Offside Law
From DCFanguide
Offside: A player gains an advantage by being nearer to his opponent's goal than BOTH the ball and the second to last defender. Offside is called by the Assistant Referee (AR), although sometimes it can be missed. The exceptions are when the player recieves the ball on his half of the field, he recieves the ball directly from a goal kick, throw in, or when the ball was recieved directly, not from a teammate.
The Difference Between Active and Passive Offside
Active Offside: A player gains an advantage by being closer to the opponent's goal than the ball and the second to last defender and the ball is player to him and he touches it OR when he moves toward a ball traveling in his direction. A player can also be called for offside when he interferes with an opponent while in an offside position. Example- an injured player is laying in front of the goal keeper while the goal keeper is trying to make a save.
Passive Offside: A player is in an offside position but DOES NOT interfere with an opponent NOR does that player gain an advantage from being in that position. Example- an injured player laying on the opposite side of the field as the goalkeeper and the goal keeper can easily make the save.
FIFA's update: A few years ago, 2005, FIFA updated the offside rule to include ANY part of the player's body including the head, torso, and any part of the legs. This update does not include the arms.