 18,100 $729 $17,549,000
Alaska 4,700 $917 $5,665,000
Arizona 24,800 $650 $22,642,000
Arkansas 9,900 $722 $9,571,000
California 97,200 $696 $93,406,000
Colorado 20,200 $699 $19,454,000
Connecticut 11,500 $846 $12,691,000
Delaware 4,300 $776 $4,321,000
District of Columbia 3,200 $762 $3,341,000
Florida 66,900 $776 $67,758,000
Georgia 34,400 $671 $32,082,000
Hawaii 6,500 $793 $6,876,000
Idaho 4,500 $619 $3,919,000
Illinois 40,000 $834 $42,673,000
Indiana 21,700 $788 $22,060,000
Iowa 10,200 $808 $10,193,000
Kansas 11,100 $746 $10,700,000
Kentucky 12,900 $772 $12,627,000
Louisiana 20,300 $767 $21,209,000
Maine 4,000 $715 $3,645,000
Maryland 22,200 $770 $23,080,000
Massachusetts 23,000 $838 $24,950,000
Michigan 33,600 $763 $33,998,000
Minnesota 15,600 $691 $14,544,000
Mississippi 10,400 $702 $10,041,000
Missouri 22,400 $705 $20,787,000
Montana 3,600 $727 $3,480,000
Nebraska 5,300 $745 $5,084,000
Nevada 12,300 $753 $12,078,000
New Hampshire 4,400 $892 $4,930,000
New Jersey 29,900 $873 $33,207,000
New Mexico 8,100 $753 $8,162,000
New York 54,700 $847 $59,416,000
North Carolina 29,800 $656 $26,874,000
North Dakota 2,900 $888 $3,209,000
Ohio 36,000 $749 $34,547,000
Oklahoma 17,700 $773 $17,979,000
Oregon 15,500 $658 $14,188,000
Pennsylvania 39,400 $835 $41,078,000
Rhode Island 2,900 $796 $2,906,000
South Carolina 12,100 $674 $11,267,000
South Dakota 2,700 $823 $2,709,000
Tennessee 19,500 $743 $18,829,000
Texas 104,700 $829 $115,580,000
Utah 7,900 $667 $7,443,000
Vermont 2,000 $747 $1,859,000
Virginia 29,000 $752 $29,578,000
Washington 27,600 $829 $30,330,000
West Virginia 5,000 $855 $5,258,000
Wisconsin 12,700 $675 $11,619,000
Wyoming 2,800 $911 $3,189,000
Totals 1,042,100 $763 $1,054,581,000

 * Excluding the Earned Income Tax Credit and other credits. 

Get Credit for Making a Home Energy Efficient

Get Credit for Making a Home Energy Efficient

IRS Tax Tip 2017-21

Taxpayers who made certain energy efficient improvements to their home last year may qualify for a tax credit this year. Here are some key facts to know about home energy tax credits:

Non-Business Energy Property Credit

  • Part of this credit is worth 10 percent of the cost of certain qualified energy-saving items added to a taxpayer’s main home last year. Qualified improvements include adding insulation, energy-efficient exterior windows and doors, and certain roofs. Do not include the cost to install these items.
  • The other part of the credit is not a percentage of the cost. It includes the installation costs of certain high-efficiency heating and air-conditioning systems, high-efficiency water heaters and stoves that burn biomass fuel. The credit amount for each type of property has a different dollar limit.
  • This credit has a maximum lifetime limit of $500. Taxpayers may only use $200 of this limit for windows.
  • A taxpayer’s main home must be located in the U.S. to qualify for the credit. The non-business energy property credit is only available for existing homes.
  • Be sure to have the written certification from the manufacturer that their product qualifies for this tax credit. They usually post it on their website or include it with the product’s packaging. Taxpayers can use this to claim the credit. Do not attach it to a tax return. Keep it with tax records.
  • Taxpayers may claim the credit on their 2016 tax return if they didn’t reach the lifetime limit in past years. Under current law, Dec. 31, 2016, was the deadline for qualifying improvements to the taxpayer’s main U. S. home.

Residential Energy Efficient Property Credit

  • This tax credit is 30 percent of the cost of alternative energy equipment installed on or in a home. This includes the cost of installation.
  • Qualified equipment includes solar hot water heaters, solar electric equipment, wind turbines and fuel cell property.
  • There is no dollar limit on the credit for most types of property. If the credit is more than the tax owed, carry forward the unused portion of this credit to next year’s tax return.
  • The home must be in the U.S. It does not have to be a taxpayer’s main home, unless the alternative energy equipment is qualified fuel cell property. The residential energy efficient property credit is available for both existing homes and homes under construction.
  • This credit is available through 2016.

If you need assistance, please call Prince Hansen Gray & Associates PLLC at (801) 892-5900.

Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.

International Taxpayers Tax Obligations and Rules for Tax Withholding Agents

IRS Reminds International Taxpayers of Tax Obligations; Clarifies Rules for Tax Withholding Agents

International TaxpayersWASHINGTON – The Internal Revenue Service today reminded non-U.S. citizens who may have taxable income, such as international students and scholars who may be working or receiving scholarship funds, that they may have special requirements to file a U.S. tax return.

The IRS also reminded withholding agents — such as payroll professionals or universities — that accurately filed Forms 1042-S help speed any refunds due to their non-U.S. citizen taxpayers. Errors on forms or returns could result in some refunds being delayed.

What Non-U.S. Citizen Taxpayers Must Do

The Internal Revenue Code generally requires non-U.S. citizens, whom the code defines as either resident or non-resident aliens, who are engaged in a trade or business within the U.S. to file tax returns. Non-resident aliens such as foreign students, teachers or trainees temporarily in the United States on F, J, M or Q visas are considered engaged in a trade or business.

Most individuals in F-1, J-1, M-1, Q-1 and Q-2 non-immigrant status are eligible to be employed in the U.S. and are eligible to apply for a Social Security number if they are actually employed in the United States. Those not eligible for an SSN but who have a tax filing requirement may request an Individual Taxpayer Identification Number from the IRS.

The non-U.S. citizen’s name must be reported exactly as it appears on the official documentation provided to the withholding agent (such as a Social Security Administration card or some other form of official governmental documentation).

Filing a Form 1040-NR or 1040NR-EZ is required by non-U.S. citizens who have a taxable event such as:

  • A taxable scholarship or fellowship, as described in Chapter 1 of Publication 970, Tax Benefits for Education;
  • Income partially or totally exempt from tax under the terms of a tax treaty; and/or
  • Any other income, which is taxable under the Internal Revenue Code.

Non-U.S. citizens also must attach one copy (generally Copy B) for each Form 1042-S received to their tax returns. Non-U.S. citizens should review the Form 1042-S to ensure it accurately reflects their name and income. If the form does not contain accurate information, they must contact the withholding agent for an amended Form 1042-S.

What Withholding Agents Must Do

Generally, non-U.S. citizens who have taxable income also may have withholding of taxes by the source of their income. Withholding agents are required to complete Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding.

Withholding agents must provide five copies of the Form 1042-S. Copy A should go to the IRS; Copies B, C and D to the recipient of the income; and copy E should be retained by the withholding agent. All information, including the name of the taxpayer, must match exactly on all copies of Form 1042-S.

If withholding agents create a substitute Form 1042-S, all five copies must be in the same physical format. The size, shape and format of any substitute form must adhere to the rules of Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns. The official Form 1042-S is the standard for substitute forms.

A common error is to have a Form 1042-S listing two or more recipients in box 13a. The 2016 instructions to Form 1042-S have been updated to clarify that in the case of joint owners, Form 1042-S can only list one of the owners in box 13a.

Withholding agents should review Fact Sheet 2017-3, where they can find the latest changes to Form 1042-S instructions and common errors that delay processing of tax returns.

Taxes and Name Changes? – How it Impacts Taxes

Taxes and Name Changes? How It Impacts Taxes  

A name change can have an impact on taxes. All the names on a taxpayer’s tax return must match Social Security Administration records. A name mismatch can delay a tax refund. Here’s what taxpayers should know if they changed their name:

  • Reporting Name Changes. Got married and now using a new spouse’s last name or hyphenate a name? Divorced and now back to using a former last name? In either case, taxpayers should notify the SSA of a name change. That way the new name on IRS records will match the SSA records.
  • Making Dependent’s Name Change. Notify the SSA if a dependent had a name change. For example, if a taxpayer adopted a child and the child’s last name changed. If the child does not have a Social Security number, the taxpayer may use an Adoption Taxpayer Identification Number on their tax return. An ATIN is a temporary number. Apply for an ATIN by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, with the IRS. Visit IRS.gov to get the form.
  • Getting a New SS Card. File Form SS-5, Application for a Social Security Card. The form is on SSA.gov or by calling 800-772-1213. The taxpayer’s new card will reflect the name change.

All taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.

IRS Recaps “Dirty Dozen” List of Tax Scams for 2017

IRS Recaps “Dirty Dozen” List of Tax Scams for 2017

Tax Scams for 2017Each year, the Internal Revenue Service issues a list of the top 12 tax-related scams it sees throughout the year. The IRS “Dirty Dozen” highlights various schemes that taxpayers may encounter anytime, many of which peak during tax-filing season.

Taxpayers need to guard against ploys that steal their personal information, scam them out of money or talk them into engaging in questionable behavior with their taxes.

Here is a recap of this year’s “Dirty Dozen” scams:

Phishing: Taxpayers need to be on guard against fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a tax bill or refund. Don’t click on emails or fake websites claiming to be from the IRS. They may be nothing more than scams to steal personal information. (IR-2017-15)

Phone Scams: Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent years as con artists threaten taxpayers with police arrest, deportation and license revocation, among other things. (IR-2017-19)

Identity Theft: Taxpayers need to watch out for identity theft, especially around tax time. The IRS aggressively pursues criminals that file fraudulent returns using someone else’s Social Security number. Though the agency is making progress on this front, taxpayers still need to be extremely cautious and do everything they can to avoid becoming victimized. (IR-2017-22)

Return Preparer Fraud: Be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest high-quality service. There are some dishonest preparers who set up shop each filing season to perpetrate refund fraud, identity theft and other scams that hurt taxpayers. (IR-2017-23)

Fake Charities: Be on guard against groups masquerading as charitable organizations to attract donations from unsuspecting contributors. Look out for charities with names similar to familiar or nationally-known organizations. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate and currently eligible charities. IRS.gov has the tools taxpayers need to check out the status of charitable organizations. (IR-2017-25)

Inflated Refund Claims: Taxpayers should be cautious of anyone promising inflated refunds. Avoid preparers who ask taxpayers to sign a blank return, promise a big refund before looking at any records or charge fees based on a percentage of the refund. Fraudsters use flyers, advertisements, phony storefronts and word of mouth via community groups where trust is high to find their victims. (IR-2017-26)

Excessive Claims for Business Credits: Avoid improperly claiming the fuel tax credit. This tax benefit is generally not available to most taxpayers. The credit is usually limited to off-highway business use, including use in farming. Taxpayers should also avoid misuse of the research credit. Improper claims often involve failures to participate in or substantiate qualified research activities and satisfy the requirements related to qualified research expenses. (IR-2017-27)

Falsely Padding Deductions on Returns: Taxpayers should avoid the temptation to falsify deductions or expenses on their tax returns in order to pay less than they owe or  receive larger refunds. Think twice before overstating deductions such as charitable contributions and business expenses or improperly claiming credits such as the Earned Income Tax Credit or Child Tax Credit. (IR-2017-28)

Falsifying Income to Claim Credits: Don’t invent income to erroneously qualify for tax credits, such as the Earned Income Tax Credit. Taxpayers should file the most accurate return possible because they are legally responsible for what is on their return. Claiming false income can lead to taxpayers facing large bills to pay back taxes, interest and penalties. In some cases, they may even face criminal prosecution. (IR-2017-29)

Abusive Tax Shelters: Don’t use abusive tax structures to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The vast majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true. When in doubt, seek an independent opinion if offered complex products. (IR-2017-31)

Frivolous Tax Arguments: Don’t use frivolous tax arguments to avoid paying tax. Promoters of such schemes encourage taxpayers to make unreasonable and outlandish claims, even though they have been repeatedly thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law or disregard their responsibility to pay taxes. The penalty for filing a frivolous tax return is $5,000. (IR-2017-33)

Offshore Tax Avoidance: The recent string of successful enforcement actions against offshore tax cheats — and the financial organizations that help them — show that it’s a bad bet to hide money and income offshore. Taxpayers are best served by coming in voluntarily and taking care of their tax-filing responsibilities. The IRS offers the Offshore Voluntary Disclosure Program to enable people to catch up on their filing and tax obligations. (IR-2017-35)

Top Tips to Prepare for Tax Season

Top Tips to Prepare for Tax Season

It’s here again, the most wonderful time of the year – tax season. Uncle Sam is the reason for the season, and the IRS is ready to give everyone a nice tax bill. Fortunately for you, we have the top tax tips, so you don’t end up with an excessive bill.

  1. Shield Your Personal Information – You can get an Identity Protection (IP) PIN from the IRS to help protect your identity. An IP PIN is a six-digit number that helps prevent fraudulent use of your Social Security number on federal income tax returns. The IP PIN itself changes every year, and you’ll receive notification in the mail of your new PIN every year. You can learn more about IP PINs here at the IRS’s website: https://www.irs.gov/individuals/get-an-identity-protection-pin
  2. Keep Your Check in Check – Are you getting a huge refund, or none at all? If you are at either extreme, then it’s high time you look at your withholdings and consider changes. You’ll need to get a new Form W-4 from your employer and complete it to make the changes. Remember that tax withholding is a lot like porridge – best served just right. Withhold too much, and you’re essentially giving the government an interest-free loan. Withhold too little, and you’ll end up not only owing money but potentially interest and perhaps even penalties.
  3. Maximize Retirement Plans – Are you offered a retirement plan where you work? If so, a smart tax step is to do whatever you can to maximum your contributions, especially if your employer matches your contribution. Not only are you giving up free money through the matched contributions, but you are missing out on the opportunity to build a tax-deferred nest egg.
  4. Are You a Globetrotter? – Do you have a foreign bank account anywhere outside the United States? Did you have more than $10,000 in that account – and by that, I mean ever at any point in time, not just at the end of the year? If you answered yes to both of these, then make sure you file what accountants colloquially refer to as an FBAR – or a foreign bank account reporting form. The new name for this form is FinCEN Report 114.

    It can get even more detailed from here. If you and your spouse held “specified foreign assets” of more than $100,000 on the last day of the tax year or more than $150,000 at any time during the year, then you’ll also need to file a Form 8937, Statement of Specified Foreign Financial Assets.

    There is a slew of other foreign account reporting requirements – for example, if you own an interest in a foreign business or are the beneficiary of a foreign trust. The penal ties for noncompliance with foreign asset and account reporting can be high and repercussions severe.

  5. Clean Out the Closet – There’s a good chance you donated some old clothing, furniture or household items to charity. After all, noncash charitable donations are one of the most common deductions people take on Schedule A. Unfortunately, they are also one of the most abused – and the IRS knows it. Whether it’s because you moved or just wanted to declutter and simplify your life, the key is keeping good records. Deductions for donated items are limited to their fair market value and they must be in good condition; you don’t get a deduction for junk. The organization to which you donate should give you a receipt to prove your donation, but it also is a good idea to keep an itemized list of what you donated and even take pictures of the items, especially if the value is substantial.

Another tip: The IRS tends to scrutinize extra-large deductions. In other words, be careful when you claim a noncash charitable deduction that is a lot bigger than most people in similar situations. You can check out the IRS’s published statistics on Taxpayers with Noncash Charitable Contributions here: https://www.irs.gov/uac/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income

Conclusion

Keep these tips in mind to make tax season less taxing when you file. Remember, working with your accountant is the best way to minimize taxes and make sure you don’t pay a penny more than you should

Which States Require ID Before You Can Efile Your Return?

States Require Driver’s License for E-Filing Tax Returns

Which States Require ID Before You Can Efile Your Return?For individual filers who are required to e-file their income tax returns, don’t be surprised when your CPA tells you a copy of your driver’s license or other acceptable form of ID is required in order to efile or process your tax return.

During this tax filing season, more and more states are requiring tax return preparers to include driver’s license numbers (or another form of acceptable identification) on e-filings as a measure to help combat identity and refund theft.

In states that require it, failing to include this mandatory information will prevent your tax preparer from e-filing your return. (On the bright side, providing this information may help state taxing authorities process tax returns more quickly).

Currently, the following states either require or request a driver’s license number or other acceptable form of identification to be included with the e-filing of state returns:

Alabama

California

Illinois

Kansas

Louisiana

New York

Ohio

Virginia

Wisconsin

It is optional, for now, in New Jersey and Pennsylvania.

However, some tax preparation software programs may still require the ID in order to process returns, regardless of the state filing requirements. So, your tax preparer may still request you to provide an acceptable ID even if you do not file in any of the above states because their software requires an ID before it will create a return for efiling.

Currently, a driver’s license or other acceptable ID is not required to file a federal return.