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IRS Form 2553 With Instructions

Printable Tax Form 2553

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Form 2553 With Template & PDF Example

Form 2553 is used for those taxpayers who have chosen to be taxed as a resident of a foreign country. It’s filed with your tax return and is used to provide the IRS with information. It’s used to report the amount of taxes you paid in the foreign country and the amount of income that was generated by you in the foreign country. This income is considered taxable income. There is a section to report the amount of tax you paid to the foreign country on these IRS Form 2553 of income. Taxpayers should provide their U.S. Social Security number, name and address of the foreign country to which they are being taxed. It’s important that you provide the IRS with this information as it will help them in determining the amount of taxes owed. This example of form 2553 filled out isn’t necessary for tax return. It’s only necessary if the taxpayer has foreign tax credits that they would like to apply to their U.S. taxes.

What the Form Contains?

It is used to claim exclusion from sale of a principal residence. It may be filed jointly or separately if spouse isn’t purchasing principal residence. It’s a two-page form 2553 with instructions that includes a space to list the date and name of the individual who has claimed the exclusion. It has space to list property addresses and for the purchaser to sign and date 2553 form. First page of documents includes a declaration in which the purchaser must declare that they aren’t a resident of the country of property or a nonresident alien of the United States and that they meet requirements to exclude the gain on the property. Form 2553 PDF includes a space for purchasers to list their spouse's name, address, and social security number. Second page of the form asks the individual to list the date the property was purchased, sales price of the property, and date of the sale. It also asks for the taxpayer's name, social security number.

Who Should Fill Out the 2553

  1. If an individual is living in the United States and they become a citizen of a different country, they will need to use IRS 2553 to report the change.
  2. It’s used if an individual is married and becomes a citizen of another country.
  3. 2553 reports the change of citizenship to a foreign country in the individual's passport.
  4. Individuals will use form to report the loss of their American citizenship.

Why File Out Form 2553?

It is used for several different reasons. For instance, tax form 2553 is used when a taxpayer is eligible to make contributions to a traditional IRA but cannot do so because of their income levels. It’s also used when a taxpayer has a qualified employer-sponsored retirement plan and is eligible for a reduced IRA contribution limit. It can be used when a ratepayer cannot make contributions to a traditional IRA due to the employer not providing any contributions. Lastly, it can be used when a taxpayer isn’t eligible to enroll in a qualified employer-sponsored retirement plan but would still like to make a contribution and isn’t  eligible for any other IRA.

Why Is Form 2553 So Important? 

It is an application for exemption from federal income tax. It’s filed by an organization seeking recognition as an exempt organization from the Internal Revenue Service (IRS) under section 501(a) of the Internal Revenue Code. IRS Form 2553 for 2020 is used for several kinds of organizations. These include charitable organizations, nonprofit organizations, social clubs, and volunteer fire department and rescue squads.

Organization filing a IRS Form 2553 PDF is sometimes referred to as a "grantee organization." Organization is seeking recognition as an exempt organization 501 of the Internal Revenue Code. This is so because this section provides tax exemption for certain kinds of organizations. Probation and parole organizations are included in this category. However, social clubs, which are organized for pleasure, recreation, and other similar purposes aren’t included.

Printable 2553 IRS Form

It’s a federal tax form that allows small business corporations to choose to be taxed as a corporation rather than as a sole proprietorship, partnership, or S corporation. This document must be filed with the IRS in order to make changes.

Document can be used by small business corporations to elect these three tax types:

  1. Taxed as sole proprietor
  2. Taxed as partnership
  3. Taxed as corporation

Small business corporations can use IRS Form 2553 with instructions to elect to as a corporation. If they elect to be taxed as a corporation, they will be taxed as a corporation to the extent of their income. Corporation will not be taxed on the income of its owners.

Printable Tax Form 2553

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