Previous Page: Publication 570 - Tax Guide for Individuals With Income from U.S. Possessions - Double Taxation Next Page: Publication 570 - Tax Guide for Individuals With Income from U.S. Possessions - Illustrated Example of Form 5074 Use   to find additional occurrences of topic items.

taxmap/pubs/p570-019.htm#TXMP7297d3a0 Chapter 5 Illustrated Examples(p21)

Illustrated Examples

Use the following examples to help you complete the correct attachment to your Form 1040. The completed form for each example is shown on the pages that follow.

taxmap/pubs/p570-019.htm#TXMP3a9b93d9 Illustrated Example  of Form 4563(p21)

Illustrated Example of Form 4563

John Black is a U.S. citizen, single, and under 65. He was a bona fide resident of American Samoa during all of 2007. John must file Form 1040 because his gross income from sources outside the possessions ($10,000 of dividends from U.S. corporations) is more than his adjusted filing requirement for single filers under 65. (See Filing Requirement if Possession Income Is Excluded in chapter 4.) Because he must file Form 1040 (not illustrated), he fills out Form 4563 to determine the amount of income from American Samoa he can exclude.

taxmap/pubs/p570-019.htm#TXMP5db004dd Completing Form 4563.(p21)

John enters his name and social security number at the top of the form.

taxmap/pubs/p570-019.htm#TXMP4efefcc0 Line 1.(p21)

On Form 4563 (see page 22), John enters the date his bona fide residence began in American Samoa, June 2, 2006. Because he is still a bona fide resident, he enters "not ended" in the second blank space.

taxmap/pubs/p570-019.htm#TXMP65d3af03 Line 2.(p21)

He checks the box labeled "Rented house or apartment" to describe his type of living quarters in American Samoa.

taxmap/pubs/p570-019.htm#TXMP32caa572 Lines 3a and 3b.(p21)

He checks "No" on line 3a because no family members lived with him. He leaves line 3b blank.

taxmap/pubs/p570-019.htm#TXMP2aa65772 Lines 4a and 4b.(p21)

He checks "No" on line 4a because he did not maintain a home outside American Samoa. He leaves line 4b blank.

taxmap/pubs/p570-019.htm#TXMP2a9239c4 Line 5.(p21)

He enters the name and address of his employer, Samoa Products Co. It is a private American Samoa corporation.

taxmap/pubs/p570-019.htm#TXMP01bf6a07 Line 6.(p21)

He enters the dates of his 2-week vacation to New Zealand from November 11 to November 25. That was his only trip outside American Samoa during the year.

taxmap/pubs/p570-019.htm#TXMP18a45b46 Line 7.(p21)

He enters the $24,000 in wages he received from Samoa Products Co.

taxmap/pubs/p570-019.htm#TXMP79d88938 Line 9.(p21)

He received $220 in dividends from an American Samoa corporation, which he enters here. He also received $10,000 of dividends from a U.S. corporation, but he will enter that amount only on his Form 1040 because the U.S. dividends do not qualify for the possession exclusion.

taxmap/pubs/p570-019.htm#TXMP3cc81594 Line 15.(p21)

John totals the amounts on lines 7 and 9 to get the amount he can exclude from his gross income in 2007. He will not enter his excluded income on Form 1040. However, he will attach his completed Form 4563 to his Form 1040.

Previous Page:  Publication 570 - Tax Guide for Individuals With Income from U.S. Possessions - Double Taxation Next Page:  Publication 570 - Tax Guide for Individuals With Income from U.S. Possessions - Illustrated Example of Form 5074 Use   to find additional occurrences of topic items.