PDF document

- 1 -

               Userid: CPM                 Schema: tipx         Leadpct: 100% Pt. size: 8   Draft            Ok to Print
AH XSL/XML     Fileid: … ons/P516/201811/A/XML/Cycle03/source                             (Init. & Date) _______

Page 1 of 9                                                                               17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

             Publication 516
             (Rev. November 2018)                                             Contents
             Cat. No. 15020M                                                  Reminders                     
Department 
of the                                                                        Introduction                  
Treasury
Internal     U.S. Government                                                  U.S. Tax Return                
Revenue                                                                       Filing Information                  
Service                                                                       U.S. Government Payments                        
             Civilian                                                         Allowances, Differentials, and 
                                                                                          Special Pay              
                                                                              Deductions and Credits — 
             Employees                                                                    Business Expenses         
                                                                              Deductions and Credits — 
                                                                                          Nonbusiness Expenses       
             Stationed 
                                                                              Local (Foreign) Tax Return            
             Abroad                                                           How To Get Tax Help                

                                                                              Index                            

                                                                              Future Developments
                                                                              For the latest information about developments 
                                                                              related to Pub. 516, such as treaties effective 
                                                                              after it was published, go to IRS.gov/Pub516.

                                                                              What’s New
                                                                              No miscellaneous itemized deductions al-
                                                                              lowed.      You can no longer claim any miscella-
                                                                              neous itemized deductions, including the de-
                                                                              duction  for  unreimbursed  job  expenses. 
                                                                              Miscellaneous  itemized  deductions  are  those 
                                                                              deductions that would have been subject to the 
                                                                              2%-of-adjusted-gross-income limitation.
                                                                              Unreimbursed  employee  expenses.          Only 
                                                                              Armed Forces reservists, qualified performing 
                                                                              artists, fee-basis state or local government offi-
                                                                              cials, and employees with impairment-related 
                                                                              work expenses can deduct certain expenses 
                                                                              such as travel expenses, and other expenses 
                                                                              connected to your employment. Due to the sus-
                                                                              pension of miscellaneous itemized deductions 
                                                                              subject to the 2% floor under section 67(a), em-
                                                                              ployees who do not fit into one of the listed cat-
                                                                              egories cannot deduct employee business ex-
                                                                              penses. See the categories listed under    Other 
                                                                              Employee Business Expenses.
                                                                              Moving expense deduction suspended, ex-
                                                                              cept  for  certain  Armed  Forces  members. 
                                                                              Beginning in 2018, as part of a provision con-
                                                                              tained in the Tax Cuts and Jobs Act of 2017, 
                                                                              the moving expense deduction for tax years af-
                                                                              ter 2017, and before January 1, 2026, is tempo-
                                                                              rarily suspended, except if you are a member of 
                                                                              the Armed Forces on active duty and, due to a 
                                                                              military order, you move because of a perma-
                                                                              nent change of station.

             Get forms and other information faster and easier at:            Reminders
             • IRS.gov (English)         • IRS.gov/Korean (한국어)               Combat zone participants.     If you were a civil-
             • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)          ian who served in a combat zone or qualified 
             • IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (TiếngViệt)     hazardous  duty  area  in  support  of  the  U.S. 
                                                                              Armed Forces, you can get certain extensions 

Dec 20, 2018

- 2 -

Page 2 of 9 Fileid: … ons/P516/201811/A/XML/Cycle03/source 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

of deadlines for filing tax returns, paying taxes, Ordering forms and publications. Visit allowed additional time to file and, in some cir-
filing claims for refund, and doing certain other IRS.gov/FormsPubs to download forms and cumstances, pay your tax. You must pay inter-
tax-related acts. For details, see Pub. 3, Armed publications. Otherwise, you can go to IRS.gov/ est on any tax not paid by the regular due date.
Forces’ Tax Guide. OrderForms to order current and prior-year
forms and instructions. Your order should arrive Your return is considered filed on time if it is
Death due to terrorist or military action. within 10 business days. mailed from and officially postmarked in a for-
U.S. income taxes are forgiven for a U.S. Gov-
ernment civilian employee who dies as a result Tax questions. If you have a tax question eign country on or before the due date (includ-
of wounds or injuries incurred while employed not answered by this publication, check ing extensions), or given to a designated inter-
by the U.S. Government. The wounds or inju- IRS.gov and How To Get Tax Help at the end of national private delivery service before midnight
ries must have been caused by terrorist or mili- this publication. of the last date prescribed for filing. See your
tary action directed against the United States or tax form instructions for a list of private delivery
services that have been designated by the IRS
its allies. The taxes are forgiven for the de- Useful Items to meet this “timely mailing as timely filing/
ceased employee’s tax years beginning with You may want to see: paying” rule for tax returns and payments.
the year immediately before the year in which
the wounds or injury occurred and ending with
the year of death. Publication If your return is filed late, the postmark or
If the deceased government employee and 3 3 Armed Forces’ Tax Guide delivery service date does not determine the
date of filing. In that case, your return is consid-
the employee’s spouse filed a joint return, only 54 54 Tax Guide for U.S. Citizens and ered filed when it is received by the IRS.
the decedent’s part of the joint tax liability is for- Resident Aliens Abroad
given.
For additional details, see Pub. 559, Survi- 463 463 Travel, Gift, and Car Expenses Extensions
vors, Executors, and Administrators. 505 505 Tax Withholding and Estimated Tax You may be able to get an extension of time to
Form 8938. If you have or had foreign financial 514 514 Foreign Tax Credit for Individuals file your return and pay your tax.
assets, you may have to file Form 8938 with
your return. See Foreign Bank Accounts, later. 519 519 U.S. Tax Guide for Aliens Automatic 2-month extension. You can get
521 521 Moving Expenses an automatic 2-month extension (to June 15, for
a calendar year return) to file your return and
Introduction 523 523 Selling Your Home pay your tax if you are a U.S. citizen or resident
If you are a U.S. citizen working for the U.S. and, on the regular due date of your return, you
Government, including the foreign service, and Form (and Instructions) are living outside the United States and Puerto
Rico and your main place of business or post of
you are stationed abroad, your income tax filing Schedule A Schedule A (Form 1040) Itemized duty is outside the United States and Puerto
requirements are generally the same as those Deductions Rico. To get this extension, you must attach a
for citizens and residents living in the United 1040 1040 U.S. Individual Income Tax Return statement to your return explaining how you
States. You are taxed on your worldwide in-
qualified. You will owe interest on any tax not
come, even though you live and work abroad. 1116 1116 Foreign Tax Credit paid by the regular due date of your return.
However, you may receive certain allowan-
ces and have certain expenses that you gener- 4868 4868 Application for Automatic Extension Married taxpayers. If you file a joint return,
ally do not have while living in the United of Time To File U.S. Individual either you or your spouse can qualify for the au-
States. This publication explains: Income Tax Return tomatic extension. If you and your spouse file
• Many of the allowances, reimbursements, 8833 8833 Treaty-Based Return Position separate returns, the extension applies only to
and property sales you are likely to have, Disclosure Under Section 6114 or the spouse who qualifies.
and whether you must report them as in- 7701(b)
come on your tax return, and Additional extension. You can apply for an
• Many of the expenses you are likely to 8938 8938 Statement of Specified Foreign additional extension of time to file your return by
have, such as moving expenses and for- Financial Assets filing Form 4868. You must file Form 4868 by
eign taxes, and whether you can deduct FinCEN Form 114 FinCEN Form 114 Report of Foreign the due date for your income tax return.
them on your tax return. Bank and Financial Accounts (FBAR) Generally, you must file it by April 15. How-
ever, if you qualify for the automatic 2-month
U.S. possessions. This publication does not extension, you generally must file Form 4868 by
cover the rules that apply if you are stationed in June 15. Check the box on line 8 of Form 4868.
American Samoa, Guam, the Commonwealth of U.S. Tax Return
the Northern Mariana Islands, the Virgin Is- Payment of tax. You should estimate and
lands, or Puerto Rico. That information is in Filing Information pay any additional tax you owe when you file
Pub. 570, Tax Guide for Individuals With In- Form 4868 to avoid being charged a late-pay-
come From U.S. Possessions. If you are a U.S. citizen or green card holder liv- ment penalty. The late-payment penalty applies
ing or traveling outside the United States, you if, through withholding, etc., you paid less than
Comments and suggestions. We welcome are generally required to file income tax returns 90% of your actual tax liability by the original
your comments about this publication and your in the same way as those residing in the United due date of your income tax return. Even if the
suggestions for future editions. States. However, the special rules explained in late-payment penalty does not apply, you will
You can send us comments through the following discussions may apply to you. See be charged interest on any unpaid tax liability
IRS.gov/FormComments. Or you can write to: also Tax Treaty Benefits, later. from the original due date of the return until the
tax is paid.
Internal Revenue Service
Tax Forms and Publications When To File and Pay Electronic filing. You can file for the addi-
1111 Constitution Ave. NW, IR-6526 tional extension by phone, using your home
Washington, DC 20224 Most individual tax returns cover a calendar computer, or through a tax professional. See
year, January through December. The regular Form 4868 for more information.
due date for these tax returns is April 15 of the
Although we can’t respond individually to following year. If April 15 falls on a Saturday, Limit on additional extensions. You gener-
each comment received, we do appreciate your Sunday, or legal holiday, your tax return is con- ally cannot get a total extension of more than 6
feedback and will consider your comments as sidered timely filed if it is filed by the next busi- months. However, if you are outside the United
we revise our tax forms, instructions, and publi- ness day that is not a Saturday, Sunday, or le- States and meet certain tests, you may be able
cations. gal holiday. If you get an extension, you are to get a longer extension.
Page 2 Publication 516 (November 2018)

- 3 -

Page 3 of 9 Fileid: … ons/P516/201811/A/XML/Cycle03/source 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

For more information, see Pub. 54. Employees of post exchanges, etc. If you Generally, pay differentials are given for em-
are an employee of an Armed Forces post ex- ployment under adverse conditions (such as
change, officers’ and enlisted personnel club, severe climate) or because the post of duty is
Foreign Bank Accounts Embassy commissary, or similar instrumentality located in a hazardous or isolated area that
FinCEN Form 114. You must file Form 114, of the U.S. Government, the earnings you re- may be outside the United States. The area
Report of Foreign Bank and Financial Accounts ceive are paid by the U.S. Government. This is does not have to be a qualified hazardous duty
(FBAR), if you had any financial interest in, or true whether they are paid from appropriated or area as discussed in Pub. 3. Pay differentials in-
signature or other authority over a bank, securi- nonappropriated funds. These earnings are not clude:
ties, or other financial account in a foreign coun- eligible for the foreign earned income exclusion • Post differentials,
try. You do not need to file the report if the as- or the foreign housing exclusion/deduction. • Special incentive differentials, and
sets are with a U.S. military banking facility • Danger pay.
operated by a financial institution or if the com- Tax Treaty Benefits Foreign areas allowances. Allowances (other
bined assets in the account(s) are $10,000 or than post differentials) received under the fol-
less during the entire year. Most income tax treaties contain an article relat- lowing laws are tax free.
Form 114 is filed electronically with the Fi- ing to remuneration from government services. • Chapter 9 of Title I of the Foreign Service
nancial Crimes Enforcement Network (Fin- Even if you are working in a foreign country with Act of 1980.
CEN). See the filing instructions at https:// which the United States has an income tax • Section 4 of the Central Intelligence
bsaefiling.fincen.treas.gov. treaty in force and the treaty article that applies Agency Act of 1949, as amended.
to government services says that your govern- • Title II of the Overseas Differentials and Al-
Form 8938. You also may be required to file ment pay is taxable only in the foreign country, lowances Act.
Form 8938 with your U.S. income tax return to the treaty will likely contain a “saving clause,” • Subsection (e) or (f) of the first section of
report your interest in foreign bank accounts which provides that the United States may tax the Administrative Expenses Act of 1946,
and other specified foreign financial assets. For its citizens and its residents as if the treaty had as amended, or section 22 of such Act (5
taxpayers living abroad, you generally do not not come into effect. In some treaties, the gov- U.S.C. sections 5726(b); 5727(b), (d)–(f);
have to file Form 8938 unless the total value of ernment service article is an exception to the and 5913).
your specified foreign financial assets is more saving clause, but often only for individuals who
than $200,000 ($400,000 if married filing jointly) are not U.S. citizens or green card holders. Your employer should not have included these
on the last day of the tax year or more than Consequently, if you are a U.S. citizen or green allowances as wages on your Form W-2. These
$300,000 ($600,000 if married filing jointly) at card holder, you will generally not be entitled to allowances cover such expenses as:
any time during the tax year. For more informa- reduce your U.S. tax on your government pay. If • Certain repairs to a leased home,
tion, see Form 8938 and its instructions. you are neither a U.S. citizen nor green card • Education of dependents in special situa-
holder, and you are treated as a resident of the tions,
U.S. Government Payments treaty country under the treaty residence article • Motor vehicle shipment,
(after application of the so-called “tie-breaker” • Separate maintenance for dependents,
Wages earned for performing services outside rule), then you may be entitled to benefits under • Temporary quarters,
the United States is foreign income, regardless the government service article. Review the • Transportation for medical treatment, and
of your employer. If you are a U.S. citizen or treaty text carefully. • Travel, moving, and storage.
resident alien, you must report all income from U.S. citizens must always file Form Allowances received by U.S. govern-
worldwide sources on your tax return unless it is TIP 1040. Non-U.S. citizens who are trea- ! ment civilian employees for the ship-
exempt by U.S. law. This applies to earned in- ted as a resident of a treaty country un- CAUTION ment of household goods and personal
come (such as wages) as well as unearned in- der the treaty residence article (after application effects to or from a post of duty under 5 U.S.C.
come (such as interest, dividends, and capital of the so-called “tie-breaker” rule) may file Form sections 5722–5724 are not exempt from tax.
gains). If you are a nonresident alien, your in- 1040NR and attach Form 8833. Allowances received by foreign service em-
come from sources outside the United States is ployees for representation expenses are also
not subject to U.S. tax. If you pay or accrue taxes to the foreign tax free under the above provisions.
country on your pay, you may be able to relieve
Foreign Earned double taxation with a foreign tax credit. Most Cost-of-living allowances. If you are sta-
Income Exclusion income tax treaties contain an article providing tioned outside the continental United States or
relief from double taxation. Many treaties con- in Alaska, your gross income does not include
tain special foreign tax credit rules for U.S. citi- cost-of-living allowances (other than amounts
Employees of the U.S. Government are not en- zens who are residents of a treaty country. For received under Title II of the Overseas Differen-
titled to the foreign earned income exclusion or more information on the mechanics of the for- tials and Allowances Act) granted by regula-
the foreign housing exclusion/deduction under eign tax credit, see Foreign Taxes, later. tions approved by the President of the United
section 911 because “foreign earned income” States. The cost-of-living portion of any other al-
does not include amounts paid by the U.S. Gov- lowance (for example, a living and quarters al-
ernment to you as an employee. But see Other Allowances, Differentials, lowance) is not included even if the underlying
Employment, later. and Special Pay allowance is included in gross income.
Cost-of-living allowances are not included on
Special Situations Most payments received by U.S. Government your Form W-2.
civilian employees for working abroad, including Federal court employees. If you are a
In the following two situations, your pay is from pay differentials, are taxable. However, certain federal court employee, the preceding para-
the U.S. Government and does not qualify for foreign areas allowances, cost of living allowan- graph also applies to you. The cost-of-living al-
the foreign earned income exclusion. ces, and travel allowances are tax free. The fol- lowance must be granted by rules similar to reg-
lowing discussions explain the tax treatment of ulations approved by the President.
U.S. agency reimbursed by foreign country. allowances, differentials, and other special pay
If you are a U.S. Government employee paid by you receive for employment abroad. American Institute in Taiwan. If you are an
a U.S. agency to perform services in a foreign
employee of the American Institute in Taiwan,
country, your pay is from the U.S. Government Pay differentials. Pay differentials you receive allowances you receive are exempt from U.S.
and does not qualify for the foreign earned in- as financial incentives for employment abroad tax if they are equivalent to tax-exempt allowan-
come exclusion or the foreign housing exclu- are taxable. Your employer should have inclu- ces received by civilian employees of the U.S.
sion/deduction. This is true even if the U.S. ded these differentials as wages on your Form Government.
agency is reimbursed by the foreign govern- W-2, Wage and Tax Statement.
ment.
Publication 516 (November 2018) Page 3

- 4 -

Page 4 of 9 Fileid: … ons/P516/201811/A/XML/Cycle03/source 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Federal reemployment payments after serv- Other Income Travel Expenses
ing with an international organization. If you
are a federal employee who is reemployed by a Other employment. If, in addition to your U.S. Subject to certain limits, you can deduct your
federal agency after serving with an interna- government pay, you receive income from a pri- unreimbursed ordinary and necessary expen-
tional organization, you must include in income vate employer or self-employment, you may ses of traveling away from home in connection
any reemployment payments you receive. qualify to claim the foreign earned income ex- with the performance of your official duties.
These payments are equal to the difference be- clusion and the foreign housing exclusion and These expenses include such items as travel
tween the pay, allowances, post differential, deduction under section 911 based on this costs, meals, lodging, baggage charges, local
and other monetary benefits paid by the inter- other income provided you meet either the bona transportation costs (such as taxi fares), tips,
national organization and the pay and other fide residence test or the physical presence and dry cleaning and laundry fees.
benefits that would have been paid by the fed- test. In addition, if your spouse is a U.S. citizen Your home for tax purposes (tax home)
eral agency had you been detailed to the inter- or resident alien who earns income in a foreign TIP is your regular post of duty regardless
national agency. country that is paid by a private employer or is of where you maintain your family
from self-employment, he or she may also qual- home. Your tax home is not limited to the Em-
Allowances or reimbursements for travel ify for the exclusion or the deduction. For more bassy, consulate, or duty station. It includes the
and transportation expenses. See How To information, see Pub. 54. entire city or general area in which your princi-
Report Business Expenses, later, for a discus- The tax treaty rules relating to income from pal place of employment is located.
sion on whether a reimbursement or allowance personal services generally apply to income
for travel or transportation is included in your in- from private employment. As discussed above,
come. the saving clause applies to you if you are a Traveling away from home. You are traveling
U.S. citizen or if you are a resident of the United away from home if you meet both of the follow-
Lodging furnished to a principal represen- States under the treaty residence article (after ing requirements.
tative of the United States. If you are a princi- application of the so-called “tie-breaker” rule). • Your duties require you to be away from
pal representative of the United States sta- the general area of your tax home substan-
tioned in a foreign country, you do not have to Sale of personal property. If you have a gain tially longer than an ordinary day’s work.
include in income the value of lodging (including from the sale of your personal property (such as • You need to get sleep or rest to meet the
utilities) provided to you as an official residence. an automobile or a home appliance), whether demands of your work while away from
However, amounts paid by the U.S. Govern- directly or through a favorable exchange rate in home. This requirement is not satisfied by
ment for your usual costs of operating and converting the proceeds to U.S. dollars, the ex- merely napping in your car.
maintaining your household are taxable. If cess of the amount received in U.S. dollars over You do not have to be away from your tax home
amounts are withheld from your pay to cover the cost or other basis of the property is a capi- for a whole day or from dusk to dawn as long as
these expenses, you cannot exclude or deduct tal gain. Capital gains are reported on Sched- your relief from duty is long enough to get nec-
those amounts from your income. ule D (Form 1040), Capital Gains and Losses. essary sleep or rest.
However, losses from sales of your personal
Peace Corps. If you are a Peace Corps volun- property, whether directly or through an unfav- Temporary assignment. If your assignment
teer or volunteer leader, some allowances you orable exchange rate, are not deductible. or job away from your tax home is temporary,
receive are taxable and others are not. your tax home does not change. You are con-
Taxable allowances. The following allow- Sale of your home. All or part of the gain on sidered to be away from home for the whole pe-
ances must be included on your Form W-2 and the sale of your main home, within or outside riod, and your travel expenses are deductible.
reported on your return as wages. the United States, may be taxable. Losses are Generally, a temporary assignment in a single
• If you are a volunteer leader, allowances not deductible. location is one that is realistically expected to
paid to your spouse and minor children You may be able to exclude from income last (and does in fact last) for 1 year or less.
while you are training in the United States. any gain up to $250,000 ($500,000 on a joint re- However, if your assignment or job is indefi-
• The part of living allowances designated turn). Generally, you must have owned and nite, the location of the assignment or job be-
by the Director of the Peace Corps as ba- used the home as your main residence for 2 of comes your new tax home and you cannot de-
sic compensation. This is the part for per- the 5 years preceding the date of sale. duct your travel expenses while there. An
sonal items such as domestic help, laundry You can choose to have the 5-year test pe- assignment or job in a single location is consid-
and clothing maintenance, entertainment riod for ownership and use suspended during ered indefinite if it is realistically expected to
and recreation, transportation, and other any period you or your spouse is serving on last for more than 1 year, whether or not it ac-
miscellaneous expenses. qualified official extended duty as a member of tually lasts for more than 1 year.
• Leave allowances. the uniformed services, as a member of the You must determine whether your assign-
• Readjustment allowances or “termination Foreign Service of the United States, as an em- ment is temporary or indefinite when you start
payments.” ployee of the intelligence community, or as an work. If you expect employment to last for 1
Taxable allowances are considered received by employee or volunteer of the Peace Corps. year or less, it is temporary unless there are
you when credited to your account. For detailed information on selling your facts and circumstances that indicate other-
home, see Pub. 523. wise. Employment that is initially temporary may
Example. Gary Carpenter, a Peace Corps become indefinite due to changed circumstan-
ces. A series of assignments to the same loca-
volunteer, gets $175 a month during his period Deductions and Credits tion, all for short periods but that together cover
of service, to be paid to him in a lump sum at
the end of his tour of duty. Although the allow- — Business Expenses a long period, may be considered an indefinite
ance is not available to him until the end of his assignment.
service, Gary must include it in his income on a Armed Forces reservists, qualified performing
monthly basis as it is credited to his account. artists, fee-basis state or local government offi- Exception for federal crime investiga
cials, and employees with impairment-related tions or prosecutions. If you are a federal
Nontaxable allowances. These generally work expenses may deduct certain expenses employee participating in a federal crime inves-
include travel allowances and the part of living such as travel expenses, transportation expen- tigation or prosecution, you may be able to de-
allowances for housing, utilities, food, clothing, ses, and other expenses connected to employ- duct travel expenses even if you are away from
and household supplies. These allowances ment. Due to the suspension of miscellaneous your tax home for more than 1 year. This excep-
should not be included on your Form W-2. itemized deductions subject to the 2% floor un- tion to the 1-year rule applies if the Attorney
These allowances are tax free whether paid by der section 67(a), employees who do not fit into General certifies that you are traveling for the
the U.S. Government or the foreign country in one of the listed categories may not deduct em- federal government in a temporary duty status
which you are stationed. ployee business expenses. For more informa- to prosecute, or provide support services for the
tion on employee business expenses, see Pub. investigation or prosecution of, a federal crime.
463.
Page 4 Publication 516 (November 2018)

- 5 -

Page 5 of 9 Fileid: … ons/P516/201811/A/XML/Cycle03/source 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Limit on meals You can generally deduct only Other Employee vidual with physical or mental disabilities for at-
50% of the cost of your unreimbursed busi- Business Expenses tendant care at his or her place of employment.
ness-related meals. Generally, entertainment They also include other expenses in connection
and entertainment-related meal expenses, If you are one of the following individuals, spe- with the place of employment that enable the
membership dues, and facilities used in con- cial rules apply to deducting your employee employee to work. See Pub. 463 for more de-
nection with these activities cannot be deduc- business expenses. tails. If you qualify, complete Form 2106 and in-
ted. clude the amount attributable to impairment-re-
Armed Forces reservist (member of a re- lated work expenses, and attach Form 2106 to
Primary purpose of trip must be for busi- serve component). You are a member of a re- your return.
ness. If your trip was entirely for business, your serve component of the Armed Forces of the
unreimbursed travel expenses are generally de- United States if you are in the Army National To deduct any expenses for travel, in-
ductible. However, if you spend some of your Guard of the United States, Army, Navy, Marine TIP cluding those certified by the Secretary
time on nonbusiness activities, part of your ex- Corps, the Air National Guard of the United of State, you must meet the rules for
penses may not be deductible. States, Air Force, Coast Guard Reserve, or the recordkeeping and accounting to your em-
If your trip was mainly personal, you cannot Reserve Corps of the Public Health Service. ployer. These rules are explained in Pub. 463.
deduct your travel expenses to and from your If you qualify, complete Form 2106 and in-
destination. This applies even if you engage in clude the amount attributable to the expenses Recordkeeping Rules
business activities while there. However, you for travel more than 100 miles away from home
can deduct any expenses while at your destina- in connection with your performance of services If you claim a deduction for unreimbursed busi-
tion that are directly related to your business. as a member of the reserves, and attach Form ness expenses, you must keep timely and ade-
2106 to your return. These reserve-related quate records of all your business expenses.
Expenses paid for others. You generally travel expenses are deductible whether or not
cannot deduct travel expenses of your spouse, you itemize deductions. See Pub. 463 for addi- For example, you must keep records and
dependents, or other individuals who go with tional details on how to report these expenses. supporting evidence to prove the following ele-
you on a trip. ments about deductions for travel expenses (in-
Fee-basis state or local government official. cluding meals and lodging while away from
Home leave. The Foreign Service Act requires You are a qualifying fee-basis official if you are home).
U.S. citizens who are members of the foreign employed by a state or political subdivision of a • The amount of each separate expense for
service to take a leave of absence after com- state and are compensated, in whole or in part, travel away from home, such as the cost of
pleting 3 years of continuous service abroad. on a fee basis. your transportation, lodging, or meals. You
This period is called “home leave” and can be
used to take care of certain personal matters If you qualify, complete Form 2106 and in- may total your incidental expenses if you
such as medical and dental checkups, buying a clude the amount attributable to the expenses list them in reasonable categories such as
new wardrobe, and visiting relatives. you incurred for services performed in that job, daily meals, gasoline and oil, and taxi
and attach Form 2106 to your return. These em- fares.
The amounts paid for your travel, meals, ployee business expenses are deductible • For each trip away from home, the dates
and lodging while on home leave are deductible whether or not you itemize deductions. you left and returned and the number of
as travel or business expenses subject to the days spent on business.
rules and limits discussed earlier. You must be Qualified performing artist. You are a quali- • The destination or area of your travel, de-
able to verify these amounts in order to claim fied performing artist if you: scribed by the name of the city, town, or
them. Amounts paid on behalf of your family similar designation.
while on home leave are personal living expen- 1. Performed services in the performing arts
ses and are not deductible. as an employee for at least two employers • The business reason for your travel or the
during the tax year, business benefit gained or expected to be
gained from your travel.
More information. See chapter 1 of Pub. 463 2. Received from at least two of those em-
for more information on travel expenses. ployers wages of $200 or more per em- How to record your expenses. Records for
ployer, proof of your expenses should be kept in an ac-
Transportation Expenses count book, diary, statement of expense, or
3. Had allowable business expenses attribut-
You can deduct allowable transportation expen- able to the performing arts of more than similar record. They should be supported by
ses that are directly related to your official du- 10% of gross income from the performing other records, such as receipts or canceled
ties. Transportation expenses include the cost arts, and checks, in sufficient detail to establish the ele-
ments for these expenses. You do not need to
of transportation by air, rail, bus, or taxi, and the 4. Had adjusted gross income of $16,000 or duplicate information in an account book or di-
cost of driving and maintaining your car. They less before deducting expenses as a per- ary that is shown on a receipt as long as your
do not include expenses you have when travel- forming artist. records and receipts complement each other in
ing away from home overnight. Those expen- an orderly manner.
ses are deductible as travel expenses and are In addition, if you are married, you must file Each expense should be recorded sepa-
discussed earlier. a joint return unless you lived apart from your rately in your records. However, some items
spouse for all of 2018. If you file a joint return, can be totaled in reasonable categories. You
Commuting. You cannot deduct your trans- you must figure requirements (1), (2), and (3) can make one daily entry for categories such as
portation costs of going between your home separately for both you and your spouse. How- taxi fares, telephone calls, meals while away
and your regular business location. These costs ever, requirement (4) applies to the combined from home, gas and oil, and other incidental
are personal commuting expenses. adjusted gross income of both you and your costs of travel. You may record tips separately
If you have one or more regular business lo- spouse. or with the cost of the service.
cations but must work at a temporary location, If you meet all the requirements for a quali-
you can deduct the costs of commuting to that fied performing artist, complete Form 2106 and Documentary evidence generally is re-
temporary place of work. include the amount attributable to perform- quired to support all lodging expenses
If you work at two or more places in the ing-arts-related expenses, and attach Form RECORDS while traveling away from home. It is
same day, you can deduct your expenses of 2106 to your return. Your performing-arts-rela- also required for any other expense of $75 or
getting from one place of work to the other. ted business expenses are deductible whether more, except transportation charges if the evi-
or not you itemize deductions. dence is not readily available. Documentary evi-
More information. For more information on dence is a receipt, paid bill, or similar proof suf-
transportation expenses, see chapter 4 of Pub. Disabled employee with impairment-related ficient to support an expense. It ordinarily will be
463. work expenses. Impairment-related work ex- considered adequate if it shows the amount,
penses are the allowable expenses of an indi-

Publication 516 (November 2018) Page 5

- 6 -

Page 6 of 9 Fileid: … ons/P516/201811/A/XML/Cycle03/source 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

date, place, and essential business character of riod allowed under the Joint Travel Regula- Other Itemized Deductions
the expense. tions.
You may be able to claim other itemized deduc-
A canceled check drawn payable to a Deductible moving expenses. Moving ex- tions not connected to your employment.
! named payee would not by itself sup- penses that can be deducted include the rea-
CAUTION port a business expenditure. You must sonable costs of: Contributions. You can deduct contributions
have other evidence to show that the check was • Moving household goods and personal ef- to qualified organizations created or organized
used for a business purpose. fects (including packing, crating, in-transit in or under the laws of the United States or its
storage, and insurance) of both you and possessions. You cannot deduct contributions
Your records must be timely. Record the el- members of your household, and you make directly to foreign organizations (ex-
ements for the expense in your account book or • Traveling (including lodging) from the for- cept for certain Canadian, Honduras, Israeli,
other record at or near the time of the expense. mer residence to the new place of resi- and Mexican charities), churches, and govern-
A timely kept record has more value than state- dence. ments. For more information, see Pub. 526,
Charitable Contributions.
ments prepared later when, generally, there is a The cost of your meals is not a deducti-
lack of accurate recall. ! ble moving expense. Real estate tax and home mortgage inter-
CAUTION
est. If you receive a tax-free housing allow-
Confidential information. You do not need to The costs of moving household goods in- ance, your itemized deductions for real estate
put confidential information relating to an ele- clude the reasonable expenses of moving taxes and home mortgage interest are limited.
ment of a deductible expense (such as the household goods and personal effects to and You must reduce the amount of each deduction
place, business purpose, or business relation- from storage. For a foreign move, the costs also that would otherwise be allowable by the
ship) in your account book, diary, or other re- include expenses of storing the goods and ef- amount of each expense that is related to the
cord. However, you do have to record the infor- fects for part or all of the period that your new tax-free allowance.
mation elsewhere at or near the time of the job location abroad continues to be your main
expense and have it available to fully prove that job location. Example. Adam is a federal employee
element of the expense.
Expenses must be reasonable. You can working overseas who receives a $6,300
More information. Recordkeeping is dis- deduct only those expenses that are reasona- tax-free housing and utility allowance. During
cussed in detail in chapter 5 of Pub. 463, ble for the circumstances of your move. For ex- the year, Adam used the allowance, with other
Travel, Gifts, and Car Expenses. ample, the costs of traveling from your former funds, to provide a home for himself. His expen-
home to your new one should be by the short- ses for this home totaled $8,400 and consisted
How To Report est, most direct route available by conventional of mortgage principal ($500), insurance ($400),
Business Expenses transportation. real estate taxes ($1,400), mortgage interest
($4,000), and utility costs ($2,100). Adam did
Members of your household. A member not have any other expenses related to provid-
As a U.S. Government employee, your busi- of your household includes anyone who has ing a home for himself.
ness expense reimbursements are generally both your former home and new home as his or Adam must reduce his deductions for home
paid under an accountable plan and are not in- her home. It does not include a tenant or em- mortgage interest and real estate taxes. He fig-
cluded in your wages on your Form W-2. If your ployee unless you can claim that person as a ures a reasonable way to reduce them is to mul-
expenses are not more than the reimburse- dependent. tiply them by a fraction: its numerator is $6,300
ments, you do not need to show your expenses (the total housing and utility allowance) and its
or reimbursements on your return. Retirees. You can deduct the costs of moving denominator is $8,400 (the total of all payments
to the United States when you permanently re- to which the housing and utility allowance ap-
However, if you do not account to your em- tire if both your former main job location and for- plies). The result is / . Adam reduces his other-3 4
ployer for a travel advance or if you do not re- mer home were outside the United States and wise allowable home mortgage interest deduc-
turn any excess advance within a reasonable its possessions. tion by $3,000 (the $4,000 he paid × / ) and his 3 4
period of time, the advance (or excess) will be otherwise allowable real estate tax deduction
included in your wages on your Form W-2. Survivors. You can deduct moving expenses by $1,050 (the $1,400 he paid × / ). He can de-3 4
for a move to the United States if you are the duct $1,000 of his mortgage interest ($4,000 −
spouse or dependent of a person whose main $3,000) and $350 of his real estate taxes
Deductions and Credits job location at the time of death was outside the ($1,400 − $1,050) when he itemizes his deduc-
— Nonbusiness Expenses United States and its possessions. The move tions.
must begin within 6 months after the decedent’s
In addition to deductible business expenses, death. It must be from the decedent’s former Exception to the reduction. If you receive
you may be entitled to deduct certain other ex- home outside the United States, and that home a tax-free housing allowance as a member of
penses. must also have been your home. the military or the clergy, you do not have to re-
duce your deductions for real estate tax and
Moving Expenses How to report moving expenses. Use Form home mortgage interest expenses you are oth-
3903 to report your moving expenses and figure erwise entitled to deduct.
If you are a member of the Armed Forces on ac- your allowable deduction. Claim the deduction Required statement. If you receive a
tive duty and you move because of a perma- as an adjustment to income on Form 1040. tax-free housing allowance and have real estate
nent change of station, you can deduct your un- tax or home mortgage interest expenses, attach
reimbursed moving expenses. Reimbursements. Generally, you must in- a statement to your tax return. The statement
clude reimbursements of, or payments for, non- must contain all of the following information.
What constitutes a permanent change of deductible moving expenses in gross income • The amount of each type of tax-free in-
station? A permanent change of station in- for the year paid. You also must include in gross come you received, such as a tax-free
cludes: income reimbursements paid to you under a housing allowance or tax-free representa-
• A move from your home to your first post of nonaccountable plan. However, there is an ex- tion allowance.
active duty, ception for the tax-free foreign areas allowan- • The amount of otherwise deductible ex-
• A move from one permanent post of duty ces described earlier under Allowances, Differ- penses attributable to each type of tax-free
to another, and entials, and Special Pay. income.
• A move from your last post of duty to your • The amount attributable to each type of
home or to a nearer point in the United Additional information. For additional infor- tax-free income that was not directly attrib-
States. The move must occur within 1 year mation about moving expenses, see Pub. 521. utable to that type of tax-free income.
of ending your active duty or within the pe-

Page 6 Publication 516 (November 2018)

- 7 -

Page 7 of 9          Fileid: … ons/P516/201811/A/XML/Cycle03/source                                                 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• An explanation of how you determined the          over provisions are discussed in detail in Pub. 
  amounts not directly attributable to each         514.
  type of tax-free income.                                                                               How To Get Tax Help
The statement must also indicate that none                                                               If you have questions about a tax issue, need 
of the amounts deducted on your return are in       Local (Foreign)
                                                                                                         help preparing your tax return, or want to down-
any way attributable to tax-free income.                                                                 load free publications, forms, or instructions, go 
                                                    Tax Return
                                                                                                         to IRS.gov and find resources that can help you 
Foreign Taxes                                       As a U.S. Government employee, you are ex-           right away.
                                                    pected to observe and fulfill all tax obligations 
If you pay or accrue taxes to a foreign govern-     imposed  by  the  host  country  government.         Tax  reform. Major  tax  reform  legislation  im-
ment, you generally can choose to either claim      Check with local tax authorities to determine        pacting  individuals,  businesses,  and  tax-ex-
them as a credit against your U.S. income tax li-   whether you are considered a tax resident of         empt entities was enacted in the Tax Cuts and 
ability or deduct them as an itemized deduction     your host country, whether you are required to       Jobs  Act  on  December  22,  2017.  Go  to 
when figuring your taxable income.                  file a host country tax return and whether you       IRS.gov/TaxReform  for  information  and  up-
        Do not include the foreign taxes paid or    owe taxes to the host country.                       dates on how this legislation affects your taxes.
!       accrued as withheld income taxes on                                                              Preparing and filing your tax return. Find 
CAUTION your Form 1040.                             Tax Treaty Benefits                                  free options to prepare and file your return on 
                                                                                                         IRS.gov or in your local community if you qual-
Foreign tax credit. Your foreign tax credit is      As discussed earlier, most income tax treaties       ify.
subject to a limit based on your taxable income     contain an article relating to remuneration from         The  Volunteer  Income  Tax  Assistance 
from foreign sources. If you choose to figure a     government  services.  Review  the  treaty  text     (VITA) program offers free tax help to people 
credit against your U.S. tax liability for the for- carefully to determine whether your U.S. Gov-        who generally make $55,000 or less, persons 
eign taxes, you generally must complete Form        ernment  remuneration  is  taxable  in  the  host    with  disabilities,  and  limited-English-speaking 
1116 and attach it to your U.S. income tax re-      country. You will first have to determine whether    taxpayers who need help preparing their own 
turn.                                               you are a resident of your host country under        tax returns. The Tax Counseling for the Elderly 
You cannot claim a credit for foreign taxes         the treaty residence article (after application of   (TCE) program offers free tax help for all tax-
paid on amounts excluded from gross income          the so-called “tie-breaker” rule).                   payers, particularly those who are 60 years of 
under the foreign earned income or housing ex-                                                           age and older. TCE volunteers specialize in an-
clusions. If all your foreign income is exempt      If you or your spouse receives income from           swering questions about pensions and retire-
from U.S. tax, you will not be able to claim a for- a private employer or self-employment, review        ment-related issues unique to seniors.
eign tax credit.                                    the tax treaty rules relating to income from per-        You can go to IRS.gov to see your options 
If, because of the limit on the credit, you         sonal services and to business profits to deter-     for preparing and filing your return which in-
cannot use the full amount of qualified foreign     mine whether that income is taxable in the host      clude the following.
taxes paid or accrued in the tax year, you are      country.                                             •   Free File. Go to IRS.gov/FreeFile to see if 
allowed to carry the excess back 1 year and                                                                  you qualify to use brand-name software to 
then forward 10 years.                              If you pay or accrue taxes to both the host              prepare and e-file your federal tax return 
                                                    country and the United States, you may be able           for free.
Exemption from limit.     You can elect to not      to  relieve  double  taxation  with  a  foreign  tax •   VITA. Go to IRS.gov/VITA, download the 
be subject to the foreign tax limit if you meet all credit. Most income tax treaties contain an arti-        free IRS2Go app, or call 800-906-9887 to 
the following conditions.                           cle providing relief from double taxation. Many          find the nearest VITA location for free tax 
• Your only foreign income is passive in-           treaties contain special foreign tax credit rules        return preparation.
  come, such as interest, dividends, and roy-       for U.S. citizens who are residents of a treaty      •   TCE. Go to IRS.gov/TCE, download the 
  alties.                                           country. For more information about the foreign          free IRS2Go app, or call 888-227-7669 to 
• The total of all your foreign taxes is not        tax credit, see Foreign Taxes, earlier.                  find the nearest TCE location for free tax 
  more than $300 ($600 for joint tax returns).                                                               return preparation.
• The foreign income and taxes are reported 
  to you on a payee statement, such as              Other Agreements                                         Getting answers to your tax ques-
  Form 1099-DIV, Dividends and Distribu-                                                                     tions. On IRS.gov, get answers to your 
  tions, or 1099-INT, Interest Income.              The United States may be a party to agree-               tax questions anytime, anywhere.
                                                    ments other than income tax treaties that may 
If you make the election, you can claim a for-      affect your tax obligations to the host country.     •   Go to IRS.gov/Help for a variety of tools 
eign tax credit without filing Form 1116. How-      For example, consular employees may be ex-               that will help you get answers to some of 
ever, you cannot carry back or carry over any       empt from host country tax under the Vienna              the most common tax questions.
unused foreign tax to or from this year.            Convention on Consular Relations or bilateral        •   Go to IRS.gov/ITA for the Interactive Tax 
                                                    consular  agreements.  Similarly,  certain  diplo-       Assistant, a tool that will ask you questions 
Foreign  tax  deduction.  You  cannot  deduct       matic staff may be exempt from host country tax          on a number of tax law topics and provide 
foreign taxes paid on income you exclude under      under the Vienna Convention on Diplomatic Re-            answers. You can print the entire interview 
the foreign earned income or housing exclu-         lations. Check with the appropriate U.S. Em-             and the final response for your records.
sions.                                              bassy for more information.                          •   Go to IRS.gov/Pub17 to get Pub. 17, Your 
                                                                                                             Federal Income Tax for Individuals, which 
Example.  Dennis and Christina are married                                                                   features details on tax-saving opportuni-
and live and work in Country X. Dennis works        Double Withholding                                       ties, 2018 tax changes, and thousands of 
for the U.S. Government and Christina is em-                                                                 interactive links to help you find answers to 
ployed by a private company. They pay income        If your U.S. Government pay is subject to with-          your questions. View it online in HTML, as 
tax to Country X on Christina’s income only.        holding in both the United States and the for-           a PDF, or download it to your mobile de-
Dennis and Christina file a joint tax return        eign country, you may reduce the amount of               vice as an eBook.
and exclude all of Christina’s income. They can-    U.S. tax that is withheld from your pay if you ex-   •   You may also be able to access tax law in-
not claim a foreign tax credit or take a deduction  pect to be entitled to a foreign tax credit on your      formation in your electronic filing software.
for the taxes paid to Country X.                    U.S. income tax return on this income. See Pub. 
                                                    505, Tax Withholding and Estimated Tax, for a 
More information. The foreign tax credit and        worksheet  to  determine  how  to  revise  Form      Getting tax forms and publications.   Go to 
deduction, their limits, and carryback and carry-   W-4, Employee’s Withholding Allowance Certifi-       IRS.gov/Forms to view, download, or print all of 
                                                    cate.                                                the forms and publications you may need. You 

Publication 516 (November 2018)                                                                                                          Page 7

- 8 -

Page 8 of 9 Fileid: … ons/P516/201811/A/XML/Cycle03/source 17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

can also download and view popular tax publi- Resolving tax-related identity theft issues. our system and processing it can take up to 16
cations and instructions (including the 1040 in- • The IRS doesn’t initiate contact with tax- weeks.
structions) on mobile devices as an eBook at no payers by email or telephone to request
charge. Or you can go to IRS.gov/OrderForms personal or financial information. This in- Understanding an IRS notice or letter. Go to
to place an order and have forms mailed to you cludes any type of electronic communica- IRS.gov/Notices to find additional information
within 10 business days. tion, such as text messages and social me- about responding to an IRS notice or letter.
dia channels.
Access your online account (individual tax- • Go to IRS.gov/IDProtection for information. Contacting your local IRS office. Keep in
payers only). Go to IRS.gov/Account to se- • If your SSN has been lost or stolen or you mind, many questions can be answered on
curely access information about your federal tax suspect you’re a victim of tax-related iden- IRS.gov without visiting an IRS Tax Assistance
account. tity theft, visit IRS.gov/IdentityTheft to learn Center (TAC). Go to IRS.gov/LetUsHelp for the
• View the amount you owe, pay online, or what steps you should take. topics people ask about most. If you still need
set up an online payment agreement. help, IRS TACs provide tax help when a tax is-
• Access your tax records online. Checking on the status of your refund. sue can’t be handled online or by phone. All
• Review the past 24 months of your pay- • Go to IRS.gov/Refunds. TACs now provide service by appointment so
ment history. • The IRS can’t issue refunds before you’ll know in advance that you can get the
• Go to IRS.gov/SecureAccess to review the mid-February 2019 for returns that claimed service you need without long wait times. Be-
required identity authentication process. the EIC or the ACTC. This applies to the fore you visit, go to IRS.gov/TACLocator to find
entire refund, not just the portion associ- the nearest TAC, check hours, available serv-
Using direct deposit. The fastest way to re- ated with these credits. ices, and appointment options. Or, on the
ceive a tax refund is to combine direct deposit • Download the official IRS2Go app to your IRS2Go app, under the Stay Connected tab,
and IRS e-file. Direct deposit securely and elec- mobile device to check your refund status. choose the Contact Us option and click on “Lo-
tronically transfers your refund directly into your • Call the automated refund hotline at cal Offices.”
financial account. Eight in 10 taxpayers use di- 800-829-1954.
rect deposit to receive their refund. The IRS is- Watching IRS videos. The IRS Video portal
sues more than 90% of refunds in less than 21 Making a tax payment. The IRS uses the lat- (IRSVideos.gov) contains video and audio pre-
days. est encryption technology to ensure your elec- sentations for individuals, small businesses,
tronic payments are safe and secure. You can and tax professionals.
Refund timing for returns claiming certain make electronic payments online, by phone,
credits. The IRS can’t issue refunds before and from a mobile device using the IRS2Go Getting tax information in other languages.
mid-February 2019 for returns that claimed the app. Paying electronically is quick, easy, and For taxpayers whose native language isn’t Eng-
earned income credit (EIC) or the additional faster than mailing in a check or money order. lish, we have the following resources available.
child tax credit (ACTC). This applies to the en- Go to IRS.gov/Payments to make a payment Taxpayers can find information on IRS.gov in
tire refund, not just the portion associated with using any of the following options. the following languages.
these credits. • IRS Direct Pay: Pay your individual tax bill • Spanish IRS.gov/Spanish ( ).
or estimated tax payment directly from • Chinese IRS.gov/Chinese ( ).
Getting a transcript or copy of a return. The your checking or savings account at no • Vietnamese IRS.gov/Vietnamese ( ).
quickest way to get a copy of your tax transcript cost to you. • Korean IRS.gov/Korean ( ).
is to go to IRS.gov/Transcripts. Click on either • Debit or credit card: Choose an ap- • Russian IRS.gov/Russian ( ).
"Get Transcript Online" or "Get Transcript by proved payment processor to pay online, The IRS TACs provide over-the-phone inter-
Mail" to order a copy of your transcript. If you by phone, and by mobile device. preter service in over 170 languages, and the
prefer, you can: • Electronic Funds Withdrawal: Offered service is available free to taxpayers.
• Order your transcript by calling only when filing your federal taxes using
800-908-9946, or tax return preparation software or through
• Mail Form 4506-T or Form 4506T-EZ (both a tax professional. The Taxpayer Advocate
available on IRS.gov). • Electronic Federal Tax Payment Sys- Service (TAS) Is Here To
tem: Best option for businesses. Enroll- Help You
Using online tools to help prepare your re- ment is required.
turn. Go to IRS.gov/Tools for the following. • Check or money order: Mail your pay- What is TAS?
• The Earned Income Tax Credit Assistant ment to the address listed on the notice or
(IRS.gov/EITCAssistant) determines if instructions. TAS is an independent organization within the
you’re eligible for the EIC. • Cash: You may be able to pay your taxes IRS that helps taxpayers and protects taxpayer
• The Online EIN Application IRS.gov/EIN ( ) with cash at a participating retail store. rights. Their job is to ensure that every taxpayer
helps you get an employer identification is treated fairly and that you know and under-
number. What if I can’t pay now? Go to IRS.gov/ stand your rights under the Taxpayer Bill of
• The IRS Withholding Calculator IRS.gov/ ( Payments for more information about your op- Rights.
W4App) estimates the amount you should tions.
have withheld from your paycheck for fed- • Apply for an online payment agreement How Can You Learn About Your
eral income tax purposes and can help you (IRS.gov/OPA) to meet your tax obligation Taxpayer Rights?
perform a “paycheck checkup.” in monthly installments if you can’t pay
• The First Time Homebuyer Credit Account your taxes in full today. Once you complete The Taxpayer Bill of Rights describes 10 basic
Look-up IRS.gov/HomeBuyer ( ) tool pro- the online process, you will receive imme- rights that all taxpayers have when dealing with
vides information on your repayments and diate notification of whether your agree- the IRS. Go to TaxpayerAdvocate.IRS.gov to
account balance. ment has been approved. help you understand what these rights mean to
• The Sales Tax Deduction Calculator • Use the Offer in Compromise Pre-Qualifier you and how they apply. These are your rights.
(IRS.gov/SalesTax) figures the amount you (IRS.gov/OIC) to see if you can settle your Know them. Use them.
can claim if you itemize deductions on tax debt for less than the full amount you
Schedule A (Form 1040), choose not to owe.
claim state and local income taxes, and What Can TAS Do For You?
you didn’t save your receipts showing the Checking the status of an amended return. TAS can help you resolve problems that you
sales tax you paid. Go to IRS.gov/WMAR to track the status of can’t resolve with the IRS. And their service is
Form 1040X amended returns. Please note that free. If you qualify for their assistance, you will
it can take up to 3 weeks from the date you be assigned to one advocate who will work with
mailed your amended return for it to show up in you throughout the process and will do
Page 8 Publication 516 (November 2018)

- 9 -

Page 9 of 9           Fileid: … ons/P516/201811/A/XML/Cycle03/source                                      17:11 - 20-Dec-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

everything possible to resolve your issue. TAS    How Else Does TAS Help                           Low Income Taxpayer 
can help you if:                                  Taxpayers?                                       Clinics (LITCs)
 • Your problem is causing financial difficulty 
   for you, your family, or your business;        TAS works to resolve large-scale problems that   LITCs  are  independent  from  the  IRS.  LITCs 
 • You face (or your business is facing) an       affect many taxpayers. If you know of one of     represent individuals whose income is below a 
   immediate threat of adverse action; or         these broad issues, please report it to them at  certain level and need to resolve tax problems 
 • You’ve tried repeatedly to contact the IRS     IRS.gov/SAMS.                                    with the IRS, such as audits, appeals, and tax 
   but no one has responded, or the IRS                                                            collection disputes. In addition, clinics can pro-
   hasn’t responded by the date promised.           TAS  also  has  a  website, Tax  Reform        vide information about taxpayer rights and re-
                                                  Changes, which shows you how the new tax         sponsibilities in different languages for individu-
How Can You Reach TAS?                            law may change your future tax filings and helps als who speak English as a second language. 
                                                  you plan for these changes. The information is   Services are offered for free or a small fee. To 
TAS has offices  in every state, the District of  categorized by tax topic in the order of the IRS find a  clinic   near       you,     visit 
Columbia, and Puerto Rico. Your local advo-       Form 1040. Go to TaxChanges.us for more in-      TaxpayerAdvocate.IRS.gov/LITCmap  or  see 
cate’s number is in your local directory and at   formation.                                       IRS Pub. 4134, Low Income Taxpayer Clinic 
TaxpayerAdvocate.IRS.gov/Contact-Us.       You                                                     List.
can also call them at 877-777-4778.

                     To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                   Extension of time to file return 2 International organization, U.S. 
A                                                                       reemployment after serving        R
Allowances  3                                                           with    4                         Real estate tax 6
American Institute in Taiwan  3    F                                  Itemized deductions:                Recordkeeping, business 
Assistance (See Tax help)          Federal court employees     3        Contributions 6                    expenses    5
Away from home     4               Federal crime investigations    4    Home mortgage interest     6      Reemployed by federal agency   4
                                   Filing information 2                 Real estate tax 6                 Reporting:
                                   Foreign areas allowances    3                                           Business expenses   6
B                                  Foreign bank accounts     3                                             Moving expenses    6
Business expenses, how to          Foreign earned income and          L
  report 6                           housing exclusions      3        Lodging   4
                                   Foreign income   3                                                     S
                                   Foreign taxes  7                                                       Sale of home 4
C                                  Forms:                             M                                   Sale of personal property 4
Combat zone 1                        1116       7                     Meal expenses   5
Commuting expenses   5               3903       6                     Mortgage interest   6
Contributions    6                   FinCEN 114     3                 Moving expenses     6               T
Cost-of-living allowances  3                                                                              Taiwan, American Institute in 3
Credit for foreign taxes 7                                                                                Tax credit for foreign taxes 7
                                   H                                  P                                   Tax help 7
                                   Home, sale of  4                   Pay differentials 3                 Temporary assignment     4
D                                  Home leave     5                   Peace Corps volunteers       4      Terrorist action 2
Danger pay (See Pay differentials) Home mortgage interest    6        Personal property, sale of   4      Transportation expenses   5
Death due to terrorist action 2                                       Post differentials (See Pay         Travel expenses  4
Deduction for foreign taxes  7                                          differentials)
Differential pay 3                 I                                  Post exchanges    3
                                   Identity theft 8                   Principal representative     4      W
                                   Interest on home mortgage     6    Proving expenses    5               When to file return 2
E                                                                     Publications (See Tax help)
Entertainment expenses   5

Publication 516 (November 2018)                                                                                                    Page 9

PDF file checksum: 3049662784

(Plugin #1/8.13/12.0)