Instructions For Form 1040-Ss - U.s. Self-Employment Tax Return (Including The Additional Child Tax Credit For Bona Fide Residents Of Puerto Rico) - Internal Revenue Service - 2005 Page 3

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its dependent members, you can
Even if you do not have to pay
your spouse under a divorce or
request exemption from SE tax by filing
self-employment tax because of a
separate maintenance decree, or
Form 4029, Application for Exemption
social security agreement, you may still
2. You meet all of the following
From Social Security and Medicare
have to file a tax return with the Internal
conditions.
Taxes and Waiver of Benefits. If you
Revenue Service.
a. You lived apart from your spouse
filed Form 4029 and have received IRS
for the last 6 months of 2005.
More Than One
approval, do not file Form 1040-SS.
Temporary absences for special
See Pub. 517 for details.
circumstances, such as business,
Business
medical care, school, or military
Employees of Foreign
If you were a farmer and had at least
service, count as time lived in the
Governments or
one other business or you had two or
home.
more businesses, your net earnings
b. You file a separate return from
International Organizations
from self-employment are the combined
your spouse.
You must pay SE tax on income you
net earnings from all of your
c. You paid over half the cost of
earned as a U.S. citizen or a resident of
businesses. If you had a loss in one
keeping up your home for 2005.
Puerto Rico employed by a foreign
business, it reduces the income from
d. Your home was the main home of
government (or, in certain cases, by a
another. Complete and file only one
your child, adopted child, stepchild, or
wholly owned instrumentality of a
Form 1040-SS for any 1 year. Attach a
eligible foster child for more than half of
foreign government or an international
profit and loss statement for each trade
2005.
organization under the International
or business, and include the net
e. You could claim the child as a
Organizations Immunities Act) for
earnings in Part V.
dependent (see Pub. 501, Exemptions,
services performed in the United
Standard Deduction, and Filing
Joint returns. If both you and your
States, Puerto Rico, Guam, American
Information).
spouse have self-employment income
Samoa, the Virgin Islands, or the CNMI.
from a farm or nonfarm business, each
Report income from this employment
Married filing jointly. You can choose
of you must complete and file a
on Part IV, line 1. If you performed
this filing status if you were married and
separate Part III or Part IV. Be sure to
services elsewhere as an employee of
both you and your spouse agree to file
enter at the top of each Part III or Part
a foreign government or an
a joint return. If you choose to file a
IV the name and social security number
international organization, those
joint return, check the box for married
of the spouse who owns the business.
earnings are exempt from SE tax.
filing jointly and be sure to include your
Each of you must also complete a
spouse’s name and social security
Commonwealth or Territory
separate Part V.
number (SSN) on the lines provided
Residents Living Abroad
below your name and SSN. If your
Community Income
spouse also had self-employment
Generally, if you are a resident of
In most cases, if any of the income
income, complete and attach a
Guam, American Samoa, the Virgin
from a business, including farming, is
separate Part V and, if applicable, Part
Islands, the CNMI, or Puerto Rico living
community income, all of the income
VI. If necessary, attach a separate Part
abroad, you must pay SE tax.
from that business is considered
III or Part IV for your spouse’s farm or
Exception. The United States has
self-employment earnings of the
nonfarm business.
social security agreements with many
spouse who carried on the trade or
Joint and several tax liability. If
countries to eliminate dual taxes under
business. The identity of the spouse
you file a joint return, both you and your
two social security systems. Under
who carried on the trade or business is
spouse are generally responsible for
these agreements, you must generally
determined by the facts in each
the tax and any interest or penalties
pay social security and Medicare taxes
situation. If you and your spouse are
due on the return. This means that if
only to the country you live in.
partners in a partnership, see
one spouse does not pay the tax due,
The United States now has social
Partnership Income or Loss beginning
the other may have to.
security agreements with the following
on page 4.
Married filing separately. You can
countries: Australia, Austria, Belgium,
choose this filing status if you were
Canada, Chile, Finland, France,
Fiscal Year Filers
married. This method may benefit you if
Germany, Greece, Ireland, Italy, Japan,
If your tax year is a fiscal year, use the
you want to be responsible only for
Luxembourg, the Netherlands, Norway,
tax rate and earnings base that apply at
your own tax.
Portugal, South Korea, Spain, Sweden,
the time the fiscal year begins. Do not
Switzerland, and the United Kingdom.
prorate the tax or earnings base for a
Line 4
Additional agreements are expected in
fiscal year that overlaps the date of a
the future.
If either of the following applies, see
rate or earnings base change.
Schedule H (Form 1040), Household
If you have questions about
Employment Taxes, and its instructions
international social security
to find out if you owe these taxes.
agreements, you can:
Specific Instructions
You paid any one household
Visit the Social Security
employee cash wages of $1,400 or
Administration (SSA) website at
more in 2005.
,
Part I—Total Tax and
You paid total cash wages of $1,000
Call the SSA Office of International
or more in any calendar quarter of 2004
Credits
Programs at 410-965-4538 or
or 2005 to household employees.
410-965-0377 (these are not toll-free
numbers), or
Line 1
Line 5
Write to Social Security
Check the filing status that applies to
Administration, Office of International
Employee social security and
you.
Programs, P.O. Box 17741, Baltimore,
Medicare tax on tips not reported to
Single. Your filing status is single if:
MD 21235-7741. (Do not send Form
employer. Complete Form 4137,
1040-SS to this address. Instead, see
1. On the last day of the year, you
Social Security and Medicare Tax on
Where To File on page 1.)
are unmarried or legally separated from
Unreported Tip Income, if you received
-3-

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