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Terms in this set (57)

1. The taxpayer's tax rate generally is higher than on a joint return.

2. The taxpayer's exemption amount for figuring the alternative minimum tax is half that allowed on a joint return.

3. The taxpayer cannot take the Credit for Child and Dependent Care Expenses in most cases, and the amount he or she can exclude from income under an employer's dependent care assistance program is limited.

4. If the taxpayer is legally separated or living apart from his or her spouse, the taxpayer may be able to file a separate return and still take the credit. See Joint Return Test in Publication 503 - Child and Dependent Care Expenses, for more information.

5. The taxpayer cannot take the exclusion or credit for adoption expenses in most cases.

6. The taxpayer cannot take the education credits (the American Opportunity Tax Credit and Lifetime Learning
Credit) or the deduction for student loan interest.

7. The taxpayer cannot exclude any interest income from qualified U.S. savings bonds he or she used for higher education expenses.

8. If the taxpayer lived with his or her spouse at any time during the tax year:
The taxpayer cannot claim the Credit for the Elderly or the Disabled.

The taxpayer must include in income a greater percentage (up to 85%) of any Social Security or
equivalent railroad retirement benefits he or she received.

The following credits are reduced at income levels half those for a joint return:

The Child Tax Credit.
The Retirement Savings Contributions Credit.
The taxpayer's capital loss deduction limit is $1,500 (instead of $3,000 on a joint return).

If the taxpayer's spouse itemizes deductions, the taxpayer cannot claim the standard deduction.

If the taxpayer can claim the standard deduction, his or her basic standard deduction is half the amount allowed on a joint return.
➢ The taxpayer is considered to be engaged in a trade or business in the United States if he or she is temporarily present in the United States as a nonimmigrant on an "F," "J," "M," or "Q" visa. The taxable part of any U.S. source scholarship or fellowship grant received by a nonimmigrant in "F," "J," "M," or "Q" status is treated as effectively connected with a trade or business in the United States.
➢ If the taxpayer is a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States, he or she is considered to be engaged in a trade or business in the United States.
➢ The taxpayer is usually engaged in a U.S. trade or business when he or she performs personal services in the United States.
➢ If the taxpayer owns and operates a business in the United States selling services, products, or merchandise, he or she is, with certain exceptions, engaged in a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income.
➢ Gains and losses from the sale or exchange of U.S. real property interests (whether or not they are capital assets) are taxed as if the taxpayer is engaged in a trade or business in the United States. He or she must treat the gain or loss as effectively connected with that trade or business.
➢ Income from the rental of real property may be treated as ECI if the taxpayer elects to do so.
1. Use Form 1040X - Amended U.S. Individual Income Tax Return, to file an amended tax return. An amended return cannot be e-filed. The taxpayer must file it on paper.

2. The taxpayer should consider filing an amended tax return if there is a change in his or her filing status, income, deductions, or credits.

3. The taxpayer normally does not need to file an amended return to correct math errors. The IRS will automatically make those changes. Also, do not file an amended return because the taxpayer forgot to attach tax forms, such as W-2s or schedules. The IRS normally will send a request asking for those.

4. Generally, the taxpayer must file Form 1040X within three years from the date he or she filed the original tax return or within two years of the date he or she paid the tax, whichever is later. Be sure to enter the year of the return the taxpayer is amending at the top of Form 1040X.

5. If the taxpayer is amending more than one tax return, prepare a 1040X for each return and mail them to the IRS in separate envelopes. The taxpayer will find the appropriate IRS address to mail the return to in the Form 1040X instructions.

6. If the taxpayer's changes involve the need for another schedule or form, he or she must attach that schedule or form to the amended return.

7. If the taxpayer is filing an amended tax return to claim an additional refund, wait until he or she has received the original tax refund before filing Form 1040X.

8. Amended returns take up to 12 weeks to process. The taxpayer may cash the original refund check while waiting for the additional refund.

9. If the taxpayer owes additional taxes with Form 1040X, file it and pay the tax as soon as possible to minimize interest and penalties.

10. The taxpayer can track the status of the amended tax return three weeks after it is filed with the IRS's new tool called, 'Where's My Amended Return?' The automated tool is available on and by phone at 866-464-2050. The online and phone tools are available in English and Spanish. The taxpayer can track the status of the amended return for the current year and up to three prior years.

11. To use either 'Where's My Amended Return' tool, just enter the taxpayer identification number (usually a Social Security number), date of birth and zip code. If the taxpayer has filed amended returns for more than one year, he or she can select each year individually to check the status of each. If the taxpayer uses the tool by phone, he or she will not need to call a different IRS phone number unless the tool tells him or her to do so.