Get the free Form 8873 - irs

Use this form to figure the amount of extraterritorial income excluded from gross income for the tax year. Attach the form to your income tax return.

How to fill out form 8873 - irs

How to fill out Form 8873

1. Obtain Form 8873 from the IRS website or your tax professional.
2. Fill in your name, address, and Social Security Number (SSN) or Employer Identification Number (EIN) in the designated spaces.
3. Complete Part I by providing information about your investment in Qualified Medicaid Bonds.
4. Move on to Part II to calculate the amount of your qualified bond interest.
5. Review the instructions carefully to ensure all numbers are accurate.
6. Sign and date the form before submitting it.
7. Attach the completed Form 8873 to your tax return.

Who needs Form 8873?

1. Individuals who have received interest from Qualified Medicaid Bonds.
2. Taxpayers who need to report the interest on their tax returns.
3. Investors seeking to claim tax benefits associated with qualified investment income.

People Also Ask about

What is the extra territorial income?

Extraterritorial income is the gross income of the taxpayer attributable to foreign trading gross receipts (defined below). The taxpayer reports all of its extraterritorial income on its tax return.

What is the meaning of extra territoriality?

noun. the privilege granted to some aliens, esp diplomats, of being exempt from the jurisdiction of the state in which they reside. the right or privilege of a state to exercise authority in certain circumstances beyond the limits of its territory.

Who files form 8873?

Form 8873 is attached to the taxpayers income tax return. Both corporate and non-corporate taxpayers who have qualifying transactions may now be required to file Form 8873. The exclusion reported on Form 8873 was created by the Foreign Sales Corporation (FSC) Repeal and Extraterritorial Income Exclusion Act of 2000.

What is the extraterritorial income?

Extraterritorial income is the gross income of the taxpayer attributable to foreign trading gross receipts. The taxpayer reported all of its extraterritorial income on its tax return. The taxpayer used Form 8873 to calculate its exclusion from income that is qualifying foreign trade income.

What is a territorial tax income?

Territorial taxation is a system that excludes foreign earnings from a country's domestic tax base. This is common throughout the world and is the opposite of worldwide taxation, where foreign earnings are included in the domestic tax base.

What is the extra territorial area?

If something is extraterritorial, it's beyond the boundaries or control of a particular country, state, or region. This adjective is mainly used in a legal context.

For pdfFiller’s FAQs

What is Form 8873?

Form 8873 is a tax form used in the United States for claiming a tax credit for the renewable electricity production tax credit or the refined coal production tax credit.

Who is required to file Form 8873?

Taxpayers who claim the renewable electricity production tax credit or the refined coal production tax credit are required to file Form 8873.

How to fill out Form 8873?

To fill out Form 8873, taxpayers need to provide information regarding the electricity or refined coal production, including current year production amounts, prior year credits, and any applicable deductions.

What is the purpose of Form 8873?

The purpose of Form 8873 is to calculate and claim the renewable electricity production tax credit or the refined coal production tax credit, which incentivizes production of renewable energy.

What information must be reported on Form 8873?

Information required on Form 8873 includes details about the type of credit claimed, production amounts of electricity or refined coal, and any credits carried forward from previous years.