Get the free Form 8873

Use this form to figure the amount of extraterritorial income excluded from gross income for the tax year. Eligible taxpayers can use this form to report foreign trading gross receipts and calculate

How to fill out form 8873

How to fill out Form 8873

1. Download Form 8873 from the IRS website.
2. Read the instructions carefully to understand the requirements.
3. Complete your personal information in the designated fields.
4. Report your Qualified Electric Vehicle (EV) information, including manufacturer details and vehicle identification number.
5. Calculate the credit amount based on the qualifying vehicle purchase.
6. Double-check all entries for accuracy.
7. Sign and date the form.
8. Submit the form to the IRS along with your tax return.

Who needs Form 8873?

1. Individuals who purchased a qualified electric vehicle and wish to claim the electric vehicle tax credit.
2. Taxpayers who are eligible for the Qualified Plug-in Electric Drive Motor Vehicle Credit.

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 to claim the credit for contributions to a retirement savings account under the Retirement Savings Contributions Credit (often referred to as the Saver's Credit).

Who is required to file Form 8873?

Individuals who made contributions to qualifying retirement accounts and meet certain income and filing requirements are required to file Form 8873 to claim the Saver's Credit.

How to fill out Form 8873?

To fill out Form 8873, taxpayers need to provide personal information such as their name, Social Security number, and details of their retirement account contributions. They must also calculate their credit based on their income and contribution amounts using the provided worksheet.

What is the purpose of Form 8873?

The purpose of Form 8873 is to enable eligible taxpayers to claim a nonrefundable tax credit for contributions made to retirement savings accounts, thereby encouraging retirement savings.

What information must be reported on Form 8873?

Form 8873 requires reporting information such as the amount contributed to retirement accounts during the tax year, the taxpayer's filing status, adjusted gross income, and any prior year contributions that may affect the credit.